Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The components of loss before income taxes are presented below:



	Year Ended December 31,
	2017			2016			2015
Domestic	$	(71,343	)	$	(157,067	)	$	(69,287	)
Foreign	(58,357		)	(37,084		)	(17,691		)
Loss before income taxes	$	(129,700	)	$	(194,151	)	$	(86,978	)

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are presented below:



	Year Ended December 31,
	2017			2016			2015
U.S. federal income taxes:
Current	$	27		$	(17	)	$	22
Deferred	(523		)	1,396			1,732
Foreign income taxes:
Current	(379		)	(393		)	(123		)
Deferred	(2,269		)	(5,177		)	(1,003		)
State income taxes:
Deferred	264			314			388
Income tax expense (benefit)	$	(2,880	)	$	(3,877	)	$	1,016

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) for the years ended December 31, 2017, 2016 and 2015 differed from amounts computed by applying the applicable U.S. federal corporate income tax rate of 34% to loss before income taxes as a result of the following:



	2017			2016			2015
Computed statutory income tax benefit	$	(44,098	)	$	(66,011	)	$	(29,573	)
State and provincial income tax benefit, net of federal income taxes	(3,294		)	(7,905		)	(3,157		)
Nondeductible stock based compensation	4,147			3,321			3,182
Nondeductible officer compensation	476			—			2,433
Gain on dividend distribution of AquaBounty common stock	3,965			—			—
Impairment of goodwill	4,700			—			—
Research and development tax incentives	(1,166		)	(6,350		)	(348		)
Acquisition and internal restructuring transaction costs	354			571			883
Provisional impact of the Tax Act	85,288			—			—
Enacted changes in foreign tax rates and foreign tax reforms	2,138			—			(961		)
U.S.-foreign rate differential	5,410			3,463			620
Other, net	(64		)	1,485			(98		)
	57,856			(71,426		)	(27,019		)
Change in valuation allowance for deferred tax assets	(60,736		)	67,549			28,035
Total income tax expense (benefit)	$	(2,880	)	$	(3,877	)	$	1,016

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that comprise the deferred tax assets and liabilities as of December 31, 2017 and 2016, are as follows:



	2017			2016
Deferred tax assets
Allowance for doubtful accounts	$	1,300		$	1,676
Inventory	489			447
Equity securities and investments in affiliates	17,510			31,729
Accrued liabilities and long-term debt	3,131			4,168
Stock-based compensation	26,936			8,460
Deferred revenue	61,785			68,056
Research and development tax credits	11,385			10,396
Net operating and capital loss carryforwards	111,453			144,502
Total deferred tax assets	233,989			269,434
Less: Valuation allowance	215,582			256,165
Net deferred tax assets	18,407			13,269
Deferred tax liabilities
Property, plant and equipment	237			406
Intangible assets	33,790			29,870
Total deferred tax liabilities	34,027			30,276
Net deferred tax liabilities	$	(15,620	)	$	(17,007	)

Summary of Valuation Allowance

Activity within the valuation allowance for deferred tax assets during the years ended December 31, 2017, 2016 and 2015 was as follows:



	2017			2016			2015
Valuation allowance at beginning of year	$	256,165		$	190,174		$	161,660
Increase (decrease) in valuation allowance as a result of
Mergers and acquisitions, net	—			(1,416		)	1,228
Current year operations	26,619			67,549			28,035
Adoption of ASU 2016-09	17,843			—			—
Provisional impact of the Tax Act	(87,473		)	—			—
Changes in foreign tax rates and foreign tax reforms	1,327			—			—
Foreign currency translation adjustment	1,101			(142		)	(749		)
Valuation allowance at end of year	$	215,582		$	256,165		$	190,174