12. Income Taxes

The components of the Company’s loss before provision for (benefit from) income taxes were as follows:

	Years Ended December 31,
	2016			2015			2014
United States of America	$	(7,595	)	$	(17,173	)	$	(26,427	)
International		(7,481	)		(15,171	)		(8,200	)
	$	(15,076	)	$	(32,344	)	$	(34,627	)

The components of the provision for (benefit from) income taxes were as follows:

	Years Ended December 31,
	2016			2015			2014
Current income tax provision
Federal	$	—		$	—		$	—
State		58			111			101
Foreign		1,708			1,193			700
Total current income tax provision		1,766			1,304			801
Deferred income tax benefit
Federal		—			—			(2,094	)
State		—			—			(191	)
Foreign		(362	)		(299	)		28
Total deferred income tax benefit		(362	)		(299	)		(2,257	)
Provision for (benefit from) income taxes	$	1,404		$	1,005		$	(1,456	)

The Company has taxable in the U.S. for the year ended December 31, 2016, which will be fully offset by net operating loss carryovers from prior years. The Company incurred operating losses in previous years and has recorded a full valuation allowance against its deferred tax assets (except for the deferred tax assets associated with the Company’s subsidiaries in China, France, Ireland, Japan and the United Kingdom). Accordingly, the Company has not recorded a provision for income taxes for any of the periods presented other than provisions for foreign and state income taxes.

The differences in the total provision for (benefit from) income taxes that would result from applying the 34% federal statutory rate to loss before provision for (benefit from) income taxes and the reported provision for (benefit from) income taxes were as follows:

	Years Ended December 31,
	2016			2015			2014
Tax benefit at U.S. statutory rate	$	(5,126	)	$	(10,997	)	$	(11,773	)
State income taxes, net of federal benefit		(147	)		(104	)		(105	)
Foreign income and withholding taxes		4,317			6,033			3,593
Stock-based compensation		2,231			1,039			984
Change in valuation allowance		155			3,807			5,982
Research and development credits		(736	)		(1,067	)		(807	)
Uncertain tax positions		1,146			1,277			52
Provision to return adjustments		(484	)		848			(53	)
Other		48			169			671
	$	1,404		$	1,005		$	(1,456	)

Major components of the Company’s deferred tax assets (liabilities) as of December 31, 2016 and 2015 are as follows:

	December 31,
	2016			2015
Net operating loss	$	32,551		$	32,703
Accruals and reserves		2,934			2,887
Research and development credits		7,368			6,247
Stock-based compensation		4,622			5,028
Property and equipment and intangible assets		(1,855	)		(2,036	)
Other		2,842			2,802
Net deferred tax assets		48,462			47,631
Valuation allowance		(49,382	)		(48,913	)
Total noncurrent net deferred tax liabilities, net of valuation allowance	$	(920	)	$	(1,282	)

As a result of certain accounting guidance for stock compensation, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets at December 31, 2016 and 2015 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. The provision for income taxes will be decreased by $1,423 if and when such benefits are ultimately realized and reduce taxes payable.

The Code, as amended, imposes restrictions on the utilization of net operating losses in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 (“IRC Section 382”). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Utilization of the federal and state net operating losses may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions. An analysis was conducted through December 31, 2016 to determine whether an ownership change had occurred since inception. The analysis indicated that because an ownership change occurred in a prior year, federal and state net operating losses of $184 and $214, respectively, were significantly limited pursuant to IRC Section 382. In the event the Company has subsequent changes in ownership, net operating losses and research and development credit carryovers could be further limited and may expire unutilized.

As of December 31, 2016, the Company had federal and state net operating loss carryforwards of approximately $99,675 and $80,937, respectively. The federal net operating loss carryforward will begin expiring in 2028 and the state net operating loss carryforward will begin expiring in 2017. As of December 31, 2016, the Company had federal and state research and development credits of approximately $5,751 and $5,644, respectively. The federal research and development credits will begin expiring in 2026. The state research and development credits are not currently subject to expiration.

The Company has recorded a full valuation allowance against its otherwise recognizable deferred income tax assets as of December 31, 2016 and 2015 (except for the deferred income tax assets associated with the Company’s subsidiaries in China, France, Ireland, Japan and the United Kingdom). The Company has determined, after evaluating all positive and negative historical and prospective evidence, that it is more likely than not that the deferred tax assets will not be realized. The valuation allowance increased by $469, $5,467 and $9,295 during the years ended December 31, 2016, 2015 and 2014, respectively.

The Company files U.S. state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. These audits include questioning the timing and amount of deduction, the nexus of income among various tax jurisdictions and compliance with state, local and foreign tax laws. The Company is not currently under any examination by the U.S. state or foreign tax authorities. Because of net operating loss and credit carry forwards, all of the Company’s tax years dating to inception in 2006 remain open to examination.

As of December 31, 2016 and 2015, the Company had unrecognized tax benefits of $1,049 and $357, respectively, that if recognized would impact the annual effective tax rate. During 2016, 2015 and 2014, the Company did not recognize any interest or penalties related to unrecognized tax benefits. The aggregate changes in the balance of gross unrecognized tax benefits were as follows:

Ending balance as of December 31, 2013	$	1,088
Increase in balances related to tax positions taken during the current period		394
Increase in balances related to tax positions taken during the prior period		99
Ending balance as of December 31, 2014		1,581
Increase in balances related to tax positions taken during the current period		3,196
Increase in balances related to tax positions taken during the prior period		2,781
Ending balance as of December 31, 2015		7,558
Decrease in balances related to tax positions taken during the current period		(2	)
Increase in balances related to tax positions taken during the prior period		1,240
Ending balance as of December 31, 2016	$	8,796

The Company does not anticipate that the amount of unrecognized tax benefits relating to tax positions existing at December 31, 2016 will materially increase or decrease within the next twelve months.

U.S. income taxes and foreign withholding taxes associated with the repatriation of earnings of foreign subsidiaries were not provided for on a cumulative total of $12,025 of undistributed earnings for certain foreign subsidiaries as of December 31, 2016. The Company intends to reinvest these earnings indefinitely in its foreign subsidiaries. If these earnings were distributed to the U.S. in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, the Company would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. Determination of the amount of unrecognized deferred income tax liability related to these earnings is not practicable.