Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Summary of income before income tax, domestic and foreign

The components of the Company’s loss before provision (benefit) for income taxes are as follows (in thousands):



	Years Ended December 31,
	2016			2015			2014
United States	$	(39,107	)	$	(59,797	)	$	(59,249	)
Foreign	(26,523		)	(24,538		)	(4,795		)
Loss before provision for income taxes	$	(65,630	)	$	(84,335	)	$	(64,044	)

Components of income tax provision (benefit)

The components of the provision (benefit) for income taxes attributable to continuing operations are as follows (in thousands):



	Years Ended December 31,
	2016			2015			2014
Current income tax provision:
Federal	$	—		$	—		$	—
State	105			147			40
Foreign	1,838			1,139			822
Total current income tax provision	1,943			1,286			862
Deferred income tax benefit:
Federal	—			—			—
State	—			—			—
Foreign	(736		)	(105		)	(7		)
Total deferred income tax benefit	(736		)	(105		)	(7		)
Total income tax provision (benefit)	$	1,207		$	1,181		$	855

Schedule of effective income tax rate reconciliation

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



	Years Ended December 31,
	2016			2015			2014
U.S. Federal tax benefit at statutory rates	$	(22,310	)	$	(28,681	)	$	(21,795	)
State income taxes, net of federal tax benefit	(855		)	(1,632		)	(2,013		)
Foreign rate differential	3,711			3,964			734
Stock based compensation	4,467			4,673			4,121
Other permanent differences	(750		)	(99		)	941
Other	1,494			536			(82		)
Valuation allowance	15,450			22,420			18,949
Total income tax (benefit) provision	$	1,207		$	1,181		$	855

Schedule of the components of deferred tax assets and liabilities

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



	December 31,
	2016			2015
Deferred tax assets:
Accrued expenses	$	3,037		$	1,508
Long-lived intangible assets and fixed assets — basis difference	22,146			12,766
Net operating loss carryforwards	68,356			68,395
Stock-based compensation	19,515			15,049
Deferred revenue	4,060			2,828
Convertible note hedge	6,387			10,299
Other	2,276			1,418
Total deferred tax assets	125,777			112,263
Valuation allowance	(111,775		)	(96,326		)
Deferred tax assets, net of valuation allowance	14,002			15,937
Deferred tax liabilities:
Prepaid expenses and deferred commissions	(7,718		)	(7,401		)
Convertible note discount	(4,721		)	(7,688		)
Other	(591		)	(612		)
Total deferred tax liabilities	(13,030		)	(15,701		)
Net deferred tax assets (liabilities)	$	972		$	236

Summary of the reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2016, 2015, and 2014 is as follows (in thousands):



	Years Ended December 31,
	2016		2015		2014
Balance at January 1	$	276	$	276	$	276
Additions for tax positions related to the current year	—		—		—
Balance at December 31	$	276	$	276	$	276