Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017			2016			2015
United States	$	(32,853	)	$	(39,107	)	$	(59,797	)
Foreign	(26,736		)	(26,523		)	(24,538		)
Loss before provision for income taxes	$	(59,589	)	$	(65,630	)	$	(84,335	)

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,
	2017		2016			2015
Current income tax provision:
Federal	$	—	$	—		$	—
State	114		105			147
Foreign	1,580		1,838			1,139
Total current income tax provision	1,694		1,943			1,286
Deferred income tax benefit:
Federal	—		—			—
State	—		—			—
Foreign	52		(736		)	(105		)
Total deferred income tax benefit	52		(736		)	(105		)
Total income tax provision (benefit)	$	1,746	$	1,207		$	1,181

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,
	2017			2016			2015
U.S. Federal tax benefit at statutory rates	$	(20,260	)	$	(22,310	)	$	(28,681	)
State income taxes, net of federal tax benefit	(806		)	(855		)	(1,632		)
Foreign rate differential	5,220			3,711			3,964
Stock based compensation	3,182			4,467			4,673
Other permanent differences	(494		)	(750		)	(99		)
Deferred adjustments / U.S. rate change	7,811			—			—
Other	262			1,494			536
Valuation allowance	6,831			15,450			22,420
Total income tax (benefit) provision	$	1,746		$	1,207		$	1,181

Schedule of the components of deferred tax assets and liabilities

Major components of the Company’s deferred tax assets (liabilities) at December 31, 2017 and 2016 are as follows (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Accrued expenses	$	2,371		$	3,037
Long-lived intangible assets and fixed assets — basis difference	19,884			22,146
Net operating loss carryforwards	80,615			68,356
Stock-based compensation	16,886			19,515
Deferred revenue	2,739			4,060
Convertible note hedge	1,467			6,387
Other	2,721			2,276
Total deferred tax assets	126,683			125,777
Valuation allowance	(118,606		)	(111,775		)
Deferred tax assets, net of valuation allowance	8,077			14,002
Deferred tax liabilities:
Prepaid expenses and deferred commissions	(5,672		)	(7,718		)
Convertible note discount	(1,074		)	(4,721		)
Other	(410		)	(591		)
Total deferred tax liabilities	(7,156		)	(13,030		)
Net deferred tax assets (liabilities)	$	921		$	972

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, 2017, 2016 and 2015 is as follows (in thousands):



	Years Ended December 31,
	2017		2016		2015
Balance at January 1	$	276	$	276	$	276
Additions for tax positions related to the current year	995		—		—
Balance at December 31	$	1,271	$	276	$	276