Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The provision (benefit) for income taxes is as follows for the years ended December 31, 2013, 2012 and 2011 (in thousands):


	Years Ended December 31,
	2013		2012		2011
Current:
Federal	$	(3,263)	$	(9,531)	$	14,406
State		—		—		3,461


Total current		(3,263)		(9,531)		17,867

Deferred:
Federal		3,842		6,707		(10,660)
State		—		—		—


Total deferred		3,842		6,707		(10,660)


Total	$	579	$	(2,824)	$	7,207

Reconciliation of Expected Income Tax (Benefit) Expense Computed Using Federal Statutory Income Tax Rate

A reconciliation of the expected income tax benefit (expense) computed using the federal statutory income tax rate to the Company’s effective income tax rate is as follows for the years ended December 31, 2013, 2012 and 2011:


	December 31,
	2013		2012		2011
Income tax benefit computed at federal statutory tax rate		35.00%		35.00%		35.00%
State taxes, net of federal benefit		4.02		7.07		3.95
Change in valuation allowance		(38.02)		(28.08)		(74.29)
General business credits and other credits		0.52		0.12		(2.36)
Permanent differences		(1.75)		(0.63)		(0.60)
Interest and penalties		(1.19)		(1.95)		(1.72)
Other		(0.07)		0.79		(3.66)


Total		(1.49)%		12.32%		(43.68)%

Company's Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities for the years ended December 31, 2013 and 2012 are as follows (in thousands):


	2013		2012
Deferred tax assets:
Net operating loss carryforwards	$	21,901	$	1,666
Deferred revenue		23,171		33,250
Tax credit carryforwards		637		427
Purchased intangible assets		147		158
Stock-based compensation		768		269
Deferred rent		138		172
Other		231		232


Total deferred tax assets		46,993		36,174
Valuation allowance		(46,549)		(31,786)


Total deferred tax assets	$	444	$	4,388

Deferred tax liabilities:
Depreciation and amortization	$	(444)	$	(435)


Total deferred tax liabilities	$	(444)	$	(435)


Net deferred tax asset	$	-	$	3,953