Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Income before Income Tax, Domestic and Foreign

The following are the domestic and foreign components of the Company’s loss before income taxes for the years ended December 31, 2015, 2014, and 2013:



	Year Ended
	December 31, 2015			December 31, 2014			December 31, 2013

	(in thousands)
Domestic	$	15,723		$	(19,081	)	$	(9,535	)
International	(19,862		)	580			533
Loss before income taxes	$	(4,139	)	$	(18,501	)	$	(9,002	)

Schedule of Components of Income Tax Expense (Benefit)

The following are the components of the provision (benefit) for income taxes for the years ended December 31, 2015, 2014, and 2013:



	Year Ended
	December 31, 2015			December 31, 2014			December 31, 2013

	(in thousands)
Current:
Federal	$	196		$	—		$	—
State	90			16			58
Foreign	367			308			189
Total current provision	653			324			247
Deferred:
Federal	—			(10		)	9
State	1			(1		)	1
Foreign	(5,215		)	(141		)	(10		)
Total deferred benefit	(5,214		)	(152		)	—
Total provision (benefit) for income taxes	$	(4,561	)	$	172		$	247

Schedule of Effective Income Tax Rate Reconciliation

Set forth below is a reconciliation of the components that caused the Company’s provision (benefit) for income taxes to differ from amounts computed by applying the U.S. Federal statutory rate of 34.0% for the years ended December 31, 2015, 2014, and 2013:



	Year Ended
	December 31, 2015		December 31, 2014		December 31, 2013
U.S. federal statutory income tax rate	34.0	%	34.0	%	34.0	%
State income taxes, net of federal benefit	(1.4	)%	(0.1	)%	(0.4	)%
Foreign income at other than U.S. rates	(31.0	)%	0.8	%	—	%
Stock-based compensation expense	(31.5	)%	(4.4	)%	(10.0	)%
Meals and entertainment	(14.2	)%	(1.7	)%	(1.3	)%
Acquisition and related items	(8.6	)%	(0.1	)%	—	%
Non-deductible gifts	(0.8	)%	(0.1	)%	(0.2	)%
Research and development tax credits	42.3	%	4.7	%	5.6	%
Tax effect of intercompany financing	11.2	%	—	%	—	%
Other permanent items	(0.5	)%	(1.6	)%	(0.5	)%
Provision to return adjustments	(9.4	)%	(0.2	)%	—	%
Change in valuation allowance	120.1	%	(32.2	)%	(29.9	)%
Effective income tax rate	110.2	%	(0.9	)%	(2.7	)%

Schedule of Deferred Tax Assets and Liabilities

Set forth below are the tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014:



	December 31, 2015			December 31, 2014

	(in thousands)
Deferred Tax Assets:
Accrued liabilities	$	1,777		$	649
Stock-based compensation	7,737			6,401
Net operating loss carryovers	18,609			23,241
Research tax credit carryovers	7,931			4,596
Other	1,926			1,357
Total deferred tax assets	37,980			36,244
Less valuation allowance	(29,255		)	(32,481		)
Deferred tax assets, net of valuation allowance	8,725			3,763
Deferred Tax Liabilities:
Fixed assets	(2,630		)	(777		)
Intangible assets	(12,198		)	(3,036		)
Other	—			—
Total deferred tax liabilities	(14,828		)	(3,813		)
Net deferred tax liability	$	(6,103	)	$	(50	)

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

The following table summarizes the activity related to the unrecognized tax benefits (in thousands):



	Amount
	(in thousands)
Balance at January 1, 2013	$	1,067
Increases related to current year tax positions	408
Decreases related to prior year tax positions	(21		)
Balance at December 31, 2013	1,454
Increases related to current year tax positions	679
Decreases related to prior year tax positions	(2		)
Balance as of December 31, 2014	2,131
Increases related to current year tax positions	2,194
Decreases related to prior year tax positions	—
Balance as of December 31, 2015	$	4,325