Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income Tax Expense (Benefit) Attributable to Income (Loss) From Operation

Income tax expense (benefit) from continuing operations for the years ended December 31, 2018, 2017 and 2016 is presented below (in thousands):



Year ended December 31, 2018	Current		Deferred			Total
Federal	$	—	$	(86	)	$	(86	)
State	744		(24		)	720
Foreign	78		1,325			1,403
	$	822	$	1,215		$	2,037



Year ended December 31, 2017	Current		Deferred			Total
Federal	$	—	$	(31	)	$	(31	)
State	540		8			548
Foreign	942		(973		)	(31		)
	$	1,482	$	(996	)	$	486



Year ended December 31, 2016	Current		Deferred			Total
Federal	$	—	$	32		$	32
State	329		5			334
Foreign	285		(43		)	242
	614		(6		)	608

Schedule of Difference in the Company's Expected Tax Expense (Benefit) as Computed by Applying the U.S. Federal Corporate Rate to Income Before Tax Expense (Benefit), and Actual Tax is Reconciled

The actual income tax expense (benefit) differs from the expected income tax expense (benefit) computed at the U.S. Federal statutory tax rate of 21% due to the following (in thousands):



	Year Ended December 31,
	2018			2017			2016
Tax expense (benefit) at federal statutory rate	$	(105,429	)	$	(85,445	)	$	(67,819	)

State income tax expense, net of federal benefit	(22,584		)	(11,432		)	(5,225		)
Foreign tax rate differential	14,976			23,179			17,109
Non-deductible equity based compensation expense	3,267			1,080			2,321
Windfall benefits from equity based compensation	(29,003		)	(24,168		)	—
Change in valuation allowance	119,370			24,209			53,467
Change in tax rate	197			71,919			—
Limitation on officer's compensation	5,283			—			—
Debt integration termination	9,236			—			—
Other	6,724			1,144			755
Net income tax expense	$	2,037		$	486		$	608

Schedule of Components of Income Tax Expense (Benefit) Determined by Tax Jurisdiction

The components of income before income tax expense (benefit) determined by tax jurisdiction, are as follows (in thousands):



	Year Ended December 31,
	2018			2017			2016
U.S.	$	(327,356	)	$	(143,800	)	$	(118,851	)
Foreign	(174,687		)	(100,328		)	(74,916		)
Total	$	(502,043	)	$	(244,128	)	$	(193,767	)

Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities for the periods presented are as follows (in thousands):



	December 31,
	2018			2017
Deferred tax assets:
Accounts receivable	$	2,400		$	1,814
Inventories	495			391
Operating loss carry-forwards	262,481			146,666
Equity based compensation expense	9,733			9,087
Intangibles	12,526			13,862
Accrued payroll	13,900			8,582
Accrued expenses and reserves	12,339			10,933
Charitable contributions	657			284
Deferred rent	90,868			48,936
Gross deferred tax assets	405,399			240,555
Less: Valuation allowance	(247,454		)	(178,488		)
Net deferred tax assets	157,945			62,067
Deferred tax liabilities:
Prepaid expenses	(3,030		)	(1,825		)
Capitalized technology	(15,427		)	(11,339		)
Property and equipment	(73,189		)	(34,986		)
Goodwill	(133		)	(110		)
Convertible debt	(66,166		)	(12,580		)
Other	—			(12		)
Total deferred tax liabilities	(157,945		)	(60,852		)
Net deferred tax assets (liabilities)	—			1,215
Non-current net deferred tax assets (liabilities)	$	—		$	1,215