Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of (Benefit) Provision for Income Taxes

Significant components of the (benefit) provision for income taxes are as follows (in thousands):



	December 31,
	2015			2014			2013
Current:
Federal	$	948		$	61		$	(565	)
State	399			(1,294		)	810
Foreign	41			69			18
Total current provision (benefit)	1,388			(1,164		)	263
Deferred:
Federal	(4,624		)	(5,267		)	(2,584		)
State	—			2,488			(1,635		)
Foreign	18			34			—
Total deferred benefit	(4,606		)	(2,745		)	(4,219		)
Benefit for income taxes	$	(3,218	)	$	(3,909	)	$	(3,956	)

Schedule of Income before (Benefit) Provision for Income Taxes

The Company’s (loss) income before (benefit) provision for income taxes was subject to taxes in the following jurisdictions for the following periods (in thousands):



	December 31,
	2015			2014			2013
United States	$	(9,480	)	$	(11,328	)	$	3,364
Foreign	183			345			70
(Loss) income before benefit for income taxes	$	(9,297	)	$	(10,983	)	$	3,434

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets as of December 31, 2015 and 2014 are shown below (in thousands).



	December 31,
	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	1,199		$	2,236
Intangible assets	3,574			3,366
Sale-leaseback, net	1,224			1,424
Allowance for returns and discounts	4,308			4,574
Stock based compensation	9,884			8,255
Tax credit carryforwards	2,341			2,060
Other, net	5,200			4,472
Total deferred tax assets	27,730			26,387
Valuation allowance for deferred tax assets	(3,087		)	(2,331		)
Total deferred tax assets, net of valuation allowance	24,643			24,056
Deferred tax liabilities:
Convertible Senior Notes	(9,474		)	(11,267		)
Intangible assets	(9,977		)	(12,939		)
Property, plant and equipment	(7,162		)	(6,424		)
Total deferred tax liabilities	(26,613		)	(30,630		)
Net deferred tax assets and liabilities	$	(1,970	)	$	(6,574	)

Reconciliation of Income Tax Computed at Federal Statutory Rate



	Year ended December 31,
	2015		2014		2013
Tax (benefit) expense at statutory tax rate	(3,254	)	(3,844	)	1,214
State (benefit) taxes, net of federal tax (benefit)	(235	)	(151	)	63
Permanent differences	157		70		(76	)
Federal and state research credits—current year	(722	)	(765	)	(1,046	)
Federal research credits - prior year	—		—		(527	)
(Release) accrual of uncertain tax positions	101		(21	)	369
Expiration of statutes for uncertain tax positions	—		(953	)	(3,452	)
Impact of change in federal and state tax rate on revaluing deferred tax assets	56		110		(581	)
Change in valuation allowance	756		2,331		—
Acquisition related adjustments	—		(485	)	—
Other	(77	)	(201	)	80
Benefit for income taxes	(3,218	)	(3,909	)	(3,956	)

Summary of Unrecognized Tax Benefits

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



	Year ended December 31,
	2015			2014			2013
Beginning balance	$	7,065		$	7,765		$	9,051
(Decreases) increases related to prior year tax positions	(12		)	(68		)	773
Increases related to current year tax positions	631			642			1,019
Decreases due to settlements	—			(42		)	—
Expiration of the statute of limitations for the assessment of taxes	—			(1,232		)	(3,078		)
Ending balance	$	7,684		$	7,065		$	7,765