Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of (Benefit) Provision for Income Taxes

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



	December 31,
	2017			2016			2015
Current:
Federal	$	(615	)	$	(117	)	$	948
State	314			246			399
Foreign	57			84			41
Total current (benefit) provision	(244		)	213			1,388
Deferred:
Federal	131			(2,545		)	(4,624		)
State	238			(63		)	—
Foreign	4			4			18
Total deferred benefit	373			(2,604		)	(4,606		)
Provision (benefit) for income taxes	$	129		$	(2,391	)	$	(3,218	)

Schedule of Income before (Benefit) Provision for Income Taxes

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



	December 31,
	2017			2016			2015
United States	$	(8,198	)	$	(16,426	)	$	(9,480	)
Foreign	162			227			183
Loss before benefit for income taxes	$	(8,036	)	$	(16,199	)	$	(9,297	)

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and deferred tax liabilities as of December 31, 2017 and 2016 are shown below (in thousands):



	December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	3,924		$	3,255
Intangible assets	2,935			2,351
Sale-leaseback, net	628			888
Allowance for returns and discounts	5,358			4,043
Stock-based compensation	5,933			10,963
Tax credit carryforwards	5,247			3,430
Other, net	4,580			4,066
Total deferred tax assets	28,605			28,996
Valuation allowance for deferred tax assets	(15,204		)	(7,774		)
Total deferred tax assets, net of valuation allowance	13,401			21,222
Deferred tax liabilities:
Convertible Senior Notes	(3,633		)	(7,592		)
Intangible assets	(2,935		)	(7,557		)
Property, plant and equipment	(7,263		)	(6,131		)
Total deferred tax liabilities	(13,831		)	(21,280		)
Net deferred tax liabilities	$	(430	)	$	(58	)

Reconciliation of Income Tax Computed at Federal Statutory Rate



	Year ended December 31,
	2017			2016			2015
Tax benefit at statutory tax rate	$	(2,812	)	$	(5,775	)	$	(3,254	)
State tax benefits, net of federal tax benefit	(239		)	(390		)	(235		)
Permanent differences	327			129			157
Federal and state research credits—current year	(484		)	(979		)	(722		)
Accrual of uncertain tax positions	142			43			101
Stock-based compensation	(5,851		)	—			—
Impact of change in federal and state tax rate on revaluing deferred tax assets	3,357			(4		)	56
Change in valuation allowance	5,799			4,687			756
Other	(110		)	(102		)	(77		)
Provision (benefit) for income taxes	$	129		$	(2,391	)	$	(3,218	)

Summary of Unrecognized Tax Benefits

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



	Year ended December 31,
	2017		2016			2015
Beginning balance	$	8,604	$	7,684		$	7,065
Increases (decreases) related to prior year tax positions	10		(10		)	(12		)
Increases related to current year tax positions	951		773			631
Other	$	—	$	157		$	—
Ending balance	$	9,565	$	8,604		$	7,684