Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of (Benefit) Provision for Income Taxes

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



	December 31,
	2018			2017			2016
Current:
Federal	$	—		$	(615	)	$	(117	)
State	755			314			246
Foreign	6,575			57			84
Total current provision (benefit)	7,330			(244		)	213
Deferred:
Federal	(9,970		)	131			(2,545		)
State	(7,944		)	238			(63		)
Foreign	(215		)	4			4
Total deferred (benefit) provision	(18,129		)	373			(2,604		)
(Benefit) provision for income taxes	$	(10,799	)	$	129		$	(2,391	)

Schedule of Income before (Benefit) Provision for Income Taxes

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



	December 31,
	2018		2017			2016
United States	$	46,592	$	(8,198	)	$	(16,426	)
Foreign	16,792		162			227
Income (loss) before income taxes	$	63,384	$	(8,036	)	$	(16,199	)

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and deferred tax liabilities as of December 31, 2018 and 2017 are shown below (in thousands):



	December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	711		$	3,924
Intangible assets	3,502			2,935
Sale-leaseback, net	617			628
Allowance for returns and discounts	4,541			5,358
Stock-based compensation	5,333			5,933
Tax credit carryforwards	12,246			5,247
Other, net	6,883			4,580
Total deferred tax assets	33,833			28,605
Valuation allowance for deferred tax assets	(1,830		)	(15,204		)
Total deferred tax assets, net of valuation allowance	32,003			13,401
Deferred tax liabilities:
Convertible Senior Notes	(636		)	(3,633		)
Intangible assets	(2,165		)	(2,935		)
Property, plant and equipment	(7,010		)	(7,263		)
Total deferred tax liabilities	(9,811		)	(13,831		)
Net deferred tax assets (liabilities)	$	22,192		$	(430	)

Reconciliation of Income Tax Computed at Federal Statutory Rate



	Year ended December 31,
	2018			2017			2016
Tax expense (benefit) at statutory tax rate	$	13,311		$	(2,812	)	$	(5,775	)
State tax (benefits), net of federal tax	1,526			(239		)	(390		)
Permanent differences	635			327			129
Federal and state research credits—current year	(3,628		)	(484		)	(979		)
Accrual of uncertain tax positions	—			142			43
Stock-based compensation	(9,286		)	(5,851		)	—
Impact of change in federal and state tax rate on revaluing deferred tax assets	—			3,357			(4		)
Change in valuation allowance	(13,374		)	5,799			4,687
Foreign Derived Intangible Income Deduction (FDII)	(786		)	—			—
Other	803			(110		)	(102		)
(Benefit) provision for income taxes	$	(10,799	)	$	129		$	(2,391	)

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,
	2018			2017		2016
Beginning balance	$	9,565		$	8,604	$	7,684
(Decreases) increases related to prior year tax positions	(558		)	10		(10		)
Increases related to current year tax positions	6,238			951		773
Other	—			—		157
Ending balance	$	15,245		$	9,565	$	8,604