Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Loss Before Income Tax Provision (Benefit)

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

	Years Ended December 31,
	2013			2012			2011
United States	$	(28,622	)	$	(134,384	)	$	(105,841	)
Foreign	15,300			16,338			15,580
	$	(13,322	)	$	(118,046	)	$	(90,261	)

Expense Benefit for Income Taxes

The expense (benefit) for income taxes is comprised of (in thousands):

	Years Ended December 31,
	2013			2012			2011
Current tax provision (benefit):
Federal	$	195		$	(357	)	$	19,908
State	382			130			580
Foreign	6,487			6,804			4,964
	7,064			6,577			25,452
Deferred tax expense (benefit):
Federal	1,100			(1,448		)	43,948
State	(817		)	92			10,987
Foreign	(1,748		)	(321		)	1,172
	(1,465		)	(1,677		)	56,107
Income tax provision	$	5,599		$	4,900		$	81,559

Components of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are classified as current or noncurrent according to the classification of the related asset or liability. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands):

	December 31,
	2013			2012
Deferred tax assets:
Reserves and allowances not currently deductible for tax purposes	$	16,953		$	15,617
Basis difference related to fixed assets	13,137			10,711
Compensation and benefits	6,878			3,808
Basis difference for inventory valuation	1,593			2,502
Compensatory stock options and rights	3,925			5,238
Deferred revenue and other	459			101
Operating loss carryforwards	94,639			105,748
Tax credit carryforwards	11,584			6,024
Correlative effects of global income allocations	—			363
Federal impact of state taxes	—			808
Basis difference related to intangible assets with a definite life	18,363			6,165
Total deferred tax assets	167,531			157,085
Valuation allowance for deferred tax assets	(158,747		)	(151,097		)
Deferred tax assets, net of valuation allowance	$	8,784		$	5,988
Deferred tax liabilities:
State taxes, net of federal income tax benefit	1			(33		)
Prepaid expenses	(970		)	(1,102		)
Deferred revenue	—			(330		)
Other	(84		)	(69		)
Basis difference related to intangible assets with an indefinite life	(34,284		)	(32,834		)
Total deferred tax liabilities	(35,337		)	(34,368		)
Net deferred tax liabilities	$	(26,553	)	$	(28,380	)
Net deferred tax assets (liabilities) are shown on the accompanying consolidated balance sheets as follows:
Current deferred tax assets	$	6,419		$	4,170
Non-current deferred tax assets	2,299			1,910
Current deferred tax liabilities	—			(927		)
Non-current deferred tax liabilities	(35,271		)	(33,533		)
Net deferred tax liabilities	$	(26,553	)	$	(28,380	)

Credit Carryforward Expiry

At December 31, 2013, the Company has federal and state income tax credit carryforwards of $7,571,000 and $9,400,000 respectively, which will expire at various dates beginning in 2020. Such credit carryforwards expire as follows (in thousands):

U.S. foreign tax credit	$	4,102	2020 - 2023
U.S. research tax credit	$	3,455	2030 - 2033
U.S. business tax credits	$	14	2030 - 2033
State investment tax credits	$	872	Do not expire
State research tax credits	$	8,528	Do not expire

Net Operating Losses Expiry

The Company has recorded a deferred tax asset reflecting the benefit of operating loss carryforwards. The net operating losses expire as follows (in thousands):

U.S. loss carryforwards	$	252,927	2031 - 2033
State loss carryforwards	$	176,106	2014 - 2033
Foreign loss carryforwards	$	178	Do not expire

Reconciliation of Effective Tax Rate on Income or Loss and Statutory Tax Rate

A reconciliation of the effective tax rate on income or loss and the statutory tax rate is as follows:

	Years Ended December 31,
	2013		2012		2011
Statutory U.S. tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of U.S. tax benefit	0.9	%	(0.8	)%	(0.8	)%
Federal and State tax credits, net of U.S. tax benefit	22.6	%	—	%	—	%
Expenses with no tax benefit	(15.3	)%	(0.9	)%	0.2	%
Foreign income taxed at other than U.S. statutory rate	(5.1	)%	2.0	%	(1.0	)%
Effect of foreign rate changes	(4.2	)%	—	%	(0.5	)%
Foreign tax credit	9.4	%	(1.2	)%	—	%
Basis differences of intangibles with an indefinite life	(4.1	)%	1.3	%	(1.0	)%
Release of prepaid taxes on intercompany profit	—	%	—	%	(24.0	)%
Change in deferred tax valuation allowance	(76.8	)%	(37.7	)%	(98.6	)%
Reversal of previously accrued taxes	—	%	0.1	%	—	%
Accrual for interest and income taxes related to uncertain tax positions	(0.1	)%	0.8	%	(0.6	)%
Other	(4.3	)%	(2.8	)%	0.9	%
Effective tax rate	(42.0	)%	(4.2	)%	(90.4	)%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2013			2012			2011
Balance at January 1	$	7,064		$	9,875		$	9,121
Additions based on tax positions related to the current year	4,853			432			830
Additions for tax positions of prior years	545			96			370
Reductions for tax positions of prior years	(538		)	(24		)	(39		)
Settlement of tax audits	—			(768		)	—
Reductions due to lapsed statute of limitations	(73		)	(2,547		)	(407		)
Balance at December 31	$	11,851		$	7,064		$	9,875

Major Jurisdictions No Longer Subject to Income Tax Examinations by Tax Authorities

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is generally no longer subject to income tax examinations by tax authorities in its major jurisdictions as follows:

Major Tax Jurisdiction	Years No Longer Subject to Audit
U.S. federal	2008 and prior
California (U.S.)	2008 and prior
Canada	2007 and prior
Japan	2007 and prior
South Korea	2008 and prior
United Kingdom	2009 and prior