INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Before Income Taxes and Components of Income Tax Provision

Income from before income taxes and the components of the income tax provision consisted of the following for the years ended December 31, 2019, 2018, and 2017 (in thousands):



	Year Ended December 31,
	2019			2018			2017
Income (loss) from operations before income taxes:
United States	$	4,311		$	(1,940	)	$	(4,811	)
Foreign	(1,786		)	(7,463		)	(8,611		)
Total income (loss) from operations before income taxes	$	2,525		$	(9,403	)	$	(13,422	)
Provision for (Benefit from) income taxes:
Current tax expense (benefit):
Federal	$	(4	)	$	(1	)	$	(4	)
State	58			59			59
Foreign benefit of net operating losses	(462		)	(206		)	(66		)
Other foreign	1,632			1,372			1,774
Total current tax expense	1,224			1,224			1,763
Deferred tax (benefit) expense:
Federal	—			—			(821		)
Other foreign	(6,300		)	47			(809		)
Total deferred tax (benefit) expense	(6,300		)	47			(1,630		)
Total provision for (benefit from) income taxes	$	(5,076	)	$	1,271		$	133

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2019 and 2018 (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	267,049		$	283,473
Allowances for bad debts	69			32
Difference in accounting for:
Revenues	2,651			3,666
Costs and expenses	19,400			17,033
Inventories	2,282			3,744
Acquired intangible assets	187			555
Long-term lease liabilities	7,605			—
Gross deferred tax assets	299,243			308,503
Valuation allowance	(281,568		)	(304,070		)
Deferred tax assets after valuation allowance	17,675			4,433
Deferred tax liabilities:
Difference in accounting for:
Revenues	(1,052		)	—
Costs and expenses	(1,527		)	(1,454		)
Acquired intangible assets	—			(709		)
Basis difference convertible notes	(326		)	(1,112		)
Right of use asset	(7,291		)	—
Gross deferred tax liabilities	(10,196		)	(3,275		)
Net deferred tax assets	$	7,479		$	1,158
Recorded as:
Long-term deferred tax assets, net	7,479			1,158
Long-term deferred tax liabilities, net	—			—
Net deferred tax assets	$	7,479		$	1,158

Reconciliation of Income Tax Provision to Statutory Rate

The following table sets forth a reconciliation of our income tax provision (benefit) to the statutory U.S. federal tax amount for the years ended December 31, 2019, 2018, and 2017:



	Year Ended December 31,
	2019			2018			2017
Statutory tax	$	530		$	(1,975	)	$	(4,698	)
Tax credits expired / (generated)	815			1,277			(1,646		)
Foreign operations	921			1,854			3,113
Change in uncertain tax positions	11,185			58			800
Non-deductible expenses and other	2,474			301			1,109
Change in valuation allowance	(21,001		)	(244		)	1,455
(Benefit from) provision for income taxes	$	(5,076	)	$	1,271		$	133

Reconciliation of Unrecognized Tax Benefits

The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2019, 2018, and 2017 (in thousands):



Unrecognized tax benefits at January 1, 2017	$	1,041
Increases for tax positions taken during a prior period	800
Unrecognized tax benefits at December 31, 2017	1,841
Decreases for tax positions taken during a prior period	(78		)
Unrecognized tax benefits at December 31, 2018	1,763
Increases for tax positions taken during a prior period	11,248
Unrecognized tax benefits at December 31, 2019	$	13,011