Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense (Benefit)

Acacia’s provision for income taxes consists of the following for the years ended December 31, (in thousands):



	2014			2013			2012

Current:
Federal	$	—		$	—		$	—
State taxes	289			113			281
Foreign taxes	5,359			4,405			11,890
Total current	5,648			4,518			12,171
Deferred:
Federal	(1,867		)	(26,151		)	10,085
State taxes	131			(325		)	(196		)
Total deferred	(1,736		)	(26,476		)	9,889
Provision for (benefit from) income taxes	$	3,912		$	(21,958	)	$	22,060

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities consist of the following at December 31, 2014 and 2013 (in thousands):



	2014			2013

Deferred tax assets:
Net operating loss and capital loss carryforwards and credits	$	59,427		$	34,679
Stock compensation	1,800			3,052
Basis of investments in affiliates	1,437			867
Accrued liabilities and other	409			387
Unrealized loss on short-term investments	92			337
State taxes	26			18
Total deferred tax assets	63,191			39,340
Valuation allowance	(35,927		)	(7,585		)
Total deferred tax assets, net of valuation allowance	27,264			31,755

Deferred tax liabilities:
Fixed assets and intangibles	(27,157		)	(33,378		)
Other	(107		)	(112		)
Total deferred tax liabilities	(27,264		)	(33,490		)

Net deferred tax assets (liabilities)	$	—		$	(1,735	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate and the effective income tax rate is as follows:



	2014		2013		2012

Statutory federal tax rate - (benefit) expense	(35	)%	(35	)%	35	%
State income and foreign taxes, net of federal tax effect	9	%	5	%	15	%
Foreign tax credit	(8	)%	(6	)%	(15	)%
Noncontrolling interests in operating subsidiaries	—	%	1	%	—	%
Nondeductible permanent items	1	%	2	%	5	%
Expired net operating loss carryforwards	—	%	2	%	—	%
Valuation allowance	39	%	4	%	(13	)%
	6	%	(27	)%	27	%

Summary of Valuation Allowance [Table Text Block]

At December 31, 2013, the Company recorded valuation allowances for certain tax attribute carryforwards and other deferred tax assets due to uncertainty regarding future realizability, as follows:



	2013

Capital loss carryforwards	$	1,562
Net operating loss carryforwards	1,281
Foreign tax credits	4,405
Unrealized losses on short-term investments and other deferred tax assets	337
Total valuation allowance	$	7,585

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

ctivity related to the gross unrecognized tax benefits for the periods presented was as follows (in thousands):



Balance at January 1, 2012	$	85
Additions based on tax positions related to the current year	—
Additions for tax positions related to prior years	772
Additions resulting from the acquisition of ADAPTIX	1,270
Reductions	—
Balance at December 31, 2012	$	2,127
Balance at December 31, 2013	$	2,127
Balance at December 31, 2014	$	2,127