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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following is a geographical breakdown of income before the provision for (benefit from) income taxes:
| Year Ended
| December 31, 2016 |  | December 31, 2015 |  | December 31, 2014
| (In thousands)
Domestic | $ | 1,471 |  |  | $ | 51,089 |  |  | $ | 48,327 |
Foreign | (3,419 | ) |  | (4,845 | ) |  | 177 |
Income before provision for (benefit from) income taxes | $ | (1,948 | ) |  | $ | 46,244 |  |  | $ | 48,504 |
The provision for (benefit from) income taxes consists of the following:
| Year Ended
| December 31, 2016 |  | December 31, 2015 |  | December 31, 2014
| (In thousands)
Current: |  |  |  |  |
Federal | $ | 6,724 |  |  | $ | 13,840 |  |  | $ | 14,063 |
State | 1,323 |  |  | 2,475 |  |  | 2,274 |
Foreign | 46 |  |  | 203 |  |  | 192 |
Total current income taxes | 8,093 |  |  | 16,518 |  |  | 16,529 |
Deferred: |  |  |  |  |
Federal | (3,378 | ) |  | 846 |  |  | 1,603 |
State | (1,802 | ) |  | (379 | ) |  | 84 |
Foreign | (5,464 | ) |  | (1,501 | ) |  | (230 | )
Total deferred income taxes | (10,644 | ) |  | (1,034 | ) |  | 1,457 |
Total provision for (benefit from) income taxes | $ | (2,551 | ) |  | $ | 15,484 |  |  | $ | 17,986 |
The provision for (benefit from) income taxes differs from the amount computed by applying the statutory federal tax rate as follows:
| Year Ended
| December 31, 2016 |  | December 31, 2015 |  | December 31, 2014
| (In thousands)
U.S. federal tax provision at statutory rate | $ | (682 | ) |  | $ | 16,181 |  |  | $ | 16,998 |
State taxes | (311 | ) |  | 1,365 |  |  | 1,533 |
Non-deductible expenses | 1,212 |  |  | 551 |  |  | 809 |
Acquisition costs | 845 |  |  | 239 |  |  | 229 |
Share-based compensation expense | 1,941 |  |  | 748 |  |  | 461 |
Research tax credits | (2,075 | ) |  | (1,324 | ) |  | (818 | )
Domestic production deduction | (890 | ) |  | (1,133 | ) |  | (1,127 | )
Gain on investment | — |  |  | (1,205 | ) |  | — |
Tax audit settlement | (2,499 | ) |  | — |  |  | — |
Other | (92 | ) |  | 62 |  |  | (99 | )
Total provision for (benefit from) income taxes | $ | (2,551 | ) |  | $ | 15,484 |  |  | $ | 17,986 |
Significant components of the Company's deferred tax assets (liabilities) are as follows:
| December 31, 2016 |  | December 31, 2015
| (In thousands)
Deferred tax assets (liabilities): |  |  |
Deferred revenue | $ | 5,857 |  |  | $ | 14,020 |
Stock compensation | 6,451 |  |  | 6,034 |
Inventory related items | 2,915 |  |  | 2,541 |
Tax credit carry forwards | 4,871 |  |  | 2,579 |
Reserves and accruals | 929 |  |  | — |
Loss carry forwards | 8,077 |  |  | 667 |
Other, net | 847 |  |  | 697 |
Total net deferred tax assets | 29,947 |  |  | 26,538 |
Intangibles | (57,427 | ) |  | (28,213 | )
Depreciation and amortization | (20,071 | ) |  | (17,185 | )
Reserves and accruals | — |  |  | (601 | )
Other, net | — |  |  | — |
Total deferred tax liabilities | (77,498 | ) |  | (45,999 | )
Net deferred tax liabilities | $ | (47,551 | ) |  | $ | (19,461 | )
Deferred income tax assets (liabilities) are provided for temporary differences that will result in future tax deductions or future taxable income, as well as the future benefit of tax credit carry forwards. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. On the basis of this evaluation, as of December 31, 2016, no valuation allowances have been recorded in any jurisdiction. As of December 31, 2016, the Company has an immaterial amount of state net operating loss carryforwards available for income tax purposes. For income tax purposes, the Company has federal and California research tax credits carryforwards of $1.7 million and $7.2 million, respectively. Federal research tax credit carry forwards from prior years will begin to expire in 2035. California credits are available indefinitely to reduce cash taxes otherwise payable. Pursuant to the requirements of ASC 718, the Company does not include unrealized stock option attributes as components of our gross deferred tax assets. The tax effected amount of gross unrealized net operating loss and business tax credit carry forwards excluded under ASC 718 for the year ended December 31, 2016 is $3.0 million. In general, it is the Company's practice and intention to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of December 31, 2016, the Company has not made a provision for U.S. federal income and state income taxes on accumulated and current earnings of $2.5 million related to certain foreign subsidiaries because these earnings are intended to be indefinitely reinvested in operations outside the U.S. If the Company expects to distribute those earnings in the form of dividends or otherwise, the Company would be subject to U.S. and state income taxes reported as a component of income tax expense, in the amount of $1.0 million. This amount may be reduced by any foreign tax credits available at the time of repatriation. The Company files income tax returns in the United States and various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including major jurisdictions as the United States, California, the United Kingdom and Germany. In 2012, the Company concluded audits by the IRS and the California Franchise Tax Board for years 2008 and 2009. However, all of the net operating loss and research credit carryforwards that may be used in future years are subject to adjustment, if and when utilized. As such the Company's U.S. federal and California tax years remain open from 1996 and 1992, respectively. During fiscal 2016, the IRS and the Company settled all outstanding items related to the audit of the Company's federal income tax returns for the fiscal years ended December 31, 2014. The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the three years ended December 31, 2016 is as follows:
| (In thousands)
Year Ended December 31, 2013 | 7,974 |
Increases related to tax positions taken during a prior period | 63 |
Decreases related to tax positions taken during the prior period | (89 | )
Increases related to tax positions taken during the current period | 801 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (264 | )
Year Ended December 31, 2014 | 8,485 |
Increases related to tax positions taken during a prior period | 37 |
Decreases related to tax positions taken during the prior period | (895 | )
Increases related to tax positions taken during the current period | 1,807 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (284 | )
Year Ended December 31, 2015 | 9,150 |
Increases related to tax positions taken during a prior period | 244 |
Decreases related to tax positions taken during the prior period | (1,980 | )
Increases related to tax positions taken during the current period | 6,724 |
Decreases related to settlements | (2,178 | )
Decreases related to expiration of statute of limitations | (344 | )
Year Ended December 31, 2016 | $ | 11,616 |
As of December 31, 2016 the total amount of gross unrecognized tax benefits, if realized, would decrease the Company's tax expense by approximately $7.6 million. The Company recognizes interest and/or penalties related to uncertain tax positions in operating expenses, which for 2016 was immaterial. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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