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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following is a geographical breakdown of income (loss) before the provision for (benefit from) income taxes:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (In thousands)
Domestic | $ | 19,889 |  |  | $ | 1,471 |  |  | $ | 51,089 |
Foreign | (20,768 | ) |  | (3,419 | ) |  | (4,845 | )
Income (loss) before provision for (benefit from) income taxes | $ | (879 | ) |  | $ | (1,948 | ) |  | $ | 46,244 |
The provision for (benefit from) income taxes consists of the following:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (In thousands)
Current: |  |  |  |  |
Federal | $ | 2,430 |  |  | $ | 6,724 |  |  | $ | 13,840 |
State | 1,852 |  |  | 1,323 |  |  | 2,475 |
Foreign | 745 |  |  | 46 |  |  | 203 |
Total current income taxes | 5,027 |  |  | 8,093 |  |  | 16,518 |
Deferred: |  |  |  |  |
Federal | (16,118 | ) |  | (3,378 | ) |  | 846 |
State | (2,612 | ) |  | (1,802 | ) |  | (379 | )
Foreign | (7,781 | ) |  | (5,464 | ) |  | (1,501 | )
Total deferred income taxes | (26,511 | ) |  | (10,644 | ) |  | (1,034 | )
Total provision for (benefit from) income taxes | $ | (21,484 | ) |  | $ | (2,551 | ) |  | $ | 15,484 |
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,
| 2017 |  | 2016 |  | 2015
| (In thousands)
U.S. federal tax provision at statutory rate | $ | (308 | ) |  | $ | (682 | ) |  | $ | 16,181 |
State taxes | 19 |  |  | (311 | ) |  | 1,365 |
Non-deductible expenses | 1,373 |  |  | 1,212 |  |  | 551 |
Acquisition costs | — |  |  | 845 |  |  | 239 |
Share-based compensation expense | 39 |  |  | 1,941 |  |  | 748 |
Research tax credits | (3,233 | ) |  | (2,075 | ) |  | (1,324 | )
Domestic production deduction | (621 | ) |  | (890 | ) |  | (1,133 | )
Gain on investment | — |  |  | — |  |  | (1,205 | )
Tax audit settlement | — |  |  | (2,499 | ) |  | — |
Foreign rate differential | 938 |  |  | (154 | ) |  | 123 |
Stock option tax benefit | (5,926 | ) |  | — |  |  | — |
One-time Impact of the Tax Act | (13,391 | ) |  | — |  |  | — |
Other | (374 | ) |  | 62 |  |  | (61 | )
Total provision for (benefit from) income taxes | $ | (21,484 | ) |  | $ | (2,551 | ) |  | $ | 15,484 |
Significant components of the Company's deferred tax assets (liabilities) are as follows:
| December 31, 2017 |  | December 31, 2016
| (In thousands)
Deferred tax assets (liabilities): |  |  |
Deferred revenue | $ | 6,345 |  |  | $ | 5,857 |
Stock compensation | 4,460 |  |  | 6,451 |
Inventory related items | 2,441 |  |  | 2,915 |
Tax credit carry forwards | 9,349 |  |  | 4,871 |
Reserves and accruals | 3,960 |  |  | 4,675 |
Loss carry forwards | 8,643 |  |  | 8,077 |
Other, net | 1,307 |  |  | 847 |
Total net deferred tax assets | 36,505 |  |  | 33,693 |
Intangibles | (36,780 | ) |  | (57,427 | )
Depreciation and amortization | (14,338 | ) |  | (20,071 | )
Prepaid expenses | (4,512 | ) |  | (3,746 | )
Total deferred tax liabilities | (55,630 | ) |  | (81,244 | )
Net deferred tax liabilities | $ | (19,125 | ) |  | $ | (47,551 | )
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, 2017, no valuation allowances have been recorded in any jurisdiction. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly impacts the future ongoing U.S. corporate income tax by, among things, lowering the U.S. corporate income tax rates and implementing a territorial tax system. At December 31, 2017, the Company has not completed the accounting for the tax effects of enactment of the Tax Act; however, the Company made a reasonable estimate of the effects on the existing deferred tax balances and the one-time transition tax. The reduction of the U.S. corporate tax rate required the Company to revalue the U.S. deferred tax assets and liabilities to the newly enacted federal rate of 21%. This resulted in a one-time benefit of $13.4 million in the fourth quarter of 2017. As part of the transition to the new territorial tax system, the Tax Act imposes a one-time tax on a deemed repatriation of historical earnings of foreign subsidiaries. Based on the current evaluation of the Company’s operations, no repatriation tax charge is anticipated as the Company is in an earnings deficit position for foreign subsidiaries. The Company will continue to assess the provision for income taxes as future guidance is issued, but does not currently anticipate significant revisions will be necessary. Any such revisions will be treated in accordance with the measurement period guidance outlined in Staff Accounting Bulletin No. 118. As of December 31, 2017, the Company has $6.6 million of federal net operating loss carryforwards expiring 2038 and $6.1 million of state net operating loss carryforwards expiring at various dates beginning 2023. For income tax purposes, the Company has federal and California research tax credits carryforwards of $2.4 million and $8.8 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. 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, 2017, the Company has not made a provision for U.S. federal income, withholding, and state income taxes on the outside basis difference related to certain foreign subsidiaries because earnings are intended to be indefinitely reinvested in operations outside the U.S. At December 31, 2017, the Company has not completed the accounting for the tax effects resulting from the enactment of the Act; however, the Company made a reasonable estimate of the effects. The Company is continuing to evaluate its plans for reinvestment under the Act, including its plans for reinvestment or repatriation of unremitted foreign earnings. Any revisions will be treated in accordance with the measurement period guidance outlined in Staff Accounting Bulletin No. 118. 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 such as the United States, Germany, Italy, Netherlands and the United Kingdom. With few exceptions, as of December 31, 2017, the Company was no longer subject to U.S., state, and foreign examination for years before 2014, 2013, and 2014, respectively. The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the three years ended December 31, 2017 is as follows:
| (In thousands)
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 |
Increases related to tax positions taken during a prior period | 503 |
Decreases related to tax positions taken during the prior period | (1,782 | )
Increases related to tax positions taken during the current period | 805 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (401 | )
Year Ended December 31, 2017 | $ | 10,741 |
As of December 31, 2017 the total amount of gross unrecognized tax benefits, if realized, would decrease the Company's tax expense by approximately $10.7 million. The Company recognizes interest and/or penalties related to uncertain tax positions in operating expenses accruing $0.3 million, $0.5 million, and $0.1 million for fiscal years 2017, 2016, and 2015 respectively. Accrued interest and penalties are included within other long-term liabilities on the consolidated balance sheets. The combined amount of cumulative accrued interest and penalties was approximately $1.4 million, $1.1 million, and $0.6 million as of fiscal years 2017, 2016, and 2015 respectively. The Company does not believe there will be any significant 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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