Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.6.0.2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Components of Income Tax Benefit (Provision)
The benefit (provision) for incomes taxes consists of the following: 
 
For the years ended December 31,
(In thousands)
2016
 
2015
 
2014
Current
 
 
 
 
 
Federal
$

 
$
430

 
$
225

State
(2,931
)
 
(2,157
)
 
247

Foreign
(2,438
)
 
(8,134
)
 
(1,514
)
 
(5,369
)
 
(9,861
)
 
(1,042
)
Deferred
 
 
 
 
 
Federal
25,739

 
109,286

 

State
10,657

 
12,327

 
(167
)
Foreign
25,088

 
1,923

 
1,185

 
61,484

 
123,536

 
1,018

Total, net
$
56,115

 
$
113,675

 
$
(24
)
Components of Deferred Income Tax Assets and Liabilities
Deferred income tax assets and liabilities as of December 31, 2016 and 2015 are comprised of the following: 
(In thousands)
December 31, 2016
 
December 31, 2015
Deferred income tax assets:
 
 
 
Federal net operating loss
$
76,792

 
$
71,658

State net operating loss
36,285

 
14,227

Foreign net operating loss
32,895

 
33,701

Research and development expense
3,246

 
5,138

Tax credits
20,894

 
7,388

Stock options
36,485

 
24,756

Accruals
8,306

 
7,086

Equity investments
7,011

 
4,420

Bad debts
14,283

 
38,809

Lease liability
3,233

 
7,022

Foreign credits
10,253

 

Available for sale securities
4,792

 

Other
7,795

 
7,104

Deferred income tax assets
262,270

 
221,309

Deferred income tax liabilities:
 
 
 
Intangible assets
(354,043
)
 
(386,588
)
Fixed assets
(13,710
)
 
(17,072
)
Other
(2,121
)
 
(1,538
)
Deferred income tax liabilities
(369,874
)
 
(405,198
)
Net deferred income tax liabilities
(107,604
)
 
(183,889
)
Valuation allowance
(55,415
)
 
(42,147
)
Net deferred income tax liabilities *
$
(163,019
)
 
$
(226,036
)
 
 
 
 
* The components of December 31, 2016 Net deferred income tax liability is presented on the Consolidated Balance Sheet as follows: $(165,331) within Deferred tax liabilities, net and $2,312 within Other assets.
 
 
 
Summary of Changes in Gross Unrecognized Income Tax Benefits
The following summarizes the changes in our gross unrecognized income tax benefits.
 
For the years ended December 31,
(In thousands)
2016
 
2015
 
2014
Unrecognized tax benefits at beginning of period
$
8,595

 
$
5,890

 
$
9,231

Gross increases – tax positions in prior period
1,443

 
955

 
524

Gross increases – tax positions in current period
18,472

 
2,543

 
193

Gross decreases – tax positions in prior period
(671
)
 
(176
)
 
(396
)
Lapse of Statute of Limitations
(294
)
 
(617
)
 
(472
)
Settlements

 

 
(3,190
)
Unrecognized tax benefits at end of period
$
27,545

 
$
8,595

 
$
5,890

Summary of Significant Elements Contributing to the Difference Between the Federal Statutory Rate and the Effective Tax Rate
The significant elements contributing to the difference between the federal statutory tax rate and the effective tax rate are as follows: 
 
For the years ended December 31,
 
2016
 
2015
 
2014
Federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes, net of federal benefit
5.2
 %
 
2.8
 %
 
2.5
 %
Foreign income tax
1.2
 %
 
(7.8
)%
 
(10.3
)%
Research and development tax credits
5.4
 %
 
 %
 
1.1
 %
Non-Deductible components of Convertible Debt
2.2
 %
 
(9.4
)%
 
(3.8
)%
Valuation allowance
9.5
 %
 
61.1
 %
 
(25.3
)%
Rate change effect
21.2
 %
 
 %
 
 %
Non-deductible foreign stock compensation
(1.9
)%
 
(0.7
)%
 
 %
Other
(8.7
)%
 
(1.0
)%
 
0.8
 %
Total
69.1
 %
 
80.0
 %
 
 %
Reconciliation of Losses Before Income Taxes Between U.S. and Foreign Jurisdictions
The following table reconciles our losses before income taxes between U.S. and foreign jurisdictions: 
  
For the years ended December 31,
(In thousands)
2016
 
2015
 
2014
Pre-tax income (loss):
 
 
 
 
 
U.S.
$
(92,175
)
 
$
(113,612
)
 
$
(84,075
)
Foreign
10,977

 
(30,091
)
 
(87,567
)
Total
$
(81,198
)
 
$
(143,703
)
 
$
(171,642
)