Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income before Income Tax, Domestic and Foreign |
United States and foreign income (loss) from operations before income taxes was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2016 |
|
2015 |
|
2014 |
United States |
$ |
(119,549 |
) |
|
$ |
(9,949 |
) |
|
$ |
(51,809 |
) |
Foreign |
(38,294 |
) |
|
9,444 |
|
|
5,189 |
|
Loss before income taxes |
$ |
(157,843 |
) |
|
$ |
(505 |
) |
|
$ |
(46,620 |
) |
|
| Schedule of Components of Income Tax Expense (Benefit) |
The income tax provision based on the income (loss) from operations was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2016 |
|
2015 |
|
2014 |
Current provision: |
|
|
|
|
|
Federal |
$ |
47 |
|
|
$ |
932 |
|
|
$ |
2,724 |
|
State |
227 |
|
|
355 |
|
|
114 |
|
Foreign |
15,184 |
|
|
6,786 |
|
|
12,804 |
|
Total current provision |
15,458 |
|
|
8,073 |
|
|
15,642 |
|
Deferred provision (benefit): |
|
|
|
|
|
Federal |
(53,395 |
) |
|
(2,691 |
) |
|
(451 |
) |
State |
(2,070 |
) |
|
— |
|
|
37 |
|
Foreign |
(4,904 |
) |
|
(3,761 |
) |
|
(4,654 |
) |
Total deferred provision (benefit) |
(60,369 |
) |
|
(6,452 |
) |
|
(5,068 |
) |
Total income tax provision (benefit) |
$ |
(44,911 |
) |
|
$ |
1,621 |
|
|
$ |
10,574 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
Income taxes differ from the amounts computed by applying the federal income tax rate of 35%. A reconciliation of this difference is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2016 |
|
2015 |
|
2014 |
Income tax benefit at federal statutory rate |
$ |
(55,245 |
) |
|
$ |
(177 |
) |
|
$ |
(16,317 |
) |
State income tax, net of federal benefit |
(1,898 |
) |
|
418 |
|
|
4 |
|
Permanent items |
1,781 |
|
|
9,123 |
|
|
(153 |
) |
Change in fair value of financial instruments |
(8,836 |
) |
|
(3,847 |
) |
|
3,374 |
|
Goodwill impairment |
12,321 |
|
|
— |
|
|
— |
|
Sound-recording settlements |
8,556 |
|
|
— |
|
|
— |
|
Stock-based compensation |
229 |
|
|
375 |
|
|
1,575 |
|
Tax credits |
(590 |
) |
|
(586 |
) |
|
(626 |
) |
Other |
2,977 |
|
|
746 |
|
|
(1,376 |
) |
Uncertain tax positions |
3,858 |
|
|
708 |
|
|
2,597 |
|
Withholding taxes |
4,732 |
|
|
3,431 |
|
|
3,386 |
|
Rate differential |
(2,158 |
) |
|
(3,200 |
) |
|
(2,050 |
) |
Change in enacted tax rate |
173 |
|
|
(1,371 |
) |
|
— |
|
Change in valuation allowance |
(10,811 |
) |
|
(3,999 |
) |
|
20,160 |
|
Income tax provision (benefit) |
$ |
(44,911 |
) |
|
$ |
1,621 |
|
|
$ |
10,574 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
2016 |
|
2015 |
Deferred tax assets: |
|
|
|
Intangible assets and goodwill |
$ |
20,196 |
|
|
$ |
7,624 |
|
Allowances and reserves |
5,816 |
|
|
2,925 |
|
Accrued liabilities |
8,793 |
|
|
8,398 |
|
Inventories |
1,066 |
|
|
567 |
|
Investments in affiliates |
— |
|
|
443 |
|
Stock-based compensation |
6,977 |
|
|
4,527 |
|
Tax credits |
4,006 |
|
|
4,714 |
|
Net operating losses |
68,489 |
|
|
38,923 |
|
Other |
3,304 |
|
|
2,589 |
|
Total deferred tax assets |
118,647 |
|
|
70,710 |
|
Less: valuation allowance |
(43,269 |
) |
|
(53,199 |
) |
Net deferred tax assets |
$ |
75,378 |
|
|
$ |
17,511 |
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
Property, plant and equipment |
$ |
(14,972 |
) |
|
$ |
(2,756 |
) |
Intangible assets |
(37,590 |
) |
|
(28,240 |
) |
Investments in affiliates |
(50,831 |
) |
|
— |
|
Debt costs |
(4,288 |
) |
|
(4,421 |
) |
Other |
(854 |
) |
|
(3,715 |
) |
Total deferred tax liabilities |
(108,535 |
) |
|
(39,132 |
) |
Net deferred tax liabilities |
$ |
(33,157 |
) |
|
$ |
(21,621 |
) |
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
The following table summarizes the changes to unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
2014 |
Balance at beginning of year |
$ |
4,637 |
|
|
$ |
4,237 |
|
|
$ |
2,831 |
|
Additions from business combinations |
3,492 |
|
|
— |
|
|
— |
|
Increase to prior year positions |
(34 |
) |
|
— |
|
|
— |
|
Reversal of prior tax positions |
(147 |
) |
|
— |
|
|
(1,795 |
) |
Additions based on tax positions related to current year |
3,100 |
|
|
400 |
|
|
3,201 |
|
Balance at end of year |
$ |
11,048 |
|
|
$ |
4,637 |
|
|
$ |
4,237 |
|
|
| Summary of Valuation Allowance |
The following table summarizes the changes in the valuation allowance balance for the years ended December 31, 2016, 2015 and 2014 (in thousands):
|
|
|
|
|
|
Amount |
Balance at December 31, 2013 |
$ |
50,782 |
|
Increase in valuation allowance |
22,877 |
|
Balance at December 31, 2014 |
73,659 |
|
Acquired valuation allowance from business combination |
(1,400 |
) |
Decrease in valuation allowance |
(19,060 |
) |
Balance at December 31, 2015 |
53,199 |
|
Decrease in valuation allowance |
(9,930 |
) |
Balance at December 31, 2016 |
$ |
43,269 |
|
|