Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| 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, |
|
2017 |
|
2016 |
|
2015 |
United States |
$ |
(336,278 |
) |
|
$ |
(119,549 |
) |
|
$ |
(9,949 |
) |
Foreign |
(25,723 |
) |
|
(38,294 |
) |
|
9,444 |
|
Loss before income taxes |
$ |
(362,001 |
) |
|
$ |
(157,843 |
) |
|
$ |
(505 |
) |
|
| 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, |
|
2017 |
|
2016 |
|
2015 |
Current provision: |
|
|
|
|
|
Federal |
$ |
(323 |
) |
|
$ |
47 |
|
|
$ |
932 |
|
State |
(136 |
) |
|
227 |
|
|
355 |
|
Foreign |
12,485 |
|
|
15,184 |
|
|
6,786 |
|
Total current provision |
$ |
12,026 |
|
|
$ |
15,458 |
|
|
$ |
8,073 |
|
Deferred provision (benefit): |
|
|
|
|
|
Federal |
$ |
(9,173 |
) |
|
$ |
(53,395 |
) |
|
$ |
(2,691 |
) |
State |
(60 |
) |
|
(2,070 |
) |
|
— |
|
Foreign |
(7,680 |
) |
|
(4,904 |
) |
|
(3,761 |
) |
Total deferred provision (benefit) |
(16,913 |
) |
|
(60,369 |
) |
|
(6,452 |
) |
Total income tax provision (benefit) |
$ |
(4,887 |
) |
|
$ |
(44,911 |
) |
|
$ |
1,621 |
|
|
| 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, |
|
2017 |
|
2016 |
|
2015 |
Income tax benefit at federal statutory rate |
$ |
(126,700 |
) |
|
$ |
(55,245 |
) |
|
$ |
(177 |
) |
State income tax, net of federal benefit |
(272 |
) |
|
(1,898 |
) |
|
418 |
|
Permanent items |
3,623 |
|
|
1,781 |
|
|
9,123 |
|
Change in fair value of financial instruments |
(1,102 |
) |
|
(8,836 |
) |
|
(3,847 |
) |
Goodwill impairment |
55,016 |
|
|
12,321 |
|
|
— |
|
Sound-recording settlements |
— |
|
|
8,556 |
|
|
— |
|
Stock-based compensation |
2,660 |
|
|
229 |
|
|
375 |
|
Tax credits |
(116 |
) |
|
(590 |
) |
|
(586 |
) |
Other |
1,608 |
|
|
2,977 |
|
|
746 |
|
Uncertain tax positions |
(420 |
) |
|
3,858 |
|
|
708 |
|
Withholding taxes |
5,090 |
|
|
4,732 |
|
|
3,431 |
|
Rate differential |
(12,187 |
) |
|
(2,158 |
) |
|
(3,200 |
) |
Change in enacted tax rate |
28,431 |
|
|
173 |
|
|
(1,371 |
) |
Change in valuation allowance |
39,482 |
|
|
(10,811 |
) |
|
(3,999 |
) |
Income tax provision (benefit) |
$ |
(4,887 |
) |
|
$ |
(44,911 |
) |
|
$ |
1,621 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
2017 |
|
2016 |
Deferred tax assets: |
|
|
|
Intangible assets and goodwill |
$ |
15,272 |
|
|
$ |
20,196 |
|
Allowances and reserves |
3,973 |
|
|
5,816 |
|
Accrued liabilities |
5,135 |
|
|
8,793 |
|
Inventories |
1,307 |
|
|
1,066 |
|
Investments in affiliates |
— |
|
|
— |
|
Stock-based compensation |
5,043 |
|
|
6,977 |
|
Tax credits |
3,393 |
|
|
4,006 |
|
Net operating losses |
98,249 |
|
|
68,489 |
|
Other |
1,893 |
|
|
3,304 |
|
Total deferred tax assets |
134,265 |
|
|
118,647 |
|
Less: valuation allowance |
(85,393 |
) |
|
(43,269 |
) |
Net deferred tax assets |
$ |
48,872 |
|
|
$ |
75,378 |
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
Property, plant and equipment |
$ |
(11,345 |
) |
|
$ |
(14,972 |
) |
Intangible assets |
(21,170 |
) |
|
(37,590 |
) |
Investments in affiliates |
(28,530 |
) |
|
(50,831 |
) |
Debt costs |
(2,696 |
) |
|
(4,288 |
) |
Other |
(1,378 |
) |
|
(854 |
) |
Total deferred tax liabilities |
(65,119 |
) |
|
(108,535 |
) |
Net deferred tax liabilities |
$ |
(16,247 |
) |
|
$ |
(33,157 |
) |
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
The following table summarizes the changes to unrecognized tax benefits for the years ended December 31, 2017, 2016 and 2015 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
Balance at beginning of year |
$ |
11,048 |
|
|
$ |
4,637 |
|
|
$ |
4,237 |
|
Additions from business combinations |
— |
|
|
3,492 |
|
|
— |
|
Increase to prior year positions |
— |
|
|
(34 |
) |
|
— |
|
Reversal of prior tax positions |
(3,045 |
) |
|
(147 |
) |
|
— |
|
Additions based on tax positions related to current year |
725 |
|
|
3,100 |
|
|
400 |
|
Balance at end of year |
$ |
8,728 |
|
|
$ |
11,048 |
|
|
$ |
4,637 |
|
|
| Summary of Valuation Allowance |
The following table summarizes the changes in the valuation allowance balance for the years ended December 31, 2017, 2016 and 2015 (in thousands):
|
|
|
|
|
|
Amount |
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 |
|
Increase in valuation allowance |
42,124 |
|
Balance at December 31, 2017 |
$ |
85,393 |
|
|