LOGM 2017 Annual Report

8. Income Taxes The domestic and foreign components of income (loss) before provision for (benefit from) income taxes are as follows (in thousands): Years Ended December 31, 2015 2016 2017 Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,059 $(15,748) $(25,027) Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,459 18,956 13,050 Total income (loss) before provision for (benefit from) income taxes . . . . . . . $17,518 $ 3,208 $(11,977) The provision for (benefit from) income taxes is as follows (in thousands): Years Ended December 31, 2015 2016 2017 Current: Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,521 $ 1,264 $ 33,474 State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 647 3,701 Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,227 1,963 6,568 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,022 3,874 43,743 Deferred: Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,281) (2,705) (150,038) State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278 (428) 4,558 Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (59) (171) (9,763) Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,062) (3,304) (155,243) Total provision for (benefit from) income taxes . . . . . . . . . . . . . . . $ 2,960 $ 570 $(111,500) A reconciliation of the Company’s effective tax rate to the statutory federal income tax rate is as follows: Years Ended December 31, 2015 2016 2017 Statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0% 35.0% (35.0)% Change in valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 8.0 Impact of permanent differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 27.1 27.4 Non-deductible stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . 8.4 27.4 9.2 Non-deductible transaction related costs . . . . . . . . . . . . . . . . . . . . . . . . . . . — 82.1 19.5 Foreign tax rate differential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26.7) (165.3) (71.3) Research and development credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.3) (10.6) (36.4) State taxes, net of federal benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 0.4 (21.1) Impact of uncertain tax positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 18.6 29.3 Effect of U.S. Tax Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (714.9) Section 199 deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.1) (20.0) Excess benefit on stock compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (133.6) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.4) 3.2 7.9 Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.9% 17.8% (931.0)% The Company recorded a tax provision for income taxes of $3.0 million, $0.6 million and a benefit from income taxes of $111.5 million on profit before income taxes of $17.5 million, $3.2 million and a loss before income 75