INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Components of Income (Loss) before Income Taxes

The components of income before income taxes are as follows (in thousands):

	Year ended December 31,
	2018		2017		2016
United States	$	13,565	$	100,260	$	69,595
Foreign		50,746		49,277		(997	)
Income before income tax	$	64,311	$	149,537	$	68,598

Components of Income Tax Expense

The components of the income tax expense are as follows (in thousands):

	Year ended December 31,
	2018			2017			2016
Current income tax expense:
Federal	$	(9,097	)	$	(5,817	)	$	(4,485	)
State		(511	)		(54	)		(47	)
Foreign		(8,677	)		(15,406	)		(12,902	)
		(18,285	)		(21,277	)		(17,434	)
Deferred income tax (expense) benefit:
Federal		12,622			(24,425	)		(2,683	)
State		611			(23	)		(503	)
Foreign		(419	)		73			92
		12,814			(24,375	)		(3,094	)
Income tax expense	$	(5,471	)	$	(45,652	)	$	(20,528	)

Reconciliation of the Statutory U.S. Federal Tax Rate to the Effective Tax Rate

Reconciliation of the statutory U.S. federal tax rate to the Company's effective tax rate is as follows:

	Year ended December 31,
	2018			2017			2016
Statutory U.S. federal income tax rate		21.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		(0.2	)%		0.0	%		0.5	%
Effect of foreign operations		(4.7	)%		(7.1	)%		0.9	%
Accruals and reserves		0.0	%		0.1	%		3.2	%
Nondeductible employee compensation		1.7	%		1.5	%		1.5	%
Research tax credits		(2.7	)%		(0.7	)%		(1.3	)%
Change in valuation allowance		0.0	%		(4.1	)%		(9.7	)%
Stock based compensation		(2.7	)%		(1.9	)%		0.0	%
U.S. Tax Cuts and Jobs Act		(3.5	)%		7.7	%		0.0	%
U.S. International Tax (Sub F, GILTI, FDII)		(1.2	)%		0.0	%		0.0	%
Other		0.8	%		0.0	%		(0.2	)%
Effective tax rate		8.5	%		30.5	%		29.9	%

Tax Loss and Tax Credit Carryforwards

The following table summarizes Company tax loss and tax credit carry forwards for tax return purposes at December 31, 2018 (in thousands):

	Related Tax Deduction	Tax Benefit		Expiration Date
Tax credit carry forwards:
State research tax credits	n/a	$	2,893	2026 to 2033
Total credit carry forwards	n/a	$	2,893

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company's net deferred tax assets and liabilities are as follows (in thousands):

	December 31,
	2018			2017
Deferred tax asset:
Capitalized technology license	$	553		$	804
Capitalized research expenditures		4,710			3,719
Accruals and reserves		2,890			962
Retirement plan		9,570			7,125
Deferred revenue		12,028			206
Tax credit carry forwards		2,895			21,562
Stock-based compensation		1,701			1,819
Other		47			59
		34,394			36,256
Valuation allowance		(2,893	)		(2,460	)
Deferred tax assets		31,501			33,796
Deferred tax liability:
Accruals and reserves		(7,124	)		(6,774	)
Deferred tax liabilities		(7,124	)		(6,774	)
Net deferred tax assets	$	24,377		$	27,022