Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income Before Tax

The components of income before provision for income taxes were as follows for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	2019		2018			2017
U.S.	$	24,253	$	(27,379	)	$	92,588
Foreign	508,228		370,468			221,604
Income before provision for income taxes	$	532,481	$	343,089		$	314,192

Schedule of Provision for Income Tax

The provision for income taxes consisted of the following for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	2019			2018			2017
Current tax (benefit) provision:
Federal	$	(22,704	)	$	(29,982	)	$	41,090
State	3,835			8,085			6,336
Foreign	71,286			64,274			51,244
Deferred tax (benefit) provision:
Federal	(13,987		)	5,954			(24,136		)
State	(12,212		)	701			21,689
Foreign	4,968			(7,140		)	(4,367		)
Change in valuation allowance	22,164			2,824			(430		)
Total	$	53,350		$	44,716		$	91,426

Schedule of Difference Between Effective and Statutory

The Company’s effective tax rate differed from the U.S. federal statutory tax rate as follows for the years ended December 31, 2019, 2018 and 2017:

	2019		2018		2017
U.S. federal income tax rate	21.0	%	21.0	%	35.0	%
State taxes	1.0		1.2		1.5
Share-based compensation	0.3		1.0		3.7
U.S. federal, state and foreign research and development credits	(6.0	)	(7.6	)	(7.0	)
Foreign earnings	(6.1	)	(6.0	)	(7.9	)
Domestic production activities deduction	—		—		(0.7	)
Impact of TCJA, net	—		(0.8	)	6.4
Impact of acquisition-related uncertain tax position	—		—		(2.9	)
Release of uncertain tax position reserve	(5.9	)	(1.9	)	(0.5	)
Intercompany sale of intellectual property	1.9		3.3		—
Valuation allowance	4.2		0.8		—
Other	(0.4	)	2.0		1.5
	10.0	%	13.0	%	29.1	%

Net Deferred Tax and Valuation Allowance

The components of the net deferred tax assets and liabilities and the related valuation allowance as of December 31, 2019 and 2018 were as follows (in thousands):

	2019			2018
Accrued bonus	$	25,487		$	24,093
Deferred revenue	3,874			4,188
Deferred rent	—			11,245
Operating lease liability	147,375			—
Stock-based compensation	20,606			20,345
NOLs	25,851			15,743
Unrealized losses	1,529			1,039
Tax credit carryforwards	87,305			70,235
License income	—			2,245
Convertible senior notes interest	22,506			4,724
Other	12,501			11,759
Deferred tax assets	347,034			165,616
Depreciation and amortization	(16,896		)	(23,912		)
Acquired intangible assets	(51,758		)	(45,773		)
Operating lease ROU asset	(132,949		)	—
Deferred commissions	(14,843		)	(14,232		)
Internal-use software development costs capitalized	(57,201		)	(63,586		)
Deferred tax liabilities	(273,647		)	(147,503		)
Valuation allowance	(26,046		)	(2,824		)
Net deferred tax assets	$	47,341		$	15,289

Schedule of Operating Loss Carryforwards

The table below summarizes the Company's NOL and tax credit carryforwards in federal, state and foreign jurisdictions as of December 31, 2019 and 2018 (in thousands, except for years):

	2019		2018		Expirations at Various Dates Through:
NOL carryforwards:
Federal	$	87,500	$	52,500	2037
State	20,500		20,500		2039
Foreign	11,600		8,500		—
Federal and state research and development tax credit and other credit carryforwards	88,570		88,200		2034

Unrecognized Tax Benefits

The following is a roll forward of the Company’s unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	2019			2018			2017
Balance at beginning of year	$	64,892		$	85,845		$	69,117
Gross increases – tax positions of prior periods	74			2,704			2,692
Gross increases – current period tax positions	2,006			3,021			27,163
Gross decreases – tax positions of prior periods	(5,201		)	(15,287		)	(277		)
Gross decreases – lapse of applicable statute of limitations	(28,672		)	(6,186		)	(12,850		)
Gross decreases – settlements	(5,740		)	(5,205		)	—
Balance at end of year	$	27,359		$	64,892		$	85,845