Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2018 |
Income Tax Disclosure [Abstract] |
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Schedule of Income before Income Tax, Domestic and Foreign |
income before provision for income taxes and equity in losses of investee consists of the following (in thousands): | | | | | | | | | | | | | | Year ended December 31, | | 2018 | | 2017 | | 2016 | Domestic | $ | 171,658 |
| | $ | 123,696 |
| | $ | 118,871 |
| Foreign | 294,993 |
| | 241,103 |
| | 123,695 |
| Net income before provision for income taxes and equity in losses of investee | $ | 466,651 |
| | $ | 364,799 |
| | $ | 242,566 |
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Schedule of Components of Income Tax Expense (Benefit) |
The provision for (benefit from) income taxes consists of the following (in thousands): | | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2017 | | 2016 | Federal | | | | | | Current | $ | 35,788 |
| | $ | 91,214 |
| | $ | 40,235 |
| Deferred | (5,989 | ) | | 15,724 |
| | 24,794 |
| | 29,799 |
| | 106,938 |
| | 65,029 |
| State | | | | | | Current | 9,568 |
| | 2,580 |
| | 2,603 |
| Deferred | (3,274 | ) | | 2,677 |
| | 2,636 |
| | 6,294 |
| | 5,257 |
| | 5,239 |
| Foreign | | | | | | Current | 22,753 |
| | 15,285 |
| | 8,964 |
| Deferred | (1,123 | ) | | 2,682 |
| | (28,032 | ) | | 21,630 |
| | 17,967 |
| | (19,068 | ) | Provision for income taxes | $ | 57,723 |
| | $ | 130,162 |
| | $ | 51,200 |
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Schedule of Effective Income Tax Rate Reconciliation |
The differences between income taxes using the federal statutory income tax rate of 21% for 2018 and 35% for 2017 and 2016 and our effective tax rate are as follows: | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2017 | | 2016 | U.S. federal statutory income tax rate | 21.0 | % | | 35.0 | % | | 35.0 | % | State income taxes, net of federal tax benefit | 1.3 |
| | 1.4 |
| | 2.1 |
| U.S. tax on foreign earnings | 4.1 |
| | 1.5 |
| | 0.2 |
| Impact of U.S. Tax Cuts and Jobs Act (“TCJA”) | 2.1 |
| | 23.1 |
| | — |
| Impact of differences in foreign tax rates | (6.7 | ) | | (18.0 | ) | | (6.3 | ) | Impact of expiration of statute of limitations | (6.2 | ) | | — |
| | — |
| Stock-based compensation | (3.4 | ) | | (6.3 | ) | | 1.2 |
| Other items not individually material | 0.2 |
| | (1.0 | ) | | 1.8 |
| Valuation allowance release for Israel | — |
| | — |
| | (12.9 | ) | | 12.4 | % | | 35.7 | % | | 21.1 | % |
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Schedule of Deferred Tax Assets and Liabilities |
As of December 31, 2018 and 2017, the significant components of our deferred tax assets and liabilities are (in thousands): | | | | | | | | | | | | Year Ended December 31, | | | 2018 | | 2017 | Deferred tax assets: | | | | | Net operating loss and capital loss carryforwards | | $ | 25,410 |
| | $ | 24,971 |
| Reserves and accruals | | 24,769 |
| | 12,547 |
| Stock-based compensation | | 8,571 |
| | 10,074 |
| Deferred revenue | | 14,285 |
| | 10,811 |
| Net translation losses | | 1,158 |
| | 1,928 |
| Credit carryforwards | | 115 |
| | 792 |
| | | 74,308 |
| | 61,123 |
| Deferred tax liabilities: | | | | | Depreciation and amortization | | 8,320 |
| | 7,522 |
| Prepaid expenses | | 902 |
| | 751 |
| Unremitted foreign earnings | | 612 |
| | 3,305 |
| | | 9,834 |
| | 11,578 |
| Net deferred tax assets before valuation allowance | | 64,474 |
| | 49,545 |
| Valuation allowance | | (251 | ) | | (278 | ) | Net deferred tax assets | | $ | 64,223 |
| | $ | 49,267 |
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Schedule of Unrecognized Tax Benefits Rollforward |
The changes in the balance of gross unrecognized tax benefits, which exclude interest and penalties, for the year ended December 31, 2018, 2017 and 2016, are as follows (in thousands):
| | | | | Unrecognized tax benefit as of December 31, 2015 | $ | 39,413 |
| Tax positions related to current year: | | Additions for uncertain tax positions | 6,971 |
| Unrecognized tax benefit as of December 31, 2016 | 46,384 |
| Tax positions related to current year: | | Additions for uncertain tax positions | 1,819 |
| Tax positions related to prior year: | | Additions for uncertain tax positions | 1,809 |
| Decreases for uncertain tax positions | (826 | ) | Settlements with tax authorities | (1,527 | ) | Reductions due to lapse of applicable statute of limitations | (3 | ) | Unrecognized tax benefit as of December 31, 2017 | 47,656 |
| Tax positions related to current year: | | Additions for uncertain tax positions | 14,519 |
| Tax positions related to prior year: | | Additions for uncertain tax positions | 80 |
| Reductions due to lapse of applicable statute of limitations | (28,993 | ) | Unrecognized tax benefit as of December 31, 2018 | $ | 33,262 |
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