Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Income Tax Disclosure [Abstract] |
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Summary of Net Income (Loss) Before Income Taxes |
Net income (loss) before income taxes for the years ended December 31, 2021, 2020 and 2019, includes the following components (in thousands): | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2021 | | 2020 | | 2019 | U.S. | $ | 193,161 | | | $ | (118,296) | | | $ | 149,797 | | Foreign | (146,850) | | | (17,410) | | | (23,563) | | Net income (loss) before income tax | $ | 46,311 | | | $ | (135,706) | | | $ | 126,234 | |
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Summary of Provision for Benefit from Income Taxes |
Provision for (benefit from) income taxes for the years ended December 31, 2021, 2020 and 2019 consist of the following (in thousands) | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2021 | | 2020 | | 2019 | Current: | | | | | | Federal | $ | 64,585 | | | $ | 20,162 | | | $ | 23,703 | | State | 10,234 | | | 4,087 | | | 1,888 | | Foreign | 1,914 | | | 4,027 | | | 568 | | | 76,733 | | | 28,276 | | | 26,159 | | Deferred: | | | | | | Federal | (52,162) | | | (29,235) | | | (720) | | State | (2,394) | | | (4,800) | | | (99) | | Foreign | (11,204) | | | (4,013) | | | (18,146) | | | (65,760) | | | (38,048) | | | (18,965) | | Total provision for (benefit from) income taxes. | $ | 10,973 | | | $ | (9,772) | | | $ | 7,194 | |
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Summary of Reconciliation of Federal Statutory Income Tax Rate to the Effective Income Tax Rate |
The reconciliation of federal statutory income tax rate to the effective income tax rate is as follows (in thousands): | | | | | | | | | | | | | | | | | | | Years ended December 31, | | 2021 | | 2020 | | 2019 | Tax provision (benefit) at U.S. federal statutory rate | $ | 9,725 | | | $ | (28,498) | | | $ | 26,509 | | State income taxes, net of federal benefit | 1,866 | | | (1,137) | | | 1,412 | | Foreign income taxed at different rates | 10,563 | | | 8,710 | | | 2,887 | | Change in foreign deferred tax rate | — | | | (6,038) | | | (17,143) | | Stock-based compensation | (8,807) | | | 10,347 | | | 1,671 | | Foreign-derived intangible income | (10,477) | | | (3,518) | | | (8,600) | | Research and development credits | (6,193) | | | (2,561) | | | (1,025) | | Extinguishments of acquisition-related contingent consideration | — | | | 12,237 | | | — | | Foreign Income Inclusion | (2,622) | | | — | | | — | | Change in valuation allowance | 15,905 | | | — | | | — | | Other | 1,013 | | | 686 | | | 1,483 | | Total provision for (benefit from) income taxes | $ | 10,973 | | | $ | (9,772) | | | $ | 7,194 | |
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Summary of Current and Deferred Tax Assets and Liabilities |
The following summarizes the current and deferred tax assets and liabilities (in thousands): | | | | | | | | | | | | | As of December 31, | | 2021 | | 2020 | Deferred tax assets: | | | | Accrued expenses and reserves | $ | 6,374 | | | $ | 4,757 | | Stock-based compensation | 14,651 | | | 1,955 | | Tax credit carryforwards | 4,835 | | | 2,526 | | Net operating loss | 12,042 | | | 3,787 | | Identified intangibles | — | | | 8,996 | | Operating lease liability | 16,622 | | | 20,551 | | Other comprehensive income | 16,251 | | | — | | Foreign tax deduction | 12,363 | | | — | | Other | 2,247 | | | (256) | | Valuation allowance | (18,842) | | | (531) | | Total deferred tax assets | 66,543 | | | 41,785 | | Deferred tax liabilities: |
| | | Depreciation and amortization | (5,433) | | | (6,857) | | Identified intangibles | (6,049) | | | — | | Operating lease right-of-use assets | (16,622) | | | (20,345) | | Total deferred tax liabilities | (28,104) | | | (27,202) | | Net deferred tax assets | 38,439 | | | 14,583 | |
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Summary of Activity Related to the Gross Unrecognized Tax Benefits |
The following table summarizes the activity related to the gross unrecognized tax benefits (in thousands): | | | | | | | | | | | | | | | | | | | As of December 31, | | 2021 | | 2020 | | 2019 | Balance at beginning of year | $ | 14,401 | | | $ | 6,646 | | | $ | 2,858 | | Increases related to prior year positions | 5,027 | | | 4,681 | | | 2,377 | | Increases related to current year positions | 2,631 | | | 3,498 | | | 1,581 | | Decreases related to lapse of statutes | (172) | | | (424) | | | (170) | | Decreases related to settlements | (3,431) | | | — | | | — | | Balance at end of year | $ | 18,456 | | | $ | 14,401 | | | $ | 6,646 | |
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