Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense are as follows:

	Year Ended December 31,
	2019			2018			2017
Current:
Federal	$	(27	)	$	4,423		$	6,020
State		88			1,038			507
Foreign		1,548			626			3,159
		1,609			6,087			9,686
Deferred:
Federal		(4,730	)		1,961			17,034
State		506			(73	)		643
Foreign		108			275			(470	)
		(4,116	)		2,163			17,207
Total income tax expense (benefit)	$	(2,507	)	$	8,250		$	26,893

Income before Tax

The income before tax is comprised of the following:

	Year Ended December 31,
	2019			2018		2017
Domestic operations	$	(7,087	)	$	49,089	$	57,079
Foreign operations	$	6,490		$	4,257	$	2,723

Income Before Provision for Income Taxes

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended December 31, 2019 and 2018, and 35% for years ended December 31, 2017 to income before provision for income taxes as follows:

	Year Ended December 31,
	2019			2018			2017
Federal income tax provision at statutory rate	$	(125	)	$	11,203		$	20,931
State taxes, net of federal effect		113			747			573
Foreign taxes, net of federal effect		(1,277	)		17			(238	)
Domestic manufacturing benefit		—			—			(1,569	)
Foreign Derived Intangible Income ("FDII") Deduction		(2,278	)		(2,217	)		—
Global Intangible Low-Taxes Income ("GILTI") inclusion		1,786			113			—
Non-deductible officer's compensation		826			526			—
Research & development tax credit		(2,126	)		(2,298	)		(1,559	)
Remeasurement of deferred tax balances, related to the Tax Act		—			(33	)		8,020
Transition tax on foreign earnings, related to the Tax Act		—			138			(106	)
Other		574			54			841
Provision (benefit) for income taxes	$	(2,507	)	$	8,250		$	26,893
Effective tax rate		420	%		15	%		45	%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are comprised of the following:

	December 31,
	2019			2018
Deferred Tax Assets:
Reserves and accruals	$	8,254		$	4,880
Deferred revenue		1,219			1,201
Share-based compensation		2,955			1,259
Tax credit carryforward		11,307			2,484
Net operating losses		6,008			1,692
Depreciation and amortization		7,151			4,298
Operating lease right-of-use assets (1)		4,965			—
Other		1,128			777
Gross deferred tax assets		42,987			16,591
Less: valuation allowance		(14,160	)		(3,172	)
Total deferred tax assets after valuation allowance		28,827			13,419
Deferred Tax Liabilities:
Depreciation and amortization		(89,286	)		(609	)
Operating lease liabilities (1)		(4,709	)		—
Other		(416	)		—
Gross deferred tax liabilities		(94,411	)		(609	)
Net deferred tax assets (liabilities)	$	(65,584	)	$	12,810

⁽¹⁾ As discussed in Note 7 to the Consolidated Financial Statements, in 2019, the Company adopted an updated accounting standard that resulted in the recognition of operating right-of-use assets and lease liabilities.  The Company adopted this standard using a transition method that does not require application to periods prior to adoption.  

Unrecognized Tax Benefits

The total amount of unrecognized tax benefits are as follows:

	December 31,
	2019			2018			2017
Balance, beginning of the period	$	5,528		$	4,880		$	4,827
Gross increases—tax positions in prior period		9,989			496			171
Gross decreases—tax positions in prior period		(932	)		(61	)		(362	)
Gross increases—current-period tax positions		558			213			244
Lapse of statute of limitations		—			—			—
Balance, end of the period	$	15,143		$	5,528		$	4,880