Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Constituents of Provision for Income Taxes

Income tax expense consisted of the following (in thousands):

	Year Ended December 31,
	2019			2018			2017
Current:
Federal	$	15,854		$	10,624		$	78,152
State	2,108			(879		)	2,687
Foreign	30,670			6,307			7,624
	48,632			16,052			88,463
Deferred:
Federal	352,808			(1,271		)	1,569
State	183			554			(639		)
Foreign	(442,494		)	(28		)	359
	(89,503		)	(745		)	1,289
	$	(40,871	)	$	15,307		$	89,752

Reconciliation of the United States Federal Statutory Corporate Tax Rate to the Company's Effective Tax Rate or Income Tax Provision

A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows:

	Year Ended December 31,
	2019		2018		2017
Income tax expense at U.S. federal statutory corporate tax rate	21	%	21	%	35	%
State income taxes, net of federal benefit	2		1		—
Foreign tax rate differential	(9	)	(9	)	(27	)
Tax credit	(1	)	—		(1	)
Discrete tax benefit related to employee stock options	(4	)	(4	)	(14	)
Discrete tax expense (benefit) related to Tax Act	—		(3	)	36
Discrete tax expense related to write-down of deferred tax assets	—		—		5
Discrete tax expense related to migration of acquired IP	18		—		—
Discrete tax (benefit) related to change in tax structure	(268	)	—		—
Discrete tax expense related to GILTI impact of change in tax structure	214		—		—
Other discrete tax events	(1	)	—		(1	)
Other	3		1		1
Income tax expense	(25	)%	7	%	34	%

Schedule of Change in Accounting Policy

The change in this accounting policy impacted the Company's 2019 reported results as follows (in thousands):

Statement of Operations
	Year Ended December 31, 2019
	As reported under the new accounting policy			As computed under the previous accounting policy			Effect of change
Income before income tax expense	$	162,994		$	162,994		$	—
Income tax expense (benefit)	(40,871		)	(393,317		)	352,446
Net income	$	203,865		$	556,311		$	(352,446	)
Net income per weighted-average common and common-equivalent share:
Basic	$	1.19		$	3.25		$	(2.06	)
Diluted	$	1.16		$	3.17		$	(2.01	)

Balance Sheet
	December 31, 2019
	As reported under the new accounting policy		As computed under the previous accounting policy		Effect of change
Deferred tax assets	$	449,519	$	469,621	$	(20,102	)
Deferred tax liabilities	$	332,344	$	—	$	332,344

Statement of Shareholders' Equity
	Year Ended December 31, 2019
	As reported under the new accounting policy		As computed under the previous accounting policy		Effect of change
Retained earnings	$	753,268	$	1,105,714	$	(352,446	)

Changes in the Reserve for Income Taxes, Excluding Interest and Penalties

The changes in the reserve for income taxes, excluding gross interest and penalties, were as follows (in thousands):

Balance of reserve for income taxes as of December 31, 2017	$	6,749
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods	69
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period	1,499
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations	(1,023		)
Balance of reserve for income taxes as of December 31, 2018	7,294
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods	199
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period	5,259
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations	(1,161		)
Balance of reserve for income taxes as of December 31, 2019	$	11,591

Constituents of Deferred Tax Assets

Deferred tax assets and liabilities, presented on a gross basis by jurisdiction, consisted of the following (in thousands):

	December 31,
	2019			2018
Non-current gross deferred tax assets:
Intangible asset in connection with change in tax structure	$	437,500		$	—
Stock-based compensation expense	15,042			13,818
Federal and state tax credit carryforwards	8,491			7,395
Foreign net operating losses	4,286			—
Depreciation	3,522			2,475
Inventory and revenue related	2,934			3,233
Bonuses, commissions, and other compensation	1,609			5,470
Other	3,550			2,425
Gross non-current deferred tax assets	476,934			34,816
Valuation allowance	(7,312		)	(6,112		)
	$	469,622		$	28,704
Non-current gross deferred tax liabilities:
GILTI tax basis differences in connection with change in tax structure	$	(350,000	)	$	—
Other GILTI tax basis differences	(2,446		)	—
Nondeductible intangible assets	—			(44		)
Other	—			(962		)
	$	(352,446	)	$	(1,006	)