Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Constituents of Provision for Income Taxes

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

	Year Ended December 31,
	2020		2019		2018
Current:
Federal	$	160	$	15,854	$	10,624
State	921		2,108		(879)
Foreign	13,197		30,670		6,307
	14,278		48,632		16,052
Deferred:
Federal	(18,266)		352,808		(1,271)
State	(556)		183		554
Foreign	15,269		(442,494)		(28)
	(3,553)		(89,503)		(745)
	$	10,725	$	(40,871)	$	15,307

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 (benefit), or effective tax rate, was as follows:

	Year Ended December 31,
	2020		2019		2018
Income tax expense at U.S. federal statutory corporate tax rate	21	%	21	%	21	%
State income taxes, net of federal benefit	1		2		1
Foreign tax rate differential	(6)		(9)		(9)
Tax credit	(1)		(1)		—
Discrete tax benefit related to employee stock options	(7)		(4)		(4)
Discrete tax expense (benefit) related to tax return filings	(5)		—		—
Discrete tax expense related to German withholding	1		—		—
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		—
Discrete tax expense (benefit) related to Tax Act	—		—		(3)
Other discrete tax events	—		(1)		—
Other	2		3		1
Income tax expense (benefit)	6	%	(25)	%	7	%

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, 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
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods	162
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period	3,383
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations	(1,184)
Balance of reserve for income taxes as of December 31, 2020	$	13,952

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,
	2020		2019
Non-current gross deferred tax assets:
Intangible asset in connection with change in tax structure	$	424,156	$	437,500
Stock-based compensation expense	13,294		15,042
Federal and state tax credit carryforwards	10,171		8,491
Inventory and revenue related	5,976		2,934
Bonuses, commissions, and other compensation	4,932		1,609
Depreciation	4,211		3,522
Foreign net operating losses	602		4,286
Other	4,342		3,550
Gross non-current deferred tax assets	467,684		476,934
Valuation allowance	(8,568)		(7,312)
	$	459,116	$	469,622
Non-current gross deferred tax liabilities:
GILTI tax basis differences in connection with change in tax structure	$	(339,325)	$	(350,000)
Other GILTI tax basis differences	(39)		(2,446)
	$	(339,364)	$	(352,446)