Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,
	2021		2020		2019
Current:
Federal	$	27,870	$	160	$	15,854
State	5,372		921		2,108
Foreign	8,406		13,197		30,670
	41,648		14,278		48,632
Deferred:
Federal	(19,266)		(18,266)		352,808
State	(769)		(556)		183
Foreign	17,406		15,269		(442,494)
	(2,629)		(3,553)		(89,503)
	$	39,019	$	10,725	$	(40,871)

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,
	2021		2020		2019
Income tax expense at U.S. federal statutory corporate tax rate	21	%	21	%	21	%
State income taxes, net of federal benefit	1		1		2
Foreign tax rate differential	(5)		(6)		(9)
Tax credit	(2)		(1)		(1)
Discrete tax benefit related to employee stock options	(3)		(7)		(4)
Discrete tax benefit related to tax return filings	(1)		(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
Other discrete tax events	—		—		(1)
Other	1		2		3
Income tax expense (benefit)	12	%	6	%	(25)	%

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, 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
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in prior periods	(280)
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods	100
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period	525
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations	(485)
Balance of reserve for income taxes as of December 31, 2021	$	13,812

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,
	2021		2020
Gross deferred tax assets:
Intangible asset in connection with change in tax structure	$	404,526	$	424,156
Stock-based compensation expense	15,279		13,294
Federal and state tax credit carryforwards	11,051		10,171
Inventory and revenue related	7,426		5,976
Bonuses, commissions, and other compensation	7,263		4,932
Depreciation	5,395		4,211
Foreign net operating losses	751		602
Other	9,023		4,342
Gross deferred tax assets	460,714		467,684
Valuation allowance	(8,188)		(8,568)
	$	452,526	$	459,116
Gross deferred tax liabilities:
GILTI tax basis differences in connection with change in tax structure	$	(327,725)	$	(339,364)
Net deferred taxes	$	124,801	$	119,752