Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Tax Provision

Loss before income tax:	Year ended December 31,
(in thousands)	2020		2019		2018
United States	$	(42,905)	$	1,769	$	(19,780)
International	16,688		(8,365)		2,832
Loss before income taxes	$	(26,217)	$	(6,596)	$	(16,948)

Provision for Income Taxes

Provision for (benefit from) income taxes:	Year ended December 31,
(in thousands)	2020		2019		2018
Current:
Federal	$	124	$	(180)	$	(305)
State	93		108		116
International	2,103		1,525		2,958
Deferred:
International	734		(2,125)		1,318
Total provision for (benefit from) income taxes	$	3,054	$	(672)	$	4,087

Effective tax rate (12) % 10  % (24) %

Reconciliation of Provision for Income Taxes

The difference between the tax provision at the statutory federal income tax rate and the provision for (benefit from) income tax as a percentage of loss before income taxes (effective tax rate) for each period was as follows:

	Year ended December 31,
	2020		2019		2018
Statutory U.S. federal income tax rate	21	%	21	%	21	%
Increase (reduction) in rate resulting from:
Differential in rates on foreign earnings	(11)	%	(37)	%	(25)	%
Change in valuation allowance	(16)	%	14	%	(9)	%
Change in liabilities for uncertain tax positions	—	%	6	%	1	%
Non-deductible stock-based compensation	(2)	%	(8)	%	(8)	%
Permanent differences	(2)	%	11	%	(6)	%
Adjustments related to tax positions taken during prior years	—	%	6	%	(1)	%
Other	(2)	%	(3)	%	3	%
Effective tax rate	(12)	%	10	%	(24)	%

Components of Deferred Tax Assets and Liabilities

The components of deferred taxes included in the Consolidated Balance Sheets are as follows:

	December 31,
(in thousands)	2020		2019
Deferred tax assets:
Reserves and accruals	$	21,823	$	20,622
Net operating loss carryforwards	39,733		33,811
Research and development credit carryforwards	38,179		36,914
Deferred stock-based compensation	1,202		1,675
Intangibles	7,838		8,224
Operating lease liabilities	7,822		8,892
Capitalized research and development expenses	10,805		10,897
Other	442		—
Gross deferred tax assets	127,844		121,035
Valuation allowance	(99,585)		(95,518)
Gross deferred tax assets after valuation allowance	28,259		25,517
Deferred tax liabilities:
Depreciation	(6,399)		(1,272)
Convertible notes	(4,708)		(6,275)
Operating lease right-of-use assets	(6,529)		(7,076)
Other	—		(319)
Gross deferred tax liabilities	(17,636)		(14,942)
Net deferred tax assets	$	10,623	$	10,575

Activities Related to Valuation Allowance

The following table summarizes the activities related to the Company’s valuation allowance:

	Year ended December 31,
(in thousands)	2020		2019		2018
Balance at beginning of period	$	95,518	$	77,144	$	77,756
Additions	6,690		23,929		928
Deductions	(2,623)		(5,555)		(1,540)
Balance at end of period	$	99,585	$	95,518	$	77,144

Activities Related to Gross Unrecognized Tax Benefits

The following table summarizes the activities related to the Company’s gross unrecognized tax benefits:

	Year ended December 31,
(in millions)	2020		2019		2018
Balance at beginning of period	$	17.0	$	18.0	$	18.8
Increase in balance related to tax positions taken during current year	0.3		0.2		1.0
Decrease in balance as a result of a lapse of the applicable statutes of limitations	—		(0.1)		(0.1)
Decrease in balance due to settlement with tax authorities	—		—		(1.6)
Increase in balance related to tax positions taken during prior years	0.3		—		0.2
Decrease in balance related to tax positions taken during prior years	—		(1.1)		(0.3)
Balance at end of period	$	17.6	$	17.0	$	18.0