Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income (loss) Before Income Taxes

For financial reporting purposes, income (loss) before income taxes includes the following components (in thousands):


	Years Ended December 31,
	2021		2020		2019
United States	$	69,817	$	19,405	$	(16,317)
Foreign	105,248		79,221		88,527
Total	$	175,065	$	98,626	$	72,210

Summary of Income Tax Expense (Benefit)

The expense (benefit) for income taxes consists of the following (in thousands):


	Years Ended December 31,
	2021		2020		2019
Federal
Current	$	3,994	$	(2,683)	$	3,738
Deferred	6,067		(3,477)		(25,150)
Total	10,061		(6,160)		(21,412)
State
Current	7,592		2,514		590
Deferred	(1,498)		(1,758)		342
Total	6,094		756		932
Foreign
Current	31,955		22,786		22,960
Deferred	(836)		8,584		2,668
Total	31,119		31,370		25,628
Total	$	47,274	$	25,966	$	5,148

Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations

Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands):


	Years Ended December 31,
	2021		2020		2019
Tax expense at federal rate of 21%	$	36,764	$	20,711	$	15,164
State income taxes, net of federal benefit	4,816		321		1,227
Change in valuation allowance	1,228		2,459		(12,760)
Foreign tax rate differential	(5,376)		(1,809)		(2,535)
Unrecognized tax benefit increase (decrease)	858		(4,405)		898
Tax effect of foreign operations	16,151		11,373		6,698
Tax benefit of research & development	(4,123)		(2,173)		(2,506)
Performance-based compensation	(1,887)		(2,624)		(560)

Other	(1,157)		2,113		(478)
Income tax provision	$	47,274	$	25,966	$	5,148

Summary of Deferred Tax Assets and Liabilities

The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands):


	December 31,
	2021		2020
Deferred income tax assets:
Net operating loss carryforwards	$	18,826	$	20,347
Tax credits	19,316		40,188
Compensation	17,133		18,731
Deferred revenue	16,333		19,169
Operating lease	10,236		10,162
Other	9,988		9,051
Gross deferred income tax assets	91,832		117,648
Less: valuation allowance	(11,324)		(10,112)
Net deferred income tax assets	$	80,508	$	107,536
Deferred income tax liabilities:
Depreciation and amortization	$	(41,465)	$	(48,967)
Operating lease right-of-use asset	(8,791)		(7,650)
Deferred revenue	(15,596)		(33,947)
Total deferred income tax liabilities	(65,852)		(90,564)
Net deferred income taxes	$	14,656	$	16,972
Deferred income taxes / liabilities included in the balance sheet are:
Deferred income tax asset – noncurrent	$	50,778	$	57,476
Deferred income tax liability – noncurrent	(36,122)		(40,504)
Net deferred income taxes	$	14,656	$	16,972

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands):


	2021		2020		2019
Balance of unrecognized tax benefits at beginning of year	$	24,310	$	29,000	$	28,406
Increases for tax positions of prior years	1,533		4,219		2,784
Decreases for tax positions of prior years	(65)		—		(96)
Increases for tax positions established for the current period	2,272		3,912		2,542
Decreases for settlements with taxing authorities	(620)		(285)		(220)
Reductions resulting from lapse of applicable statute of limitation	(2,876)		(12,630)		(4,462)
Adjustment resulting from foreign currency translation	(44)		94		46
Balance of unrecognized tax benefits at end of year	$	24,510	$	24,310	$	29,000