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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Taxes

Income tax data for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands):

		Year Ended December 31,
		2019				2018				2017
The components of income from operations before income taxes are as follows:
Domestic		$	97,325			$	57,822			$	55,751
Foreign			580,914				624,324				585,346
Total		$	678,239			$	682,146			$	641,097

Components of Income Taxes

		Year Ended December 31,
		2019				2018				2017
The components of the income tax provision from operations were as follows:
Federal		$	7,009			$	27,277			$	499,828
State			3,329				(11,964	)			21,163
Foreign			66,083				70,634				54,285
Total current tax provision		$	76,421			$	85,947			$	575,276
Federal		$	6,913			$	(3,256	)		$	35,949
State			1,253				2,247				5,398
Foreign			1,454				3,414				4,163
Total deferred tax provision			9,620				2,405				45,510
Total provision		$	86,041			$	88,352			$	620,786

Effective Income Tax Rate Reconciliation

The differences between income taxes computed at the United States statutory rate and the provision for income taxes are summarized as follows for the years ended December 31, 2019, 2018 and 2017 (in thousands):

		Year Ended December 31,
		2019				2018				2017
Federal tax computed at U.S. statutory income tax rate		$	142,430			$	143,251			$	224,384
Enactment of the 2017 Tax Cuts and Jobs Act			—				(6,059	)			550,000
Foreign currency exchange impact on distributed earnings			(3,229	)			7,495				—
GILTI, net of foreign tax credits			10,523				13,727				—
Settlement of tax audits			—				—				706
State income tax, net of federal income tax benefit			3,459				2,910				1,289
Net effect of foreign operations			(52,727	)			(57,003	)			(131,694	)
Effect of stock-based compensation			(9,211	)			(9,089	)			(19,566	)
Other, net			(5,204	)			(6,880	)			(4,333	)
Provision for income taxes		$	86,041			$	88,352			$	620,786

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards which give rise to deferred tax assets and deferred tax liabilities are summarized as follows (in thousands):

		December 31,
		2019				2018
Deferred tax assets:
Net operating losses and credits		$	55,939			$	63,052
Depreciation			4,776				7,495
Operating leases			19,849				—
Amortization			3,738				3,633
Stock-based compensation			9,790				9,984
Deferred compensation			20,077				22,058
Unrealized foreign currency gain/loss			7,955				5,881
Deferred revenue			9,696				4,654
Revaluation of equity investments and licenses			3,424				3,148
Inventory			4,824				4,588
Accrued liabilities and reserves			7,215				7,213
Other			3,839				4,073
Total deferred tax assets			151,122				135,779
Valuation allowance			(51,221	)			(53,893	)
Deferred tax assets, net of valuation allowance			99,901				81,886
Deferred tax liabilities:
Capitalized software			(21,025	)			(19,491	)
Operating leases			(19,553	)			—
Indefinite-lived intangibles			(14,363	)			(13,753	)
Deferred tax liability on foreign earnings			(18,027	)			(20,443	)
Total deferred tax liabilities			(72,968	)			(53,687	)
Net deferred tax assets		$	26,933			$	28,199

Unrecognized Tax Benefits

The following is a summary of the activity of the Company’s gross unrecognized tax benefits, excluding interest and penalties, for the year ended December 31, 2019, 2018 and 2017 (in thousands):

		2019				2018				2017
Balance at the beginning of the period		$	26,108			$	5,843			$	9,964
Net reductions for settlement of tax audits			—				—				(22	)
Net reductions for lapse of statutes taken during the period			(261	)			(436	)			(5,178	)
Net additions for tax positions taken during the prior period			—				17,651				—
Net additions for tax positions taken during the current period			1,943				3,050				1,079
Balance at the end of the period		$	27,790			$	26,108			$	5,843

Company's valuation allowance

The following is a summary of the activity of the Company’s valuation allowance for the years ended December 31, 2019, 2018 and 2017 (in thousands):

		Balance at Beginning of Period				Charged to Provision for Income Taxes*				Other**				Balance at End of Period
Valuation allowance for deferred tax assets:
																	2019		$	53,893			$	(1,242	)		$	(1,430	)		$	51,221
2018		$	62,098			$	(2,128	)		$	(6,077	)		$	53,893
2017		$	61,225			$	(6,363	)		$	7,236			$	62,098

* These amounts have been recorded as part of the income statement provision for income taxes. The income statement effects of these amounts have largely been offset by amounts related to changes in other deferred tax balance sheet accounts.

** The change in the valuation allowance during the year ended December 31, 2019 is primarily due to the effect of foreign currency translation on a valuation allowance related to a net operating loss carryforward. The change in the valuation allowance during the year ended December 31, 2018 was primarily due to the write-off of a valuation allowance to Retained Earnings for the tax effect related to intra-entity transfers. The change in the valuation allowance during the year ended December 31, 2017 was primarily due to the effect of foreign currency translation on a valuation allowance related to a net operating loss carryforward.

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