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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income Before Income Taxes | Income tax data for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
The components of income before income taxes are as follows: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | 133,816 |  |  | $ | 144,410 |  |  | $ | 75,193 |
Foreign |  |  | 704,030 |  |  |  | 661,783 |  |  |  | 535,721 |
Total |  | $ | 837,846 |  |  | $ | 806,193 |  |  | $ | 610,914 |
Components of Income Taxes |
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
The components of the income tax provision were as follows: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 62,153 |  |  | $ | 16,302 |  |  | $ | 28,385 |
State |  |  | 8,025 |  |  |  | 3,691 |  |  |  | 4,243 |
Foreign |  |  | 91,901 |  |  |  | 76,724 |  |  |  | 59,408 |
Total current tax provision |  | $ | 162,079 |  |  | $ | 96,717 |  |  | $ | 92,036 |
Federal |  | $ | (26,551 | ) |  | $ | 10,491 |  |  | $ | (8,244 | )
State |  |  | (4,420 | ) |  |  | 345 |  |  |  | (506 | )
Foreign |  |  | (1,017 | ) |  |  | 5,797 |  |  |  | 6,057 |
Total deferred tax provision |  |  | (31,988 | ) |  |  | 16,633 |  |  |  | (2,693 | )
Total provision |  | $ | 130,091 |  |  | $ | 113,350 |  |  | $ | 89,343 |
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, 2022, 2021 and 2020 (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Federal tax computed at U.S. statutory income tax rate |  | $ | 175,948 |  |  | $ | 169,300 |  |  | $ | 128,292 |
GILTI, net of foreign tax credits |  |  | 17,812 |  |  |  | 10,476 |  |  |  | 13,319 |
State income tax, net of federal income tax benefit |  |  | 3,605 |  |  |  | 4,036 |  |  |  | 2,415 |
Net effect of foreign operations |  |  | (54,549 | ) |  |  | (54,566 | ) |  |  | (48,962 | )
Effect of stock-based compensation |  |  | (7,341 | ) |  |  | (6,682 | ) |  |  | (6,798 | )
Other, net |  |  | (5,384 | ) |  |  | (9,214 | ) |  |  | 1,077 |
Provision for income taxes |  | $ | 130,091 |  |  | $ | 113,350 |  |  | $ | 89,343 |
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, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating losses and credits |  | $ | 51,945 |  |  | $ | 55,813 |
Depreciation |  |  | 18 |  |  |  | — |
Operating leases |  |  | 19,771 |  |  |  | 19,288 |
Amortization |  |  | 2,713 |  |  |  | 2,316 |
Stock-based compensation |  |  | 7,947 |  |  |  | 8,074 |
Deferred compensation |  |  | 23,488 |  |  |  | 30,105 |
Deferred revenue |  |  | 13,555 |  |  |  | 10,997 |
Revaluation of equity investments and licenses |  |  | 23 |  |  |  | 3,083 |
Inventory |  |  | 6,463 |  |  |  | 5,405 |
Accrued liabilities and reserves |  |  | 4,815 |  |  |  | 6,675 |
Unrealized foreign currency gain/loss |  |  | 1,858 |  |  |  | 2,266 |
Capitalized Section 174 Expenditures |  |  | 34,234 |  |  |  | — |
Other |  |  | 1,098 |  |  |  | 6,713 |
Total deferred tax assets |  |  | 167,928 |  |  |  | 150,735 |
Valuation allowance |  |  | (54,300 | ) |  |  | (58,834 | )
Deferred tax assets, net of valuation allowance |  |  | 113,628 |  |  |  | 91,901 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Capitalized software |  |  | (25,429 | ) |  |  | (24,357 | )
Operating leases |  |  | (19,543 | ) |  |  | (19,251 | )
Indefinite-lived intangibles |  |  | (16,057 | ) |  |  | (15,534 | )
Depreciation |  |  | — |  |  |  | (3,481 | )
Deferred tax liability on foreign earnings |  |  | (18,677 | ) |  |  | (17,283 | )
Total deferred tax liabilities |  |  | (79,706 | ) |  |  | (79,906 | )
Net deferred tax assets |  | $ | 33,922 |  |  | $ | 11,995 |
Unrecognized Tax Benefits |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Balance at the beginning of the period |  | $ | 28,692 |  |  | $ | 28,666 |  |  | $ | 27,790 |
Net reductions for settlement of tax audits |  |  | — |  |  |  | (1,300 | ) |  |  | (399 | )
Net reductions for lapse of statutes taken during the period |  |  | (818 | ) |  |  | (433 | ) |  |  | (684 | )
Net additions for tax positions taken during the current period |  |  | 1,145 |  |  |  | 1,759 |  |  |  | 1,959 |
Balance at the end of the period |  | $ | 29,019 |  |  | $ | 28,692 |  |  | $ | 28,666 |
Company's valuation allowance | The following is a summary of the activity of the Company’s valuation allowance for the years ended December 31, 2022, 2021 and 2020 (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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  | $ | 58,834 |  |  | $ | (1,647 | ) |  | $ | (2,887 | ) |  | $ | 54,300 |
2021 |  | $ | 60,101 |  |  | $ | 2,919 |  |  | $ | (4,186 | ) |  | $ | 58,834 |
2020 |  | $ | 51,221 |  |  | $ | 1,137 |  |  | $ | 7,743 |  |  | $ | 60,101 |
* | 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 changes in the valuation allowance during the years ended December 31, 2022 and 2021 are 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, 2020 was primarily due to the effect of foreign currency translation on a valuation allowance related to a net operating loss carryforward and acquired historical net operating losses.

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