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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Schedule of components of income tax expense | The components of the provision for income taxes attributable to operations consist of the following (in thousands):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Federal | $ | 53,039 |  |  | $ | 36,167 |  |  | $ | 41,453 |
State | 13,422 |  |  | 5,140 |  |  | 3,518 |
Foreign | 1,305 |  |  | 708 |  |  | 295 |
Total current | 67,766 |  |  | 42,015 |  |  | 45,266 |
Deferred: |  |  |  |  |  |  |  |
Federal | 6,881 |  |  | 6,576 |  |  | (7,917 | )
State | 2,424 |  |  | (2,582 | ) |  | 4,695 |
Foreign | (1,085 | ) |  | (328 | ) |  | 319 |
Total deferred | 8,220 |  |  | 3,666 |  |  | (2,903 | )
Total provision for income taxes | $ | 75,986 |  |  | $ | 45,681 |  |  | $ | 42,363 |
Schedule of deferred tax assets and liabilities | The components of deferred tax assets and liabilities consist of the following (in thousands):
| December 31,
| 2019 |  | 2018
Deferred tax assets: |  |  |
Reserve for bad debts | 1,312 |  |  | 1,457 |
Accrued compensation | 4,297 |  |  | 4,803 |
Stock compensation | 13,877 |  |  | 10,041 |
Net operating losses | 20,555 |  |  | 26,349 |
Accrued reserve and other | 4,177 |  |  | 1,773 |
Lease liabilities | 36,472 |  |  | — |
Deferred rent | — |  |  | 5,928 |
Deferred gain on the sale of building | — |  |  | 4,140 |
Research and development credits | 6,341 |  |  | 6,331 |
Total deferred tax assets, prior to valuation allowance | 87,031 |  |  | 60,822 |
Valuation allowance | (13,553 | ) |  | (14,246 | )
Total deferred tax assets, net of valuation allowance | 73,478 |  |  | 46,576 |
Deferred tax liabilities: |  |  |  |  |
Deferred commission costs, net | (22,612 | ) |  | (19,314 | )
Lease right-of-use assets | (30,830 | ) |  | — |
Prepaid expenses | (1,548 | ) |  | (2,204 | )
Property and equipment, net | (8,891 | ) |  | (5,367 | )
Intangible assets, net | (91,285 | ) |  | (82,079 | )
Total deferred tax liabilities | (155,166 | ) |  | (108,964 | )
Net deferred tax assets (liabilities) | $ | (81,688 | ) |  | $ | (62,388 | )
Schedule of effective income tax rate reconciliation | The Company’s provision for income taxes resulted in effective tax rates that varied from the statutory federal income tax rate as follows (in thousands):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Expected federal income tax provision at statutory rate | $ | 82,099 |  |  | $ | 59,643 |  |  | $ | 57,770 |
State income taxes, net of federal benefit | 14,884 |  |  | 10,312 |  |  | 4,776 |
Foreign income taxes, net effect | 1,515 |  |  | (315 | ) |  | (3,540 | )
Increase (decrease) in valuation allowance | (693 | ) |  | 1,214 |  |  | 3,624 |
Tax rate changes | (13 | ) |  | 141 |  |  | (7,340 | )
Research credits | (12,188 | ) |  | (15,373 | ) |  | (20,547 | )
Excess tax benefit | (15,282 | ) |  | (14,227 | ) |  | (7,010 | )
Tax reserves | 3,135 |  |  | 1,870 |  |  | 12,646 |
Other adjustments | 2,529 |  |  | 2,416 |  |  | 1,984 |
Income tax expense | $ | 75,986 |  |  | $ | 45,681 |  |  | $ | 42,363 |
Schedule of unrecognized tax benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
Unrecognized tax benefit as of December 31, 2016 | $ | 1,843 |
Increase for current year tax positions | 12,620 |
Decrease for prior year tax positions | (34 | )
Expiration of the statute of limitation for assessment of taxes | (66 | )
Unrecognized tax benefit as of December 31, 2017 | 14,363 |
Increase for current year tax positions | 9,561 |
Decrease for prior year tax positions | (70 | )
Expiration of the statute of limitation for assessment of taxes | (1,482 | )
Unrecognized tax benefit as of December 31, 2018 | 22,372 |
Increase for current year tax positions | 3,487 |
Increase for prior year tax positions | 440 |
Expiration of the statute of limitation for assessment of taxes | (832 | )
Unrecognized tax benefit as of December 31, 2019 | $ | 25,467 |

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