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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Domestic and Foreign Components of Income Before Income Taxes | The following are the domestic and foreign components of the Company’s income before income taxes (in thousands):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Domestic |  | $ | 193,048 |  |  | $ | 212,531 |  |  | $ | 162,252 |
Foreign |  |  | (71,012 | ) |  |  | (68,628 | ) |  |  | (46,032 | )
Income before income taxes |  | $ | 122,036 |  |  | $ | 143,903 |  |  | $ | 116,220 |
Components of Provision for (Benefit from) Income Taxes | The following are the components of the provision for (benefit from) income taxes (in thousands):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 10,332 |  |  | $ | (50,096 | ) |  | $ | 9,180 |
State and local |  |  | (10,417 | ) |  |  | (19,650 | ) |  |  | 7,800 |
Foreign |  |  | 2,435 |  |  |  | 2,550 |  |  |  | 1,412 |
Total current provision |  |  | 2,350 |  |  |  | (67,196 | ) |  |  | 18,392 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (21,287 | ) |  |  | (20,900 | ) |  |  | (6,316 | )
State and local |  |  | 3,193 |  |  |  | (9,079 | ) |  |  | (5,339 | )
Foreign |  |  | 18 |  |  |  | (1,239 | ) |  |  | 1,165 |
Total deferred provision |  |  | (18,076 | ) |  |  | (31,218 | ) |  |  | (10,490 | )
Total provision for (benefit from) income taxes |  | $ | (15,726 | ) |  | $ | (98,414 | ) |  | $ | 7,902 |
Reconciliation of Statutory Tax Rate to Effective Tax Rate | A reconciliation of the statutory tax rate to the effective tax rate for the periods presented is as follows:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
U.S. federal statutory income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State and local income taxes, net of federal benefit |  |  | (5.3 | ) |  |  | (15.7 | ) |  |  | 1.7 |
Foreign income at other than U.S. rates (1) |  |  | 14.2 |  |  |  | 10.9 |  |  |  | 10.5 |
Stock-based compensation |  |  | (29.9 | ) |  |  | (59.6 | ) |  |  | (20.5 | )
Meals and entertainment |  |  | 0.2 |  |  |  | 0.2 |  |  |  | 0.7 |
Nondeductible compensation |  |  | 1.7 |  |  |  | 0.6 |  |  |  | (1.3 | )
Research and development credit |  |  | (15.3 | ) |  |  | (14.1 | ) |  |  | (5.0 | )
Other permanent items |  |  | 0.5 |  |  |  | 0.1 |  |  |  | (0.3 | )
Benefit from carryback of NOLs |  |  | — |  |  |  | (11.8 | ) |  |  | — |
Effective income tax rate |  | (12.9%) |  |  | (68.4)% |  |  |  | 6.8 | %
__________
| (1) | For the years ended December 31, 2021, 2020, and 2019, includes the impact of the valuation allowance associated with the United Kingdom (“U.K.”). For additional information, see discussion below.
Tax Effects of Temporary Differences that Give Rise to a Significant Portion of Deferred Tax Assets and Deferred Tax Liabilities | Set forth below are the tax effects of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities (in thousands):
|  | As of December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Reserves and allowances |  | $ | 6,161 |  |  | $ | 5,521 |
Accrued expenses |  |  | 8,103 |  |  |  | 8,977 |
Net operating losses |  |  | 142,708 |  |  |  | 58,813 |
Research and development tax credit |  |  | 53,472 |  |  |  | 30,138 |
Stock-based compensation |  |  | 16,621 |  |  |  | 13,584 |
Prepaid expenses |  |  | (1,674 | ) |  |  | (1,365 | )
Property and equipment |  |  | (21,924 | ) |  |  | (14,375 | )
Intangibles (1) |  |  | 219,492 |  |  |  | 184,965 |
Capitalized software development costs |  |  | (3,565 | ) |  |  | (2,836 | )
Operating lease assets |  |  | (46,435 | ) |  |  | (55,685 | )
Operating lease liabilities |  |  | 56,415 |  |  |  | 64,359 |
Other |  |  | 484 |  |  |  | 487 |
Valuation allowance |  |  | (361,614 | ) |  |  | (242,415 | )
Total deferred tax assets, net |  | $ | 68,244 |  |  | $ | 50,168 |
| (1) | As of December 31, 2021 and 2020, includes intangibles associated with our international restructuring, net of amortization, offset by a reserve for uncertain tax position. See discussion below.
Schedule of Changes in Gross Unrecognized Tax Benefits | The following table presents changes in gross unrecognized tax benefits (in thousands):
|  | Year Ended December 31, |
|  | 2021 (1) |  |  | 2020 (1) |  |  | 2019 (1) |
Beginning balance |  | $ | 66,875 |  |  | $ | 53,213 |  |  | $ | 4,330 |
Increases related to prior year tax positions |  |  | 13,075 |  |  |  | 5,378 |  |  |  | — |
Decreases related to prior year tax positions |  |  | — |  |  |  | — |  |  |  | (20 | )
Increases related to current year tax positions |  |  | 6,381 |  |  |  | 9,206 |  |  |  | 49,100 |
Settlements |  |  | — |  |  |  | (520 | ) |  |  | (197 | )
Expiration of statute of limitations |  |  | — |  |  |  | (402 | ) |  |  | — |
Ending balance |  | $ | 86,331 |  |  | $ | 66,875 |  |  | $ | 53,213 |
______________ (1)Includes the impact of a statutory rate change in the U.K

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