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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Components of Income Before Tax | The components of income before provision for income taxes were as follows for the years ended December 31, 2023, 2022 and 2021 (in thousands):
| 2023 |  | 2022 |  | 2021
U.S. | $ | 20,146 |  |  | $ | 61,383 |  |  | $ | 70,300 |
Foreign | 632,381 |  |  | 596,620 |  |  | 657,921 |
Income before provision for income taxes | $ | 652,527 |  |  | $ | 658,003 |  |  | $ | 728,221 |
Schedule of Provision for Income Tax | The provision for income taxes consisted of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands):
| 2023 |  | 2022 |  | 2021
Current tax provision: |  |  |  |  |
Federal | $ | 23,406 |  |  | $ | 49,808 |  |  | $ | 11,824 |
State | 6,731 |  |  | 9,214 |  |  | 8,515 |
Foreign | 99,223 |  |  | 172,645 |  |  | 90,026 |
Deferred tax benefit: |  |  |  |  |
Federal | (18,213) |  |  | (73,826) |  |  | (33,366) |
State | (6,692) |  |  | (18,657) |  |  | (14,611) |
Foreign | (2,536) |  |  | (16,595) |  |  | (4,358) |
Change in valuation allowance | 4,454 |  |  | 4,107 |  |  | 4,541 |
Total | $ | 106,373 |  |  | $ | 126,696 |  |  | $ | 62,571 |
Schedule of Difference Between Effective and Statutory | The Company’s effective tax rate differed from the U.S. federal statutory tax rate as follows for the years ended December 31, 2023, 2022 and 2021:
| 2023 |  | 2022 |  | 2021
U.S. federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes | 1.0 |  |  | 0.7 |  |  | 0.7 |
Stock-based compensation | 3.6 |  |  | 2.0 |  |  | 0.1 |
U.S. federal, state and foreign research and development credits | (4.7) |  |  | (5.1) |  |  | (3.7) |
Foreign earnings | (6.5) |  |  | (6.6) |  |  | (7.3) |
Nondeductible (nontaxable) foreign items | (0.2) |  |  | 0.7 |  |  | — |
Global intangible low-taxed income | 1.1 |  |  | 2.5 |  |  | 0.5 |
Release of uncertain tax position reserve | (0.4) |  |  | (0.7) |  |  | (1.0) |
Intercompany sale of intellectual property | 0.6 |  |  | 4.0 |  |  | — |
Valuation allowance | 0.7 |  |  | 0.6 |  |  | 0.6 |
Foreign-derived intangible income | (1.1) |  |  | (0.8) |  |  | (0.5) |
Other | 1.2 |  |  | 1.0 |  |  | (1.8) |
| 16.3 | % |  | 19.3 | % |  | 8.6 | %
Net Deferred Tax and Valuation Allowance | The components of the net deferred tax assets and liabilities and the related valuation allowance as of December 31, 2023 and 2022 were as follows (in thousands):
| 2023 |  | 2022
Accrued bonus | $ | 3,716 |  |  | $ | 21,181 |
Deferred revenue | 14,223 |  |  | 11,925 |
Operating lease liabilities | 116,752 |  |  | 125,567 |
Stock-based compensation | 42,856 |  |  | 19,874 |
NOLs | 19,791 |  |  | 18,172 |
Tax credit carryforwards | 96,020 |  |  | 93,672 |
Capitalized research and development costs | 108,592 |  |  | 43,215 |
Convertible senior notes interest | 111,509 |  |  | 75,603 |
Depreciation and amortization | 66,053 |  |  | 79,595 |
Other | 21,856 |  |  | 28,879 |
Deferred tax assets | 601,368 |  |  | 517,683 |
Acquired intangible assets | (12,126) |  |  | (530) |
Operating lease right-of-use assets | (103,392) |  |  | (113,118) |
Deferred commissions | (14,752) |  |  | (12,949) |
Capitalized internal-use software development costs | (31,719) |  |  | (30,559) |
Deferred tax liabilities | (161,989) |  |  | (157,156) |
Valuation allowance | (45,704) |  |  | (41,250) |
Net deferred tax assets | $ | 393,675 |  |  | $ | 319,277 |
Summary of Valuation Allowance | As summary of activity in the valuation allowance on deferred tax assets for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands):
| 2023 |  | 2022 |  | 2021
Beginning balance | $ | 41,250 |  |  | $ | 37,143 |  |  | $ | 32,602 |
Charges to income tax expense | 4,814 |  |  | 4,392 |  |  | 4,707 |
Release of valuation allowance | (360) |  |  | (285) |  |  | (166) |
Ending balance | $ | 45,704 |  |  | $ | 41,250 |  |  | $ | 37,143 |
Schedule of Operating Loss Carryforwards | The Company's NOL and tax credit carryforwards in U.S. federal, state and foreign jurisdictions as of December 31, 2023 and 2022 were as follows (in thousands, except years):
| 2023 |  | 2022 |  | Expirations at Various Dates Through:
NOL carryforwards: |  |  |  |  |
Federal | $ | 32,700 |  |  | $ | 30,100 |  |  | 2037
State | 33,100 |  |  | 22,400 |  |  | 2043
Foreign | 42,600 |  |  | 40,100 |  |  | 2039
Federal and state research and development tax credit and other credit carryforwards | 125,200 |  |  | 121,300 |  |  | 2038
Unrecognized Tax Benefits | The changes in the Company’s unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):
| 2023 |  | 2022 |  | 2021
Balance at beginning of year | $ | 67,958 |  |  | $ | 22,563 |  |  | $ | 24,105 |
Gross increases – tax positions of prior periods | 2,074 |  |  | 3,880 |  |  | 4,293 |
Gross increases – current period tax positions | 4,091 |  |  | 45,975 |  |  | 3,607 |
Gross decreases – tax positions of prior periods | (3,685) |  |  | (688) |  |  | (816) |
Gross decreases – lapse of applicable statute of limitations | (1,780) |  |  | (3,772) |  |  | (8,626) |
Balance at end of year | $ | 68,658 |  |  | $ | 67,958 |  |  | $ | 22,563 |

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