XML 57 R42.htm IDEA: XBRL DOCUMENT
v3.10.0.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Components of (Loss) Income before (Benefit) Provision from Income Taxes | The components of (loss) income before (benefit) provision from income taxes are:
(in thousands) | 2018 |  | 2017 |  | 2016
Domestic | $ | (27,494 | ) |  | $ | 57,493 |  |  | $ | 39,559 |
Foreign | 15,951 |  |  | 28,742 |  |  | 15,776 |
(Loss) income before (benefit) provision from income taxes | $ | (11,543 | ) |  | $ | 86,235 |  |  | $ | 55,335 |
Components of Provision for Income Taxes | The components of the provision for income taxes are:
(in thousands) | 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Federal | $ | (1,862 | ) |  | $ | (18,109 | ) |  | $ | 7,389 |
State | 287 |  |  | 97 |  |  | 3,081 |
Foreign | 10,313 |  |  | 8,479 |  |  | 4,248 |
Total current provision (benefit) | 8,738 |  |  | (9,533 | ) |  | 14,718 |
Deferred: |  |  |  |  |
Federal | (18,939 | ) |  | (2,049 | ) |  | (1,125 | )
State | (3,702 | ) |  | (214 | ) |  | (466 | )
Foreign | (8,257 | ) |  | (517 | ) |  | (2,807 | )
Total deferred benefit | (30,898 | ) |  | (2,780 | ) |  | (4,398 | )
(Benefit) provision from income taxes | $ | (22,160 | ) |  | $ | (12,313 | ) |  | $ | 10,320 |
Reconciliation of Effective Income Tax Rate from Statutory Federal Income Tax Rate | The effective income tax rate differed from the statutory federal income tax rate due to the following (1):
| 2018 |  | 2017 |  | 2016
Statutory federal income tax rate | 21.0 | % |  | 35.0 | % |  | 35.0 | %
Valuation allowance | (4.4 | )% |  | 0.5 | % |  | 0.2 | %
Transaction costs | — | % |  | — | % |  | 0.7 | %
State income taxes, net of federal benefit and tax credits | 28.9 | % |  | (0.5 | )% |  | 2.5 | %
Permanent differences | (11.2 | )% |  | 1.1 | % |  | 1.4 | %
GILTI, FDII, and BEAT | (3.5 | )% |  | — | % |  | — | %
Federal research and experimentation credits | 60.6 | % |  | (3.9 | )% |  | (1.5 | )%
Tax effects of foreign activities | 3.5 | % |  | (0.9 | )% |  | (5.6 | )%
Tax-exempt income | 1.2 | % |  | (0.1 | )% |  | (0.2 | )%
Provision to return adjustments | (2.2 | )% |  | (2.1 | )% |  | — | %
Non-deductible compensation | (8.9 | )% |  | 2.1 | % |  | 4.0 | %
Expiration of statutes and changes in estimates | 4.5 | % |  | 0.3 | % |  | (1.2 | )%
Excess tax benefits related to share-based compensation | 117.3 | % |  | (28.4 | )% |  | (12.8 | )%
Domestic Production Activities | — | % |  | — | % |  | (2.0 | )%
Deferred tax asset adjustment | (14.2 | )% |  | (17.9 | )% |  | (0.3 | )%
Other | (0.6 | )% |  | 0.5 | % |  | (1.5 | )%
Effective income tax rate | 192.0 | % |  | (14.3 | )% |  | 18.7 | %
(1) In periods of loss before incomes taxes, income tax benefits are reflected as a positive in this table.
Components of Net Deferred Tax Assets and Liabilities | Significant components of net deferred tax assets and liabilities are:
| December 31,
(in thousands) | 2018 |  | 2017
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 40,736 |  |  | $ | 52,311 |
Accruals and reserves | 17,576 |  |  | 14,668 |
Software revenue | — |  |  | — |
Depreciation | 2,874 |  |  | 2,558 |
Tax credit carryforwards | 14,896 |  |  | 13,056 |
Other | 176 |  |  | 52 |
Total deferred tax assets | 76,258 |  |  | 82,645 |
Valuation allowances | (27,954 | ) |  | (27,994 | )
Total net deferred tax assets | 48,304 |  |  | 54,651 |
Deferred tax liabilities: |  |  |
Software revenue | (36,510 | ) |  | (70,347 | )
Intangibles | (5,748 | ) |  | (8,527 | )
Total deferred tax liabilities | (42,258 | ) |  | (78,874 | )
Deferred income taxes | $ | 6,046 |  |  | $ | (24,223 | )
Summary of Operating Loss Carryforwards | At December 31, 2018 the Company’s net operating losses and credit carryforwards are:
(in thousands) | Federal |  | State
Net operating losses (1) | $ | 81,206 |  |  | $ | 2,210 |
Net operating losses due to acquisitions | $ | 81,206 |  |  | $ | 665 |
Credit carryforwards (2) | $ | 7,480 |  |  | $ | 1,937 |
Credit carryforwards due to acquisitions | $ | 640 |  |  | $ | 324 |
(1) Excludes federal and state net operating losses of $60.2 million and $0.8 million, respectively, and federal and state tax credits of $0.1 million and $7.4 million, respectively, that the Company expects will expire unutilized, (2) Carryforward losses and credits expire between 2019 and 2037 except for $0.9 million of state credits that have an unlimited carryforward period.
Summary of Credit Carryforwards | At December 31, 2018 the Company’s net operating losses and credit carryforwards are:
(in thousands) | Federal |  | State
Net operating losses (1) | $ | 81,206 |  |  | $ | 2,210 |
Net operating losses due to acquisitions | $ | 81,206 |  |  | $ | 665 |
Credit carryforwards (2) | $ | 7,480 |  |  | $ | 1,937 |
Credit carryforwards due to acquisitions | $ | 640 |  |  | $ | 324 |
(1) Excludes federal and state net operating losses of $60.2 million and $0.8 million, respectively, and federal and state tax credits of $0.1 million and $7.4 million, respectively, that the Company expects will expire unutilized, (2) Carryforward losses and credits expire between 2019 and 2037 except for $0.9 million of state credits that have an unlimited carryforward period.
Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits | A rollforward of the Company’s gross unrecognized tax benefits is:
(in thousands) | 2018 |  | 2017 |  | 2016
Balance as of January 1, | $ | 19,150 |  |  | $ | 22,671 |  |  | $ | 23,972 |
Additions based on tax positions related to the current year | 978 |  |  | 452 |  |  | 80 |
Additions for tax positions of prior years | 174 |  |  | 238 |  |  | 110 |
Additions for acquired uncertain tax benefits | — |  |  | — |  |  | 387 |
Reductions for change in U.S. federal tax rate | — |  |  | (2,424 | ) |  | — |
Reductions for tax positions of prior years | (2,145 | ) |  | (1,500 | ) |  | (1,541 | )
Reductions for a lapse of the applicable statute of limitations | — |  |  | (287 | ) |  | (337 | )
Balance as of December 31, | $ | 18,157 |  |  | $ | 19,150 |  |  | $ | 22,671 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfTaxCreditCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration