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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Components of (Loss) Income before (Benefit) Provision from Income Taxes | The components of (loss) income before (benefit from) income taxes are:
(in thousands) | 2019 |  | 2018 |  | 2017
Domestic | $ | (51,396 | ) |  | $ | (27,494 | ) |  | $ | 57,493 |
Foreign | (83,450 | ) |  | 15,951 |  |  | 28,742 |
(Loss) income before (benefit from) income taxes | $ | (134,846 | ) |  | $ | (11,543 | ) |  | $ | 86,235 |
Components of Provision for Income Taxes | The components of the (benefit from) income taxes are:
(in thousands) | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Federal | $ | 1,050 |  |  | $ | (1,862 | ) |  | $ | (18,109 | )
State | 405 |  |  | 287 |  |  | 97 |
Foreign | 3,449 |  |  | 10,313 |  |  | 8,479 |
Total current provision for (benefit from) | 4,904 |  |  | 8,738 |  |  | (9,533 | )
Deferred: |  |  |  |  |
Federal | (25,356 | ) |  | (18,939 | ) |  | (2,049 | )
State | (5,143 | ) |  | (3,702 | ) |  | (214 | )
Foreign | (18,818 | ) |  | (8,257 | ) |  | (517 | )
Total deferred (benefit) | (49,317 | ) |  | (30,898 | ) |  | (2,780 | )
(Benefit from) income taxes | $ | (44,413 | ) |  | $ | (22,160 | ) |  | $ | (12,313 | )
Reconciliation of Effective Income Tax Rate from Statutory Federal Income Tax Rate | A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate to (loss) income before (benefit from) income taxes is as follows:
(in thousands) | 2019 |  | 2018 |  | 2017
U.S. federal income taxes at statutory rates | $ | (28,318 | ) |  | $ | (2,424 | ) |  | $ | 30,182 |
Valuation allowance | 727 |  |  | 510 |  |  | 459 |
State income taxes, net of federal benefit and tax credits | (4,450 | ) |  | (3,329 | ) |  | (395 | )
Permanent differences | 2,606 |  |  | 1,302 |  |  | 778 |
GILTI, FDII, and BEAT | — |  |  | 399 |  |  | — |
Federal research and experimentation credits | (4,295 | ) |  | (6,991 | ) |  | (3,374 | )
Tax effects of foreign activities | 3,056 |  |  | (399 | ) |  | (781 | )
Tax-exempt income | (91 | ) |  | (137 | ) |  | (94 | )
Provision to return adjustments | (5,460 | ) |  | 253 |  |  | (1,832 | )
Non-deductible compensation | 1,716 |  |  | 1,025 |  |  | 1,840 |
Expiration of statutes and changes in estimates | 2,420 |  |  | (516 | ) |  | 257 |
Excess tax benefits related to share-based compensation | (14,291 | ) |  | (13,541 | ) |  | (24,488 | )
Impact of change in tax law | 1,908 |  |  | 1,636 |  |  | (15,450 | )
Other | 59 |  |  | 52 |  |  | 585 |
(Benefit from) income taxes | $ | (44,413 | ) |  | $ | (22,160 | ) |  | $ | (12,313 | )
Components of Net Deferred Tax Assets and Liabilities | Significant components of net deferred tax assets and liabilities are:
| December 31,
(in thousands) | 2019 |  | 2018
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 70,960 |  |  | $ | 40,736 |
Accruals and reserves | 24,902 |  |  | 17,576 |
Depreciation | 2,493 |  |  | 2,874 |
Tax credit carryforwards | 15,307 |  |  | 14,896 |
Other | 199 |  |  | 176 |
Total deferred tax assets | 113,861 |  |  | 76,258 |
Valuation allowances | (28,007 | ) |  | (27,954 | )
Total net deferred tax assets | 85,854 |  |  | 48,304 |
Deferred tax liabilities: |  |  |
Software revenue | (23,859 | ) |  | (36,510 | )
Intangibles | (6,103 | ) |  | (5,748 | )
Total deferred tax liabilities | (29,962 | ) |  | (42,258 | )
Deferred income taxes | $ | 55,892 |  |  | $ | 6,046 |
Summary of Operating Loss Carryforwards | At December 31, 2019, the Company’s net operating losses and credit carryforwards are:
(in thousands) | Federal |  | State
Net operating losses (1) | $ | 120,722 |  |  | $ | 3,337 |
Net operating losses due to acquisitions (1) | $ | 76,827 |  |  | $ | 778 |
Credit carryforwards (2) | $ | 8,202 |  |  | $ | 1,958 |
Credit carryforwards due to acquisitions | $ | 640 |  |  | $ | 227 |
(1) Excludes federal and state net operating losses of $60.2 million and $0.8 million, respectively, from prior acquisitions that the Company expects will expire unutilized. (2) Excludes federal and state tax credits of $0.1 million and $8.3 million, respectively, that the Company expects will expire unutilized.
Summary of Credit Carryforwards | At December 31, 2019, the Company’s net operating losses and credit carryforwards are:
(in thousands) | Federal |  | State
Net operating losses (1) | $ | 120,722 |  |  | $ | 3,337 |
Net operating losses due to acquisitions (1) | $ | 76,827 |  |  | $ | 778 |
Credit carryforwards (2) | $ | 8,202 |  |  | $ | 1,958 |
Credit carryforwards due to acquisitions | $ | 640 |  |  | $ | 227 |
(1) Excludes federal and state net operating losses of $60.2 million and $0.8 million, respectively, from prior acquisitions that the Company expects will expire unutilized. (2) Excludes federal and state tax credits of $0.1 million and $8.3 million, respectively, that the Company expects will expire unutilized.
Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits | A rollforward of the Company’s gross unrecognized tax benefits is:
(in thousands) | 2019 |  | 2018 |  | 2017
Balance as of January 1, | $ | 18,157 |  |  | $ | 19,150 |  |  | $ | 22,671 |
Additions based on tax positions related to the current year | 510 |  |  | 978 |  |  | 452 |
Additions for tax positions of prior years | 4,917 |  |  | 174 |  |  | 238 |
Additions for acquired uncertain tax benefits | — |  |  | — |  |  | — |
Reductions for change in U.S. federal tax rate | — |  |  | — |  |  | (2,424 | )
Reductions for tax positions of prior years | (313 | ) |  | (2,145 | ) |  | (1,500 | )
Reductions for a lapse of the applicable statute of limitations | — |  |  | — |  |  | (287 | )
Balance as of December 31, | $ | 23,271 |  |  | $ | 18,157 |  |  | $ | 19,150 |

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