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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Components of (Loss) Income before (Benefit) Provision from Income Taxes | The components of (loss) before (benefit from) income taxes are:
(in thousands) | 2020 |  | 2019 |  | 2018
Domestic | $ | (59,281) |  |  | $ | (51,396) |  |  | $ | (27,494) |
Foreign | (65,608) |  |  | (83,450) |  |  | 15,951 |
| $ | (124,889) |  |  | $ | (134,846) |  |  | $ | (11,543) |
Components of Provision for Income Taxes | The components of (benefit from) income taxes are:
(in thousands) | 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | (11,251) |  |  | $ | 1,050 |  |  | $ | (1,862) |
State | 399 |  |  | 405 |  |  | 287 |
Foreign | 7,113 |  |  | 3,449 |  |  | 10,313 |
Total current (benefit from) provision for | (3,739) |  |  | 4,904 |  |  | 8,738 |
Deferred: |  |  |  |  |
Federal | (34,573) |  |  | (25,356) |  |  | (18,939) |
State | (8,119) |  |  | (5,143) |  |  | (3,702) |
Foreign | (17,085) |  |  | (18,818) |  |  | (8,257) |
Total deferred (benefit) | (59,777) |  |  | (49,317) |  |  | (30,898) |
| $ | (63,516) |  |  | $ | (44,413) |  |  | $ | (22,160) |
Reconciliation of Effective Income Tax Rate from Statutory Federal Income Tax Rate | A reconciliation of the U.S federal statutory tax rate and the Company’s effective tax rate, is as follows:
(in thousands) | 2020 |  | 2019 |  | 2018
U.S. federal income taxes at statutory rates | $ | (26,227) |  |  | $ | (28,318) |  |  | $ | (2,424) |
Valuation allowance | (5,881) |  |  | 727 |  |  | 510 |
State income taxes, net of federal benefit and tax credits | (6,994) |  |  | (4,450) |  |  | (3,329) |
Permanent differences | 1,773 |  |  | 2,606 |  |  | 1,302 |
GILTI, FDII, and BEAT (1) | — |  |  | — |  |  | 399 |
Federal research and experimentation credits | (5,716) |  |  | (4,295) |  |  | (6,991) |
Tax effects of foreign activities | 3,050 |  |  | 3,056 |  |  | (399) |
Tax-exempt income | — |  |  | (91) |  |  | (137) |
Provision to return adjustments | 3,416 |  |  | (5,460) |  |  | 253 |
Non-deductible compensation | 1,806 |  |  | 1,716 |  |  | 1,025 |
Expiration of statutes and changes in estimates | 55 |  |  | 2,420 |  |  | (516) |
Excess tax benefits related to share-based compensation | (25,797) |  |  | (14,291) |  |  | (13,541) |
Cares Act | (10,576) |  |  | — |  |  | — |
Impact of change in tax law | 7,489 |  |  | 1,908 |  |  | 1,636 |
Other | 86 |  |  | 59 |  |  | 52 |
| $ | (63,516) |  |  | $ | (44,413) |  |  | $ | (22,160) |
(1) Global Intangible Low Taxed Income (“GILTI”), Foreign-Derived Intangible Income (“FDII”), and Base Erosion and Anti-abuse Tax (“BEAT”)
Components of Net Deferred Tax Assets and Liabilities | Significant components of net deferred tax assets and liabilities are:
| December 31,
(in thousands) | 2020 |  | 2019
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 88,129 |  |  | $ | 70,960 |
Accruals and reserves | 26,309 |  |  | 24,902 |
Interest expense carryforward | 3,464 |  |  | — |
Depreciation | 4,795 |  |  | 2,493 |
Tax credit carryforwards | 31,556 |  |  | 15,307 |
Other | 370 |  |  | 199 |
Total deferred tax assets | 154,623 |  |  | 113,861 |
Valuation allowances | (23,409) |  |  | (28,007) |
Total net deferred tax assets | 131,214 |  |  | 85,854 |
Deferred tax liabilities: |  |  |
Capped call transactions | (20,858) |  |  | — |
Convertible senior notes | (6,473) |  |  | — |
Software revenue | (11,477) |  |  | (23,859) |
Intangibles | (4,338) |  |  | (6,103) |
Total deferred tax liabilities | (43,146) |  |  | (29,962) |
| $ | 88,068 |  |  | $ | 55,892 |
Summary of Operating Loss Carryforwards | As of December 31, 2020, the Company’s net operating losses and credit carryforwards are:
(in thousands) | Federal |  | State
Net operating losses (1) | $ | 124,115 |  |  | $ | 9,149 |
Net operating losses due to acquisitions (1) | $ | 76,826 |  |  | $ | 1,466 |
Credit carryforwards (2) | $ | 24,372 |  |  | $ | 1,895 |
Credit carryforwards due to acquisitions | $ | 640 |  |  | $ | 60 |
(1) Excludes federal and state net operating losses of $29.5 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 $9.0 million, respectively, that the Company expects will expire unutilized.
Summary of Credit Carryforwards | As of December 31, 2020, the Company’s net operating losses and credit carryforwards are:
(in thousands) | Federal |  | State
Net operating losses (1) | $ | 124,115 |  |  | $ | 9,149 |
Net operating losses due to acquisitions (1) | $ | 76,826 |  |  | $ | 1,466 |
Credit carryforwards (2) | $ | 24,372 |  |  | $ | 1,895 |
Credit carryforwards due to acquisitions | $ | 640 |  |  | $ | 60 |
(1) Excludes federal and state net operating losses of $29.5 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 $9.0 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) | 2020 |  | 2019 |  | 2018
Balance as of January 1, | $ | 23,271 |  |  | $ | 18,157 |  |  | $ | 19,150 |
Additions for tax positions related to the current year | 653 |  |  | 510 |  |  | 978 |
Additions for tax positions of prior years | 962 |  |  | 4,917 |  |  | 174 |
Reductions for tax positions of prior years | (1,085) |  |  | (313) |  |  | (2,145) |
Balance as of December 31, | $ | 23,801 |  |  | $ | 23,271 |  |  | $ | 18,157 |

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