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INCOME TAXES (Tables)

12 Months Ended

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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