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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Loss Before Income Tax Provision (Benefit) | The Company’s income before income tax provision was subject to taxes in the following jurisdictions for the following periods (in thousands):
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016(1)
United States | $ | 100,031 |  |  | $ | 50,706 |  |  | $ | 38,268 |
Foreign | 31,241 |  |  | 17,349 |  |  | 20,125 |
| $ | 131,272 |  |  | $ | 68,055 |  |  | $ | 58,393 |
Expense Benefit for Income Taxes | The expense (benefit) for income taxes is comprised of (in thousands):
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016(2)
Current tax provision: |  |  |  |  |
Federal | $ | 736 |  |  | $ | 610 |  |  | $ | 541 |
State | 1,880 |  |  | 1,259 |  |  | 543 |
Foreign | 6,577 |  |  | 6,135 |  |  | 7,289 |
| 9,193 |  |  | 8,004 |  |  | 8,373 |
Deferred tax expense (benefit): |  |  |  |  |
Federal | 14,844 |  |  | 20,746 |  |  | (129,405 | )
State | 1,086 |  |  | (1,127 | ) |  | (10,693 | )
Foreign | 895 |  |  | (1,235 | ) |  | (836 | )
| 16,825 |  |  | 18,384 |  |  | (140,934 | )
Income tax provision | $ | 26,018 |  |  | $ | 26,388 |  |  | $ | (132,561 | )
(1) | Income before income taxes in 2016 includes a gain of $17,662,000 that was recognized in connection with the sale of preferred shares of the Company's investment in Topgolf. See Note 7 for further discussion.
(2) | The income tax benefit for 2016 includes the reversal of a significant portion of the valuation allowance on the Company's deferred tax assets in the U.S. See further discussion below.
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows (in thousands):
| December 31,
| 2018 |  | 2017
Deferred tax assets: |  |  |
Reserves and allowances not currently deductible for tax purposes | $ | 13,495 |  |  | $ | 12,783 |
Basis difference related to fixed assets | 5,342 |  |  | 5,946 |
Compensation and benefits | 8,416 |  |  | 7,807 |
Basis difference for inventory valuation | 1,784 |  |  | 1,612 |
Compensatory stock options and rights | 3,988 |  |  | 3,869 |
Deferred revenue and other | 120 |  |  | 175 |
Operating loss carryforwards | 7,191 |  |  | 21,799 |
Tax credit carryforwards | 54,219 |  |  | 62,668 |
Basis difference related to intangible assets with a definite life | 12,767 |  |  | 7,061 |
Other | 5,678 |  |  | 634 |
Total deferred tax assets | 113,000 |  |  | 124,354 |
Valuation allowance for deferred tax assets | (13,408 | ) |  | (11,114 | )
Deferred tax assets, net of valuation allowance | $ | 99,592 |  |  | $ | 113,240 |
Deferred tax liabilities: |  |  |
Prepaid expenses | (1,181 | ) |  | (773 | )
Basis difference related to intangible assets with an indefinite life | (25,128 | ) |  | (22,891 | )
Total deferred tax liabilities | (26,309 | ) |  | (23,664 | )
Net deferred tax assets | $ | 73,283 |  |  | $ | 89,576 |
Net deferred tax assets (liabilities) are shown on the accompanying consolidated balance sheets as follows: |  |  |
Non-current deferred tax assets | $ | 75,079 |  |  | $ | 91,398 |
Non-current deferred tax liabilities | (1,796 | ) |  | (1,822 | )
Net deferred tax assets | $ | 73,283 |  |  | $ | 89,576 |
Credit Carryforward Expiry | At December 31, 2018, the Company had federal and state income tax credit carryforwards of $62,806,000 and $18,335,000, respectively, which will expire if unused at various dates beginning on December 31, 2024. Such credit carryforwards expire as follows (in thousands):
U.S. foreign tax credit | $ | 47,407 |  |  | 2024 - 2028
U.S. research tax credit | $ | 15,374 |  |  | 2030 - 2038
U.S. business tax credits | $ | 25 |  |  | 2030 - 2038
State investment tax credits | $ | 1,031 |  |  | Do not expire
State research tax credits | $ | 17,304 |  |  | Do not expire
Net Operating Losses Expiry | The Company has recorded a deferred tax asset reflecting the benefit of operating loss carryforwards. The net operating losses expire as follows (in thousands):
U.S. loss carryforwards | $ | — |  |  | N/A
State loss carryforwards | $ | 105,771 |  |  | 2021 - 2035
Reconciliation of Effective Tax Rate on Income or Loss and Statutory Tax Rate | A reconciliation of the effective tax rate on income or loss and the statutory tax rate is as follows:
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Statutory U.S. tax rate | 21.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of U.S. tax benefit | 2.0 | % |  | 2.6 | % |  | 3.1 | %
Federal and State tax credits, net of U.S. tax benefit | (6.0 | )% |  | (4.1 | )% |  | (5.0 | )%
Foreign income taxed at other than U.S. statutory rate | 1.7 | % |  | (0.2 | )% |  | 1.8 | %
Effect of foreign rate changes | (0.1 | )% |  | 0.2 | % |  | 0.5 | %
Foreign tax credit | (0.8 | )% |  | (1.3 | )% |  | (11.3 | )%
Basis differences of intangibles with an indefinite life | — | % |  | 0.1 | % |  | 0.1 | %
Change in deferred tax valuation allowance | 0.5 | % |  | (1.9 | )% |  | (262.4 | )%
Accrual for interest and income taxes related to uncertain tax positions | 1.8 | % |  | 2.2 | % |  | 2.9 | %
Income (loss) from flowthrough entities | 0.6 | % |  | 1.0 | % |  | (0.2 | )%
Meals and entertainment | 0.6 | % |  | 1.1 | % |  | 1.5 | %
Group loss relief | (0.4 | )% |  | (0.6 | )% |  | (1.6 | )%
Stock option compensation | (1.1 | )% |  | (2.0 | )% |  | 0.2 | %
Foreign dividends and earnings inclusion | 0.2 | % |  | 0.7 | % |  | 9.9 | %
Foreign tax withholding | 0.5 | % |  | 0.9 | % |  | 0.6 | %
Executive compensation limitation | 0.7 | % |  | 0.5 | % |  | 0.7 | %
Intra-entity asset transfers | 0.8 | % |  | (6.3 | )% |  | — | %
Enactment of the Tax Cuts and Jobs Act | 0.3 | % |  | 11.1 | % |  | — | %
Foreign Derived Intangible Income Deduction | (2.7 | )% |  | — | % |  | — | %
Other | 0.2 | % |  | (0.2 | )% |  | (2.8 | )%
Effective tax rate | 19.8 | % |  | 38.8 | % |  | (227.0 | )%
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| 2018 |  | 2017 |  | 2016
Balance at January 1 | $ | 9,300 |  |  | $ | 8,256 |  |  | $ | 7,090 |
Additions based on tax positions related to the current year | 1,354 |  |  | 1,061 |  |  | 969 |
Additions for tax positions of prior years | 1,624 |  |  | 233 |  |  | 542 |
Reductions for tax positions of prior years | (148 | ) |  | (192 | ) |  | (80 | )
Settlement of tax audits | — |  |  | (33 | ) |  | — |
Reductions due to lapsed statute of limitations | (298 | ) |  | (25 | ) |  | (265 | )
Balance at December 31 | $ | 11,832 |  |  | $ | 9,300 |  |  | $ | 8,256 |
Major Jurisdictions No Longer Subject to Income Tax Examinations by Tax Authorities | The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is generally no longer subject to income tax examinations by tax authorities in its major jurisdictions as follows:
Major Tax Jurisdiction | Years No Longer Subject to Audit
U.S. federal | 2010 and prior
California (U.S.) | 2008 and prior
Canada | 2010 and prior
Japan | 2011 and prior
South Korea | 2012 and prior
United Kingdom | 2014 and prior

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