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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following is a geographical breakdown of income (loss) before the provision for income taxes:
| Year Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
| (In thousands) |  |  |  |  |
Domestic | $ | 81,641 |  |  | $ | 46,528 |  |  | $ | 25,280 |
Foreign | (7,708) |  |  | (10,912) |  |  | (20,768) |
Income (loss) before provision for income taxes | $ | 73,933 |  |  | $ | 35,616 |  |  | $ | 4,512 |
The provision for (benefit from) income taxes consisted of the following:
| Year Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
| (In thousands) |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 8,006 |  |  | $ | 1,404 |  |  | $ | 2,430 |
State | 4,549 |  |  | 1,832 |  |  | 1,852 |
Foreign | 1,240 |  |  | 768 |  |  | 745 |
Total current income taxes | 13,795 |  |  | 4,004 |  |  | 5,027 |
Deferred: |  |  |  |  |
Federal | (1,292) |  |  | 5,455 |  |  | (19,822) |
State | (1,609) |  |  | (909) |  |  | (3,430) |
Foreign | 1,701 |  |  | (10,663) |  |  | (7,781) |
Total deferred income taxes | (1,200) |  |  | (6,117) |  |  | (31,033) |
Total provision for (benefit from) income taxes | $ | 12,595 |  |  | $ | (2,113) |  |  | $ | (26,006) |
The provision for (benefit from) income taxes differs from the amount computed by applying the statutory federal tax rate as follows:
| Year Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
| (In thousands) |  |  |  |  |
U.S. federal tax provision at statutory rate | $ | 15,525 |  |  | $ | 7,479 |  |  | $ | 1,579 |
State taxes | 2,258 |  |  | 651 |  |  | 224 |
Non-deductible expenses | 2,898 |  |  | 1,424 |  |  | 1,373 |
Uncertain tax positions | (2,472) |  |  | (412) |  |  | (295) |
Share-based compensation tax benefit | (7,892) |  |  | (4,005) |  |  | (5,887) |
Research tax credits | (3,805) |  |  | (3,230) |  |  | (3,233) |
Domestic production deduction | — |  |  | — |  |  | (621) |
Restructuring impact | 7,432 |  |  | (4,205) |  |  | — |
Foreign derived intangible income deduction | (449) |  |  | (349) |  |  | — |
Foreign rate differential | (1,424) |  |  | 561 |  |  | 938 |
One-time impact of the Tax Act | — |  |  | — |  |  | (20,005) |
Other | 524 |  |  | (27) |  |  | (79) |
Total provision for (benefit from) income taxes | $ | 12,595 |  |  | $ | (2,113) |  |  | $ | (26,006) |
Due to continuing global operational centralization activities during the year ended December 31, 2019, the Company recognized gain on the sale of certain intellectual property rights by Aesynt B.V. to Omnicell, Inc. and by Mach4 Automatisierungstechnik GmbH to Omnicell, Inc., which resulted in a tax expense, net of tax benefit, of $7.4 million. As a result of global operational centralization activities during the year ended December 31, 2018, the Company recognized $4.2 million of tax benefit associated with making a check-the-box election to treat Aesynt Holding Coöperatief U.A. (Netherlands) as a U.S. disregarded entity beginning in the first quarter of 2018. Significant components of the Company’s deferred tax assets (liabilities) were as follows:
| December 31, |  |
| 2019 |  | 2018
| (In thousands) |  |
Deferred tax assets (liabilities): |  |  |
Deferred revenues | $ | 4,129 |  |  | $ | 2,943 |
Share-based compensation | 6,483 |  |  | 5,531 |
Inventory related items | 3,507 |  |  | 2,874 |
Tax credit carryforwards | 13,472 |  |  | 7,413 |
Reserves and accruals | 5,712 |  |  | 5,983 |
Loss carryforwards | 9,484 |  |  | 17,515 |
Lease liability | 15,471 |  |  | — |
Other, net | 543 |  |  | 81 |
Gross deferred tax assets | 58,801 |  |  | 42,340 |
Valuation allowance | (1,186) |  |  | (1,256) |
Total net deferred tax assets | 57,615 |  |  | 41,084 |
Intangibles | (18,941) |  |  | (32,304) |
Depreciation and amortization | (35,941) |  |  | (22,504) |
Prepaid expenses | (13,395) |  |  | (12,563) |
Right-of-use assets | (14,286) |  |  | — |
Total deferred tax liabilities | (82,563) |  |  | (67,371) |
Net deferred tax liabilities | $ | (24,948) |  |  | $ | (26,287) |
Deferred income tax assets (liabilities) are provided for temporary differences that will result in future tax deductions or future taxable income, as well as the future benefit of tax credit carryforwards. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. On the basis of this evaluation, as of December 31, 2019, $1.2 million of valuation allowance was recorded on certain foreign net operating losses carried forward, as the Company believes that such deferred tax assets are not more likely than not to be realized. As of December 31, 2019, the Company had $3.2 million of federal net operating loss carryforwards expiring 2037, $7.4 million of state net operating loss carryforwards expiring at various dates beginning 2023, and $29.5 million of foreign net operating loss carryforwards expiring at various dates beginning 2024. For the year ended December 31, 2019, the Company did not generate a net operating loss. For income tax purposes, the Company has federal and California research tax credits carryforwards of $3.1 million and $15.0 million, respectively. Federal research tax credit carryforwards from prior years will begin to expire in 2035. California credits are available indefinitely to reduce cash taxes payable. It is the Company's practice and intention to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of December 31, 2019, the Company has not made a provision for U.S. federal income, withholding, and state income taxes on the outside basis difference related to certain foreign subsidiaries because earnings are intended to be indefinitely reinvested in operations outside the U.S. The Company files income tax returns in the United States and various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including major jurisdictions such as the United States, Germany, Italy, Netherlands, and the United Kingdom. With few exceptions, as of December 31, 2019, the Company was no longer subject to U.S., state, and foreign examination for years before 2016, 2015, and 2015, respectively. The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the three years ended December 31, 2019 was as follows:
| (In thousands) |
Balance as of December 31, 2016 | $ | 11,616 |
Increases related to tax positions taken during a prior period | 503 |
Decreases related to tax positions taken during the prior period | (1,782) |
Increases related to tax positions taken during the current period | 805 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (401) |
Balance as of December 31, 2017 | 10,741 |
Increases related to tax positions taken during a prior period | 19 |
Decreases related to tax positions taken during the prior period | (1,257) |
Increases related to tax positions taken during the current period | 870 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (412) |
Balance as of December 31, 2018 | 9,961 |
Increases related to tax positions taken during a prior period | 10 |
Decreases related to tax positions taken during the prior period | (6) |
Increases related to tax positions taken during the current period | 9,282 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (2,472) |
Balance as of December 31, 2019 | $ | 16,775 |
The total amounts of gross unrecognized tax benefit that, if realized, would favorably affect the Company's effective income tax rate in future periods, was $16.8 million as of December 31, 2019. The Company recognizes interest and/or penalties related to uncertain tax positions in interest and other income (expense), net in Consolidated Statements of Operations, accruing $0.5 million, $0.5 million, and $0.3 million for the years ended December 31, 2019, 2018, and 2017, respectively. Accrued interest and penalties are included within other long-term liabilities on the Consolidated Balance Sheets. The combined amount of cumulative accrued interest and penalties was approximately $1.0 million, $1.4 million, and $1.4 million for the years ended December 31, 2019, 2018, and 2017, respectively. The Company does not believe there will be any significant changes in its unrecognized tax positions over the next twelve months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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