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INCOME TAXES (Tables)
12 Months Ended
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