Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Components of income before the provision for income taxes and noncontrolling interest

The components of pretax income are summarized as follows (in millions):


	Years Ended December 31,
	2020		2019		2018
Domestic	$	204.2	$	296.2	$	160.6
Foreign	61.0		118.2		372.1
Total pretax income	$	265.2	$	414.4	$	532.7

Schedule of Components of Provision for Income Taxes

The provision (benefit) for income taxes is summarized as follows (in millions):


	Years Ended December 31,
	2020		2019		2018
Current provision (benefit):
Federal	$	73.4	$	6.2	$	(126.1)
States	20.3		14.4		9.0
Foreign	(21.6)		48.5		38.9
Total current provision (benefit)	72.1		69.1		(78.2)
Deferred (benefit) provision:
Federal	(58.7)		0.8		36.6
States	(6.6)		2.8		2.2
Foreign	0.6		(3.3)		5.2
Total deferred (benefit) provision	(64.7)		0.3		44.0

Total provision (benefit) for income taxes	$	7.4	$	69.4	$	(34.2)

Schedule of Effective Income Tax Rate Reconciliation

The provision (benefit) for income taxes differs from the amount computed by applying the federal statutory tax rate of 21% to pretax income for each of the years presented as follows (in millions):


	Years Ended December 31,
	2020		2019		2018
Expected provision at statutory rate	$	55.7	$	87.0	$	111.9
State taxes, net of federal benefit	8.7		9.4		7.4
Foreign income at different tax rates	(5.9)		1.8		(12.8)
R&D tax credits	(16.4)		(18.8)		(22.1)
Share-based compensation	9.0		3.8		4.7
Non-deductible compensation	3.5		3.3		1.9
Temporary differences not currently benefited	(0.9)		12.9		—


Recognition of previously unrecognized tax benefits	(63.7)		(25.4)		—
Cost sharing adjustment- Altera	20.1		—		—
Lapses in federal statutes of limitations	—		(7.5)		(67.6)
Tax accounting method changes	—		—		(65.4)


Impact of the U.S. Tax Cuts and Jobs Act	—		—		2.8
Other	(2.7)		2.9		5.0
Total provision (benefit) for income taxes	$	7.4	$	69.4	$	(34.2)

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's long-term deferred tax assets and deferred tax liabilities are as follows (in millions):


	As of December 31,
	2020		2019
Deferred tax assets:
Net operating loss carry-forwards	$	48.2	$	27.7
Research and other credit carry-forwards	252.8		236.7
Deferred revenue	43.4		40.0
Share-based compensation	15.0		24.3
Capitalized R&D expenditure	60.5		—
Reserves and accruals not currently deductible	43.5		55.8
Operating lease liabilities	51.3		48.3
Other	10.6		12.0
Total deferred tax assets	525.3		444.8
Valuation allowance	(261.5)		(249.4)
Deferred tax assets, net of valuation allowance	263.8		195.4
Deferred tax liabilities:
Property and equipment basis differences	(20.1)		(39.2)
Purchased intangible assets	(45.6)		(27.8)
Unremitted foreign earnings	(25.5)		(23.7)
Net unrealized gain	(21.1)		(8.7)
Operating lease assets	(44.9)		(41.1)

Total deferred tax liabilities	(157.2)		(140.5)
Net deferred tax assets	$	106.6	$	54.9

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the Company's total gross unrecognized tax benefits was as follows (in millions):


	Years Ended December 31,
	2020		2019		2018
Balance at beginning of year	$	151.3	$	178.1	$	264.5
Tax positions related to current year:
Additions	5.3		5.9		4.3
Tax positions related to prior years:
Additions	18.1		0.8		12.7
Reductions	(52.0)		(3.3)		(33.8)
Settlements	(1.8)		(22.5)		(2.6)
Lapses in statutes of limitations	(4.9)		(7.7)		(67.0)
Balance at end of year	$	116.0	$	151.3	$	178.1