Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Income before Income Taxes

Income before provision for income taxes was as follows:

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
United States	$	845,402	$	144,100	$	188,078
Foreign	381,056		341,221		72,429
Income before income taxes	$	1,226,458	$	485,321	$	260,507

Components of Provision for Income Taxes

The components of provision for (benefit from) income taxes for all periods presented were as follows:

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Current tax provision:
Federal	$	(22,176	)	$	54,245		$	54,315
State	(10,234		)	(7,601		)	5,790
Foreign	133,146			88,436			60,571
Total current	100,736			135,080			120,676
Deferred tax provision:
Federal	(37,396		)	(153,963		)	(24,383		)
State	(52,391		)	(52,695		)	(14,080		)
Foreign	4,267			(2,030		)	(8,384		)
Total deferred	(85,520		)	(208,688		)	(46,847		)
Provision for (benefit from) income taxes	$	15,216		$	(73,608	)	$	73,829

Reconciliation of Provision for Income Taxes

A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate to income before income taxes is as follows:

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Expected tax expense at U.S. Federal statutory rates	$	257,556		$	169,860		$	91,179
State income taxes, net of Federal income tax effect	33,611			6,404			7,261
Foreign earnings at other than U.S. rates	63,519			(87,514		)	14,639
Federal and California R&D tax credits	(140,749		)	(79,868		)	(41,144		)
Excess tax benefits on stock-based compensation	(191,323		)	(157,888		)	—
Impact of the Tax Cuts and Jobs Act of 2017
Rate Change / Transition Tax	(71,516		)	79,077			—
U.S. Minimum Tax on Foreign Entities	43,099			—			—
Nondeductible Officers Compensation	14,377			28			28
Other	6,642			(3,707		)	1,866
Provision for (benefit from) income taxes	$	15,216		$	(73,608	)	$	73,829
Effective Tax Rate	1		%	(15		)%	28		%

Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows:

	As of December 31,
	2018			2017
	(in thousands)
Deferred tax assets:
Stock-based compensation	$	190,451		$	149,367
Depreciation and amortization	(151,678		)	(70,382		)
Federal and California tax R&D credits	369,023			260,686
Foreign tax credits	218,026			102,242
Accruals and reserves	36,396			34,170
Other	27,203			51,614
Gross deferred tax assets	689,421			527,697
Valuation allowance	(124,996		)	(49,431		)
Net deferred tax assets	$	564,425		$	478,266

Summary of Changes in Unrecognized Tax Benefits

The aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):

Balances as of December 31, 2016	$	19,739
Decreases related to tax positions taken during prior periods	(3,226		)
Increases related to tax positions taken during the current period	26,389
Balances as of December 31, 2017	42,902
Increases related to tax positions taken during prior periods	4,486
Decreases related to tax positions taken during prior periods	(17,922		)
Increases related to tax positions taken during the current period	18,068
Balances as of December 31, 2018	$	47,534