Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income before Income Taxes

Income before provision for income taxes was as follows:

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
United States	$	1,719,326	$	845,402	$	144,100
Foreign	342,905		381,056		341,221
Income before income taxes	$	2,062,231	$	1,226,458	$	485,321

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,
	2019			2018			2017
	(in thousands)
Current tax provision:
Federal	$	21,498		$	(22,176	)	$	54,245
State	45,228			(10,234		)	(7,601		)
Foreign	223,328			133,146			88,436
Total current	290,054			100,736			135,080
Deferred tax provision:
Federal	(28,003		)	(37,396		)	(153,963		)
State	(54,507		)	(52,391		)	(52,695		)
Foreign	(12,229		)	4,267			(2,030		)
Total deferred	(94,739		)	(85,520		)	(208,688		)
Provision for (benefit from) income taxes	$	195,315		$	15,216		$	(73,608	)

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,
	2019			2018			2017
	(in thousands)
Expected tax expense at U.S. Federal statutory rates	$	433,059		$	257,556		$	169,860
State income taxes, net of Federal income tax effect	47,909			33,611			6,404
Foreign earnings at other than U.S. rates	56,969			63,519			(87,514		)
Federal and California R&D tax credits	(134,523		)	(140,749		)	(79,868		)
Excess tax benefits on stock-based compensation	(148,693		)	(191,323		)	(157,888		)
Impact of the Tax Cuts and Jobs Act of 2017
Rate Change / Transition Tax	—			(71,516		)	79,077
Tax effects of the Tax Cuts and Jobs Act	(127,534		)	43,099			—
Global corporate structure simplification	35,939			—			—
Nondeductible Officers Compensation	24,111			14,377			28
Other	8,078			6,642			(3,707		)
Provision for (benefit from) income taxes	$	195,315		$	15,216		$	(73,608	)
Effective Tax Rate	9		%	1		%	(15		)%

Deferred Tax Assets and Liabilities

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

	As of December 31,
	2019			2018
	(in thousands)
Deferred tax assets:
Stock-based compensation	$	258,376		$	190,451
Federal and California tax R&D credits	408,715			369,023
Foreign tax credits	137,818			218,026
Accruals and reserves	42,450			36,396
Operating leases	349,208			—
Other	6,510			27,203
Gross deferred tax assets	1,203,077			841,099
Depreciation & amortization	(80,921		)	(151,678		)
Operating leases	(329,168		)	—
Gross deferred tax liabilities	(410,089		)	(151,678		)
Valuation allowance	(134,782		)	(124,996		)
Net deferred tax assets	$	658,206		$	564,425

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, 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
Increases related to tax positions taken during prior periods	925
Decreases related to tax positions taken during prior periods	(417		)
Increases related to tax positions taken during the current period	18,826
Decreases related to expiration of statute of limitations	(100		)
Balances as of December 31, 2019	$	66,768