Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

Net income before provision for income taxes and equity in losses of investee consists of the following (in thousands):



	Year ended December 31,
	2019		2018		2017
Domestic	$	184,956	$	171,658	$	123,696
Foreign	377,695		294,993		241,103
Net income before provision for income taxes and equity in losses of investee	$	562,651	$	466,651	$	364,799

Schedule of Components of Income Tax Expense (Benefit)

The provision for (benefit from) income taxes consists of the following (in thousands):



	Year Ended December 31,
	2019			2018			2017
Federal
Current	$	76,528		$	35,788		$	91,214
Deferred	1,235			(5,989		)	15,724
	77,763			29,799			106,938
State
Current	9,169			9,568			2,580
Deferred	209			(3,274		)	2,677
	9,378			6,294			5,257
Foreign
Current	28,364			22,753			15,285
Deferred	(3,158		)	(1,123		)	2,682
	25,206			21,630			17,967
Provision for income taxes	$	112,347		$	57,723		$	130,162

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes using the federal statutory income tax rate for 2019, 2018 and 2017 and our effective tax rates are as follows:



	Year Ended December 31,
	2019		2018		2017
U.S. federal statutory income tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal tax benefit	1.7		1.3		1.4
U.S. tax on foreign earnings	1.9		4.1		1.5
Impact of U.S. Tax Cuts and Jobs Act (“TCJA”)	—		2.1		23.1
Impact of differences in foreign tax rates	(5.1	)	(6.7	)	(18.0	)
Impact of expiration of statute of limitations	—		(6.2	)	—
Stock-based compensation	(1.2	)	(3.4	)	(6.3	)
Other items not individually material	1.7		0.2		(1.0	)
Effective tax rate	20.0	%	12.4	%	35.7	%

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2019 and 2018, the significant components of our deferred tax assets and liabilities are (in thousands):



	Year Ended December 31,
	2019			2018
Deferred tax assets:
Net operating loss and capital loss carryforwards	$	18,182		$	25,410
Reserves and accruals	39,264			24,769
Stock-based compensation	8,416			8,571
Deferred revenue	20,909			14,285
Net translation losses	1,589			1,158
Credit carryforwards	1,801			115
	90,161			74,308
Deferred tax liabilities:
Depreciation and amortization	23,817			8,320
Prepaid expenses	1,341			902
Unremitted foreign earnings	—			612
	25,158			9,834
Net deferred tax assets before valuation allowance	65,003			64,474
Valuation allowance	(1,086		)	(251		)
Net deferred tax assets	$	63,917		$	64,223

Schedule of Unrecognized Tax Benefits Rollforward

The changes in the balance of gross unrecognized tax benefits, which exclude interest and penalties, for the year ended December 31, 2019, 2018 and 2017, are as follows (in thousands):



Unrecognized tax benefits as of December 31, 2016	$	46,384
Tax positions related to current year:
Additions for uncertain tax positions	1,819
Tax positions related to prior year:
Additions for uncertain tax positions	1,809
Decreases for uncertain tax positions	(826		)
Settlements with tax authorities	(1,527		)
Reductions due to lapse of applicable statute of limitations	(3		)
Unrecognized tax benefits as of December 31, 2017	47,656
Tax positions related to current year:
Additions for uncertain tax positions	14,519
Tax positions related to prior year:
Additions for uncertain tax positions	80
Reductions due to lapse of applicable statute of limitations	(28,993		)
Unrecognized tax benefits as of December 31, 2018	33,262
Tax positions related to current year:
Additions for uncertain tax positions	19,012
Tax positions related to prior year:
Additions for uncertain tax positions	143
Decreases for uncertain tax positions	(3,783		)
Reductions due to lapse of applicable statute of limitations	(1,984		)
Unrecognized tax benefits as of December 31, 2019	$	46,650