Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Taxes

Income before income taxes and the provision for income taxes consisted of the following:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
United States	$	16,035	$	32,237	$	36,461
International		13,536		10,967		9,763
Total	$	29,571	$	43,204	$	46,224

Schedule of Components of Income Tax Expense (Benefit)

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Current:
U.S. Federal	$	4,761		$	(587	)	$	25,733
State		791			(2,338	)		2,435
Foreign		(386	)		4,267			1,545
		5,166			1,342			29,713
Deferred:
U.S. Federal		(574	)		20,930			27,936
State		104			2,514			190
Foreign		(916	)		1,092			(482	)
		(1,386	)		24,536			27,644
Total	$	3,780		$	25,878		$	57,357

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets consisted of the following:

	Year Ended December 31,
	2019			2018
	(In thousands)
Deferred Tax Assets:
Accruals and allowances	$	20,743		$	20,765
Net operating loss carryforwards		1,267			1,673
Stock-based compensation		6,381			5,734
Deferred rent		—			1,296
Operating lease liability		6,456			—
Deferred revenue		1,449			1,100
Tax credit carryforwards		896			1,661
Acquired intangibles		31,708			31,902
Depreciation and amortization		1,639			866
Other		1,080			—
Total deferred tax assets		71,619			64,997
Deferred Tax Liabilities:
Right of use asset		(5,218	)		—
Other		(1,053	)		(706	)
Total deferred tax liabilities		(6,271	)		(706	)
Valuation Allowance(1)		(6,418	)		(6,734	)
Net deferred tax assets	$	58,930		$	57,557

^{(1) Valuation allowance is presented gross. The valuation allowance net of the federal tax effect is $5.2 million and $5.4 million for the years ended December 31, 2019 and 2018, respectively.}

Schedule of Effective Income Tax Rate Reconciliation

The effective tax rate differs from the applicable U.S. statutory federal income tax rate as follows:

	Year Ended December 31,
	2019			2018			2017
Tax at federal statutory rate		21.0	%		21.0	%		35.0	%
State, net of federal benefit		2.4	%		1.5	%		1.0	%
Impact of international operations		(0.8	%)		1.9	%		(8.8	)%
Stock-based compensation		10.7	%		(0.3	)%		(3.9	)%
Tax credits		(5.9	)%		(2.6	)%		(2.0	)%
Valuation allowance		0.9	%		1.4	%		—	%
Impact of the Tax Act		—	%		(15.4	)%		104.6	%
Base Erosion Anti-Abuse Tax		7.2	%		—	%		—	%
Write-off of future tax benefits related to Arlo		—	%		52.2	%		—	%
Transaction costs		(2.5	%)		—	%		—	%
Recognition of previously unrecognized tax benefits		(20.6	%)		—	%		—	%
Others		0.4	%		0.2	%		(1.8	)%
Provision for income taxes		12.8	%		59.9	%		124.1	%

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UTB”) is as follows:

	Federal, State, and Foreign Tax
	(In thousands)
Balance as of December 31, 2016	$	12,965
Additions based on tax positions related to the current year		938
Additions for tax positions of prior years		32
Reductions for tax positions of prior years		(1,477	)
Reductions due to lapse of applicable statutes		(899	)
Adjustments due to foreign exchange rate movement		1,008
Balance as of December 31, 2017	$	12,567
Additions based on tax positions related to the current year		637
Additions for tax positions of prior years		280
Reductions for tax positions of prior years		(116	)
Reductions due to lapse of applicable statutes		(999	)
Adjustments due to foreign exchange rate movement		(386	)
Balance as of December 31, 2018	$	11,983
Additions based on tax positions related to the current year		385
Additions for tax positions of prior years		996
Settlements		(705	)
Reductions for tax positions of prior years		(3,440	)
Reductions due to lapse of applicable statutes		(609	)
Adjustments due to foreign exchange rate movement		459
Balance as of December 31, 2019	$	9,069