Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019		2018
	(In thousands)
United States	$	42,124	$	16,035	$	32,237
International		28,679		13,536		10,967
Total	$	70,803	$	29,571	$	43,204

Schedule of Components of Income Tax Expense (Benefit)

	Year Ended December 31,
	2020			2019			2018
	(In thousands)
Current:
U.S. Federal	$	12,913		$	4,761		$	(587	)
State		3,587			791			(2,338	)
Foreign		5,178			(386	)		4,267
		21,678			5,166			1,342
Deferred:
U.S. Federal		(3,052	)		(574	)		20,930
State		(6,408	)		104			2,514
Foreign		292			(916	)		1,092
		(9,168	)		(1,386	)		24,536
Total	$	12,510		$	3,780		$	25,878

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets consisted of the following:

	Year Ended December 31,
	2020			2019
	(In thousands)
Deferred Tax Assets:
Accruals and allowances	$	25,041		$	20,743
Net operating loss carryforwards		1,352			1,267
Stock-based compensation		5,374			6,381
Operating lease liability		5,303			6,456
Deferred revenue		641			1,449
Tax credit carryforwards		—			896
Acquired intangibles		33,860			31,708
Depreciation and amortization		1,651			1,639
Other		3,285			1,080
Total deferred tax assets		76,507			71,619
Deferred Tax Liabilities:
Right of use asset		(4,264	)		(5,218	)
Other		(987	)		(1,053	)
Total deferred tax liabilities		(5,251	)		(6,271	)
Valuation Allowance(1)		(2,933	)		(6,418	)
Net deferred tax assets	$	68,323		$	58,930

⁽¹⁾ Valuation allowance is presented gross. The valuation allowance net of the federal tax effect was $2.9 million and $5.2 million for the years ended December 31, 2020 and 2019, 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,
	2020			2019			2018
Tax at federal statutory rate		21.0	%		21.0	%		21.0	%
State, net of federal benefit		2.9	%		2.4	%		1.5	%
Impact of international operations		(5.0	%)		(0.8	)%		1.9	%
Stock-based compensation		5.4	%		10.7	%		(0.3	)%
Tax credits		(2.3	)%		(5.9	)%		(2.6	)%
Valuation allowance		1.8	%		0.9	%		1.4	%
State Valuation Allowance Release		(5.8	)%		—	%		—	%
Impact of the Tax Act		—	%		—	%		(15.4	)%
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		0.3	%		(20.6	)%		—	%
Others		(0.6	%)		0.4	%		0.2	%
Provision for income taxes		17.7	%		12.8	%		59.9	%

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, 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
Additions based on tax positions related to the current year		442
Additions for tax positions of prior years		253
Reductions due to lapse of applicable statutes		(744	)
Adjustments due to foreign exchange rate movement		522
Balance as of December 31, 2020	$	9,542