Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Summary of Components of Income Before Income Taxes

The components of income before income taxes consist of the following:

	Year ended December 31,
	2019			2018			2017
Domestic	$	(16,685	)	$	(24,442	)	$	4,626
Foreign	99,785			84,812			80,408
	$	83,100		$	60,370		$	85,034

Summary of Income Tax Expense

The income tax expense consists of the following:

	Year ended December 31,
	2019			2018			2017
Current provision/(benefit):
Domestic	$	10,823		$	(13,249	)	$	17,407
Foreign	16,694			17,271			18,008
	$	27,517		$	4,022		$	35,415
Deferred provision/(benefit):
Domestic	$	(13,912	)	$	(1,999	)	$	2,618
Foreign	1,567			1,374			(1,887		)
	$	(12,345	)	$	(625	)	$	731
Income tax expense	$	15,172		$	3,397		$	36,146

Schedule of Income Tax (Benefit) Recognized in Other Comprehensive Income

Income taxes recognized in other comprehensive income are as follows:

	Year ended December 31,
	2019			2018			2017
Deferred taxes (expense)/benefit :
Unrealized gain/(loss) on cash flow hedges	$	(391	)	$	4,803		$	(3,711	)
Retirement benefits	328			(21		)	(268		)
Total Income tax (expense)/benefit recognized in other comprehensive income	$	(63	)	$	4,782		$	(3,979	)

Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes

The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows:

	Year ended December 31,
	2019			2018			2017
Expected tax expense	$	17,451		$	12,678		$	29,762
Change in valuation allowance	—			—			(21		)
Impact of tax holiday	(5,920		)	(5,448		)	(4,396		)
Foreign tax rate differential	1,660			5,014			(2,616		)
Deferred tax provision/(benefit)	3,026			(3,915		)	(1,887		)
Unrecognized tax benefits and interest	174			(88		)	(3,905		)
State taxes, net of Federal taxes	2,137			2,201			339
Non-deductible expenses	1,329			3,066			825
US Tax Reform Act impact	—			176			29,185
Excess tax benefit on stock-based compensation	(2,306		)	(7,227		)	(9,797		)
Research & Development credit	(1,650		)	(1,500		)	(844		)
Prior period items	(143		)	(1,466		)	—
Others	(586		)	(94		)	(499		)
Tax expense	$	15,172		$	3,397		$	36,146

Summary of Components of Deferred Tax Balances

The components of the deferred tax balances as of December 31, 2019 and 2018 are as follows:

	As of
	December 31, 2019			December 31, 2018
Deferred tax assets:
Depreciation and amortization expense	$	12,319		$	3,731
Stock-based compensation	9,313			8,614
Accrued employee costs and other expenses	9,805			3,596
Net operating loss carry forward	2,896			1,113
Unrealized exchange loss	1,136			6,671
Deferred rent	4,503			2,255
Others	745			1,380
	$	40,717		$	27,360
Valuation allowance	(202		)	(99		)
Deferred tax assets	$	40,515		$	27,261
Deferred tax liabilities:
Unrealized exchange gain	$	505		$	115
Intangible assets	20,696			19,289
Unamortized discount on convertible senior notes	3,395			4,105
Others	5,030			5,595
Deferred tax liabilities	$	29,626		$	29,104
Net deferred tax assets/(liabilities)	$	10,889		$	(1,843	)

Summary of Activity Related to Gross Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017.

	2019			2018			2017
Balance as of January 1	$	804		$	824		$	3,087
Increases related to prior year tax positions	69			—			—
Decreases related to prior year tax positions	(156		)	(320		)	(2,520		)
Increases related to current year tax positions	330			300			169
Effect of exchange rate changes	—			—			88
Balance as of December 31	$	1,047		$	804		$	824