Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Income before Income Tax, Domestic and Foreign


c.			Loss before taxes on income is comprised as follows:


	Year ended
	December 31,
	2020		2019		2018
Domestic	$	(80,086)	$	(82,007)	$	(25,557)
Foreign	(5,812)		5,631		(2,608)
	$	(85,898)	$	(76,376)	$	(28,165)

Schedule of Components of Income Tax Expense (Benefit)


d.			Taxes on income (loss) are comprised as follows:


	Year ended
	December 31,
	2020		2019		2018
Current:
Domestic:
Federal	$	90	$	665	$	—
State	128		13		169
Foreign	8,854		1,619		1,498
Total current income tax	$	9,072	$	2,297	$	1,667

Deferred:
Federal	$	8	$	—	$	—
State	1		—		—
Foreign	(969)		91		(1,254)
Total deferred income tax	$	(960)	$	91	$	(1,254)
Income tax expense	$	8,112	$	2,388	$	413

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows:


	December 31,
	2020		2019
Deferred tax assets:
Carry forward losses and credits	$	53,221	$	36,092
Deferred revenues	13,054		13,953
Accrued payroll, commissions, vacation	3,808		2,666
Equity compensation	10,348		6,220
Allowance for doubtful accounts	1,287		978
Accrued severance pay	312		340
Operating lease liability	11,302		12,244
Other	963		532
Deferred tax assets before valuation allowance	94,295		73,025
Valuation allowance	(77,542)		(62,379)
Deferred tax assets	$	16,753	$	10,646

Deferred tax liability:
Accrued compensation and other accrued expense	$	(48)	$	(187)
Operating lease right-of-use asset	(8,780)		(10,291)
Convertible senior notes, net	(6,797)		—
Deferred tax liability	$	(15,625)	$	(10,478)
Net deferred tax asset	$	1,128	$	168

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense as reported in the consolidated statements of operations is as follows:


	Year ended December 31,
	2020			2019			2018
Loss before taxes, as reported in the consolidated statements of operations	$	(85,898)		$	(76,376)		$	(28,165)
Statutory tax rate	21		%	21		%	21		%

Theoretical tax benefits on the above amount at the US statutory tax rate	$	(18,039)		$	(16,039)		$	(5,915)
Income tax at rate other than the U.S. statutory tax rate	4,845			(2,508)			692
Tax advances and non-deductible expenses including equity based compensation expenses	934			(115)			(7,623)
Operating losses and other temporary differences for which valuation allowance was provided	22,189			22,818			15,826
State tax	(2,872)			(3,436)			(1,221)
Impact of rate change	—			401			—
Change in tax reserve for uncertain tax positions	1,489			1,247			(1,728)
Other individually immaterial income tax items	(434)			20			382
Actual tax expense	$	8,112		$	2,388		$	413

Schedule of Unrecognized Tax Benefits Roll Forward


g.			A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the years ended December 31, 2020 and 2019 are as follows:


Gross unrecognized tax benefits as of January 1, 2019	$	1,954
Increase in tax position for current year	1,545
Increase in tax position for prior years	387

Decrease for lapse of statute of limitations/settlements	(685)
Gross unrecognized tax benefits as of December 31, 2019	$	3,201
Increase in tax position for current year	1,787
Increase in tax position for prior years	979
Decrease in tax position for prior years	(171)
Decrease for lapse of statute of limitations/settlements	(1,106)
Gross unrecognized tax benefits as of December 31, 2020	$	4,690