INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

The domestic and foreign components of income (loss) before income taxes are as follows (in thousands):


	Year Ended December 31,
			2019			2018			2017
Domestic	$	456,335		$	44,538		$	(10,900)
Foreign	(78,122)			(80,665)			(51,764)
Income (loss) before income taxes	$	378,213		$	(36,127)		$	(62,664)

The components of the provision for income taxes are as follows (in thousands):


	Year Ended December 31,
			2019			2018			2017
Current:
Federal	$	114		$	(4)		$	(1,192)
State	930			752			739
Foreign	3,099			2,224			1,987
Total current provision for income taxes	4,143			2,972			1,534
Deferred:
Federal	(777)			(404)			(1,169)
State	(399)			35			57
Foreign	(200)			(277)			(273)
Total deferred provision for income taxes	(1,376)			(646)			(1,385)
Total provision for income taxes	$	2,767		$	2,326		$	149

The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate:


	Balance at December 31,
			2019			2018			2017
Tax at federal statutory rate	21.0	%		21.0	%		34.0	%
State taxes, net of federal benefit	0.1			(1.1)			(0.4)
Foreign rate differential	1.4			(14.7)			(14.9)
Non-deductible meals	0.3			(3.4)			(0.3)
Other non-deductible expenses	1.5			(1.7)			(0.7)
Credits	(13.9)			164.8			41.5
Other items	(0.5)			2.3			(1.2)
Change in valuation allowance	34.9			(718.5)			(119.5)
Impact of U.S. tax reform	—			—			(209.1)
Share-based compensation	(45.8)			549.0			243.5
Change in uncertain tax positions	0.5			(4.1)			(2.4)
Termination of warrant	—			—			29.3
Sale of Caviar business line	1.2			—			—
Total	0.7	%		(6.4)	%		(0.2)	%

The tax effects of temporary differences and related deferred tax assets and liabilities are as follows (in thousands):


	Balance at December 31,
			2019			2018			2017
Deferred tax assets:
Capitalized costs	$	23,708		$	30,131		$	35,608
Accrued expenses	33,044			31,494			23,553
Net operating loss carryforwards	575,245			485,562			244,197
Tax credit carryforwards	183,977			133,275			60,567
Property, equipment and intangible assets	—			—			7,390
Share-based compensation	38,427			38,265			35,728
Deferred Interest	4,072			8,290			—
Other	3,424			105			2,519
Operating Lease, net	5,761			—			—
Total deferred tax assets	867,658			727,122			409,562
Valuation allowance	(859,564)			(719,040)			(409,043)
Total deferred tax assets, net of valuation allowance	8,094			8,082			519
Deferred tax liabilities:
Property, equipment and intangible assets	(6,862)			(7,361)			—
Indefinite-lived intangibles	(253)			(275)			(644)
Total deferred tax liabilities	(7,115)			(7,636)			(644)
Net deferred tax assets (liabilities)	$	979		$	446		$	(125)

A reconciliation of the beginning and ending amount of unrecognized tax benefit is presented below (in thousands):


	Year Ended December 31,
			2019			2018			2017
Balance at the beginning of the year	$	198,540		$	70,799		$	92,134
Gross increases and decreases related to prior period tax positions	(11,571)			513			—
Gross increases and decreases related to current period tax positions	30,676			119,261			4,193


Reductions related to lapse of statute of limitations	(149)			(142)			(91)
Gross increases and decreases related to U.S. tax reform	—			—			(25,437)
Gross increases and decreases related to acquisition	78			8,109			—
Balance at the end of the year	$	217,574		$	198,540		$	70,799