Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

United States and Foreign Components of Income Before Income Taxes

The United States and foreign components of income before income taxes are as follows:



	2015			2014		2013
	(In thousands)
United States	$	(3,332	)	$	82,032	$	142,085
Foreign	315,209			193,674		245,805
Total	$	311,877		$	275,706	$	387,890

Components of the Provision for Income Taxes

The components of the provision for income taxes are as follows:



	2015			2014			2013
	(In thousands)
Current:
Federal	$	27,860		$	22,377		$	51,389
Foreign	43,796			30,878			37,221
State	10,238			7,710			11,605
Total current	81,894			60,965			100,215
Deferred:
Federal	(75,479		)	(26,922		)	(34,897		)
Foreign	(2,746		)	(1,023		)	(8,413		)
State	(11,153		)	(9,037		)	(8,538		)
Total deferred	(89,378		)	(36,982		)	(51,848		)
Total provision	$	(7,484	)	$	23,983		$	48,367

Components of Deferred Tax Assets and Liabilities

The following table presents the breakdown between current and non-current net deferred tax assets:



	December 31,
	2015			2014
	(In thousands)
Deferred tax assets - current ⁽¹⁾	$	—		$	45,892
Deferred tax liabilities - current ⁽¹⁾	—			(1,053		)
Deferred tax assets- non current	215,196			128,198
Deferred tax liabilities - non current	(3,903		)	(8,722		)
Total net deferred tax assets	$	211,293		$	164,315

⁽¹⁾

During the year ended December 31, 2015, the Company elected to early adopt an accounting standard update on income taxes on a prospective basis. The new authoritative guidance requires deferred tax liabilities and assets along with any related valuation allowance to be classified as noncurrent on the consolidated balance sheet. The December 31, 2014 consolidated balance sheet was not retrospectively adjusted.

The significant components of the Company’s deferred tax assets and liabilities consisted of the following:



	December 31,
	2015			2014
	(In thousands)
Deferred tax assets:
Accruals and reserves	$	36,628		$	27,105
Deferred revenue	84,631			65,541
Tax credits	41,444			43,211
Net operating losses	50,466			75,318
Other	7,527			12,878
Stock based compensation	46,582			63,993
Valuation allowance	(16,673		)	(15,167		)
Total deferred tax assets	250,605			272,879
Deferred tax liabilities:
Depreciation and amortization	(16,113		)	(16,835		)
Acquired technology	(15,825		)	(82,357		)
Prepaid expenses	(7,374		)	(9,372		)
Total deferred tax liabilities	(39,312		)	(108,564		)
Total net deferred tax assets	$	211,293		$	164,315

Reconciliation of The Company's Effective Tax Rate to The Statutory Federal Rate

A reconciliation of the Company’s effective tax rate to the statutory federal rate is as follows:



	Year Ended December 31,
	2015		2014		2013
Federal statutory taxes	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	0.9		1.2		1.2
Foreign operations	(22.3	)	(13.8	)	(14.8	)
Permanent differences	6.1		3.3		(1.1	)
Change in deferred tax liability related to acquired intangibles	(6.6	)	(5.9	)	—
Tax credits	(13.4	)	(13.7	)	(10.9	)
Stock option compensation	0.5		1.9		0.4
Change in accruals for uncertain tax positions	(3.2	)	(0.3	)	3.3
Other	0.6		1.0		(0.6	)
	(2.4	)%	8.7	%	12.5	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2015 and 2014 is as follows (in thousands):



Balance at January 1, 2014	$	63,792
Additions based on tax positions related to the current year	5,711
Additions for tax positions of prior years	12,998
Reductions related to the expiration of statutes of limitations	(4,118		)
Settlements	(11,465		)

Balance at December 31, 2014	66,918
Additions based on tax positions related to the current year	6,613
Additions for tax positions of prior years	4,675
Reductions related to the expiration of statutes of limitations	(9,521		)
Settlements	(14,064		)

Balance at December 31, 2015	$	54,621