Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

United States and Foreign Components of Income Before Income Taxes

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



	2016		2015			2014
	(In thousands)
United States	$	150,067	$	(3,332	)	$	82,032
Foreign	466,697		315,209			193,674
Total	$	616,764	$	311,877		$	275,706

Components of the Provision for Income Taxes

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



	2016			2015			2014
	(In thousands)
Current:
Federal	$	58,109		$	27,860		$	22,377
Foreign	52,380			43,796			30,878
State	11,267			10,238			7,710
Total current	121,756			81,894			60,965
Deferred:
Federal	(26,886		)	(75,479		)	(26,922		)
Foreign	(3,621		)	(2,746		)	(1,023		)
State	(10,597		)	(11,153		)	(9,037		)
Total deferred	(41,104		)	(89,378		)	(36,982		)
Total provision	$	80,652		$	(7,484	)	$	23,983

Components of Deferred Tax Assets and Liabilities

The following table presents the breakdown of net deferred tax assets:



	December 31,
	2016			2015
	(In thousands)
Deferred tax assets	252,396			215,196
Deferred tax liabilities	(2,578		)	(3,903		)
Total net deferred tax assets	$	249,818		$	211,293

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



	December 31,
	2016			2015
	(In thousands)
Deferred tax assets:
Accruals and reserves	$	44,897		$	36,628
Deferred revenue	97,294			84,631
Tax credits	50,072			41,444
Net operating losses	41,986			50,466
Other	205			7,527
Stock based compensation	42,315			46,582
Transaction costs	11,712			—
Valuation allowance	(14,156		)	(16,673		)
Total deferred tax assets	274,325			250,605
Deferred tax liabilities:
Depreciation and amortization	(3,460		)	(16,113		)
Acquired technology	(6,664		)	(15,825		)
Prepaid expenses	(14,383		)	(7,374		)
Total deferred tax liabilities	(24,507		)	(39,312		)
Total net deferred tax assets	$	249,818		$	211,293

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,
	2016		2015		2014
Federal statutory taxes	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	1.1		0.9		1.2
Foreign operations	(18.6	)	(22.3	)	(13.8	)
Permanent differences	2.2		6.1		3.3
Change in deferred tax liability related to acquired intangibles	(0.6	)	(6.6	)	(5.9	)
Tax credits	(8.4	)	(13.4	)	(13.7	)
Stock option compensation	0.3		0.5		1.9
Change in accruals for uncertain tax positions	2.3		(3.2	)	(0.3	)
Other	(0.2	)	0.6		1.0
	13.1	%	(2.4	)%	8.7	%

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, 2016 and 2015 is as follows (in thousands):



Balance at January 1, 2015	$	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
Additions based on tax positions related to the current year	$	11,588
Additions for tax positions of prior years	4,759
Reductions related to the expiration of statutes of limitations	(1,167		)

Balance at December 31, 2016	$	69,801