Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

United States and Foreign Components of Income Before Income Taxes

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

	2019		2018		2017
	(In thousands)
United States	$	31,932	$	174,519	$	78,897
Foreign	477,568		454,936		471,449
Total	$	509,500	$	629,455	$	550,346

Components of the Provision for Income Taxes

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

	2019		2018		2017
	(In thousands)
Current:
Federal	$	7,718	$	(19,461)	$	374,602
Foreign	63,205		70,146		56,526
State	1,697		16,259		3,075
Total current	72,620		66,944		434,203
Deferred:
Federal	(35,932)		1,899		52,842
Foreign	(209,010)		(14,804)		(5,468)
State	9		(251)		46,784
Total deferred	(244,933)		(13,156)		94,158
Total provision	$	(172,313)	$	53,788	$	528,361

Components of Deferred Tax Assets and Liabilities

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

	December 31,
	2019		2018
	(In thousands)
Deferred tax assets	$	361,814	$	136,998
Deferred tax liabilities	(2,630)		(15,075)
Total net deferred tax assets	$	359,184	$	121,923

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

	December 31,
	2019		2018
	(In thousands)
Deferred tax assets:
Accruals and reserves	$	53,465	$	27,022
Deferred revenue	58,977		62,085
Tax credits	107,046		81,720
Net operating losses	56,156		54,747
Stock based compensation	40,182		30,936
Swiss tax reform	245,554		—
Valuation allowance	(128,388)		(85,400)
Total deferred tax assets	432,992		171,110
Deferred tax liabilities:
Acquired technology	(3,521)		(15,681)
Depreciation and amortization	(34,653)		(5,044)
Prepaid expenses	(29,775)		(23,213)
Other	(5,859)		(5,249)
Total deferred tax liabilities	(73,808)		(49,187)
Total net deferred tax assets	$	359,184	$	121,923

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,
	2019		2018		2017
Federal statutory taxes	21.0	%	21.0	%	35.0	%
State income taxes, net of federal tax benefit	0.3		0.7		2.1
Foreign operations	(5.8)		(5.4)		(20.0)
Permanent differences	3.0		2.0		2.6
The 2017 Tax Act - tax rate impact on deferred taxes	—		(0.7)		11.8
The 2017 Tax Act - transition tax	—		(3.5)		66.3
Tax reform - Switzerland	(48.2)		—		—
Change in valuation allowance reserve	7.4		0.4		8.8
Change in deferred tax liability related to acquired intangibles	—		(0.1)		0.3
Tax credits	(8.4)		(5.8)		(7.6)
Stock-based compensation	(1.9)		(1.9)		(3.6)
Change in accruals for uncertain tax positions	(1.1)		1.8		0.3
Other	(0.1)		—		—
	(33.8)	%	8.5	%	96.0	%

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, 2019 and 2018 is as follows (in thousands):

Balance at December 31, 2017	$	77,849
Additions based on tax positions related to the current year	10,168
Additions for tax positions of prior years	10,325
Reductions related to the expiration of statutes of limitations	(8,436)
Balance at December 31, 2018	89,906
Additions based on tax positions related to the current year	11,244
Additions for tax positions of prior years	3,414
Reductions related to the expiration of statutes of limitations	(20,098)
Balance at December 31, 2019	$	84,466