Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Geographical Breakdown of Income (Loss) before the Provision for Income Taxes

The following is a geographical breakdown of income (loss) before the provision for income taxes:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Domestic	$	81,641	$	46,528	$	25,280
Foreign	(7,708)		(10,912)		(20,768)
Income (loss) before provision for income taxes	$	73,933	$	35,616	$	4,512

Provision For (Benefit From) Income Taxes

The provision for (benefit from) income taxes consisted of the following:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Current:
Federal	$	8,006	$	1,404	$	2,430
State	4,549		1,832		1,852
Foreign	1,240		768		745
Total current income taxes	13,795		4,004		5,027
Deferred:
Federal	(1,292)		5,455		(19,822)
State	(1,609)		(909)		(3,430)
Foreign	1,701		(10,663)		(7,781)
Total deferred income taxes	(1,200)		(6,117)		(31,033)
Total provision for (benefit from) income taxes	$	12,595	$	(2,113)	$	(26,006)

Difference between the Provision For (Benefit From) Income Taxes Compared to Income Taxes Computed at the Statutory Federal Tax Rate

The provision for (benefit from) income taxes differs from the amount computed by applying the statutory federal tax rate as follows:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
U.S. federal tax provision at statutory rate	$	15,525	$	7,479	$	1,579
State taxes	2,258		651		224
Non-deductible expenses	2,898		1,424		1,373
Uncertain tax positions	(2,472)		(412)		(295)
Share-based compensation tax benefit	(7,892)		(4,005)		(5,887)
Research tax credits	(3,805)		(3,230)		(3,233)
Domestic production deduction	—		—		(621)
Restructuring impact	7,432		(4,205)		—
Foreign derived intangible income deduction	(449)		(349)		—
Foreign rate differential	(1,424)		561		938
One-time impact of the Tax Act	—		—		(20,005)
Other	524		(27)		(79)
Total provision for (benefit from) income taxes	$	12,595	$	(2,113)	$	(26,006)

Significant Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) were as follows:

	December 31,
	2019		2018
	(In thousands)
Deferred tax assets (liabilities):
Deferred revenues	$	4,129	$	2,943
Share-based compensation	6,483		5,531
Inventory related items	3,507		2,874
Tax credit carryforwards	13,472		7,413
Reserves and accruals	5,712		5,983
Loss carryforwards	9,484		17,515
Lease liability	15,471		—
Other, net	543		81
Gross deferred tax assets	58,801		42,340
Valuation allowance	(1,186)		(1,256)
Total net deferred tax assets	57,615		41,084
Intangibles	(18,941)		(32,304)
Depreciation and amortization	(35,941)		(22,504)
Prepaid expenses	(13,395)		(12,563)
Right-of-use assets	(14,286)		—
Total deferred tax liabilities	(82,563)		(67,371)
Net deferred tax liabilities	$	(24,948)	$	(26,287)

Change in the Balance of Gross Unrecognized Tax Benefits

The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the three years ended December 31, 2019 was as follows:

	(In thousands)
Balance as of December 31, 2016	$	11,616
Increases related to tax positions taken during a prior period	503
Decreases related to tax positions taken during the prior period	(1,782)
Increases related to tax positions taken during the current period	805
Decreases related to settlements	—
Decreases related to expiration of statute of limitations	(401)
Balance as of December 31, 2017	10,741
Increases related to tax positions taken during a prior period	19
Decreases related to tax positions taken during the prior period	(1,257)
Increases related to tax positions taken during the current period	870
Decreases related to settlements	—
Decreases related to expiration of statute of limitations	(412)
Balance as of December 31, 2018	9,961
Increases related to tax positions taken during a prior period	10
Decreases related to tax positions taken during the prior period	(6)
Increases related to tax positions taken during the current period	9,282
Decreases related to settlements	—
Decreases related to expiration of statute of limitations	(2,472)
Balance as of December 31, 2019	$	16,775