Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019		2018

	(In thousands)
Domestic	$	34,714	$	81,641	$	46,528
Foreign	(5,365)		(7,708)		(10,912)
Income (loss) before provision for income taxes	$	29,349	$	73,933	$	35,616

Provision For (Benefit From) Income Taxes

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


	Year Ended December 31,
	2020		2019		2018

	(In thousands)
Current:
Federal	$	1,874	$	8,006	$	1,404
State	1,733		4,549		1,832
Foreign	647		1,240		768
Total current income taxes	4,254		13,795		4,004
Deferred:
Federal	(3,868)		(1,292)		5,455
State	(2,494)		(1,609)		(909)
Foreign	(737)		1,701		(10,663)
Total deferred income taxes	(7,099)		(1,200)		(6,117)
Total provision for (benefit from) income taxes	$	(2,845)	$	12,595	$	(2,113)

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,
	2020		2019		2018

	(In thousands)
U.S. federal tax provision at statutory rate	$	6,163	$	15,525	$	7,479
State taxes	(601)		2,258		651
Section 162(m) limitation	2,550		2,279		738
Non-deductible expenses	325		619		686

Uncertain tax positions	(394)		(2,472)		(412)
Share-based compensation tax benefit	(6,929)		(7,892)		(4,005)
Research tax credits	(4,038)		(3,805)		(3,230)

Restructuring impact	—		7,432		(4,205)
Foreign derived intangible income deduction	(204)		(449)		(349)


Foreign rate differential	(102)		(1,424)		561



Other	385		524		(27)
Total provision for (benefit from) income taxes	$	(2,845)	$	12,595	$	(2,113)

Significant Components of Deferred Tax Assets (Liabilities)

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


	December 31,
	2020		2019

	(In thousands)
Deferred tax assets (liabilities):
Deferred revenues	$	5,910	$	4,129
Share-based compensation	8,094		6,483
Inventory-related items	4,953		3,507
Tax credit carryforwards	12,105		13,472
Reserves and accruals	8,160		5,712
Loss carryforwards	8,461		9,484
Lease liability	15,465		15,471
Other, net	1,578		543
Gross deferred tax assets	64,726		58,801
Valuation allowance	(1,199)		(1,186)
Total net deferred tax assets	63,527		57,615

Intangibles	(22,010)		(18,941)
Depreciation and amortization	(36,528)		(35,941)

Prepaid expenses	(15,654)		(13,395)

Right-of-use assets	(13,949)		(14,286)
Total deferred tax liabilities	(88,141)		(82,563)

Net deferred tax liabilities	$	(24,614)	$	(24,948)

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, 2020 was as follows:


	(In thousands)
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
Increases related to tax positions taken during a prior period	88
Decreases related to tax positions taken during the prior period	—
Increases related to tax positions taken during the current period	2,294
Decreases related to settlements	—
Decreases related to expiration of statute of limitations	(911)
Balance as of December 31, 2020	$	18,246