Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The income tax expense consists of (in thousands):
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
22,342

 
$
3,333

 
$
(5
)
State
6,913

 
5,561

 
1,834

Foreign
3,470

 
790

 

      
32,725

 
9,684

 
1,829

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
1,753

 
15,396

 
9,029

State
387

 
(2,250
)
 
(1,213
)
Foreign
(3,345
)
 
(558
)
 

 
(1,205
)
 
12,588

 
7,816

Income tax expense
$
31,520

 
$
22,272

 
$
9,645


Differences Between Provision for Income Taxes and Income Taxes at Statutory Federal Income Tax Rate
Income tax expense differs from the amounts computed by applying the U.S. federal statutory tax rate as a result of the following (in thousands):
 
2019
 
2018
 
2017
Income tax at U.S. federal statutory tax rate
$
19,057

 
$
40,092

 
$
56,087

State income tax, net of federal benefit
5,332

 
3,488

 
1,825

Foreign rate differential
1,372

 
226

 

Stock-based compensation
2,352

 
(19,631
)
 
(57,358
)
Nondeductible items
2,611

 
1,119

 
1,181

Research and development
(2,379
)
 
(4,622
)
 
(6,418
)
Uncertain tax positions
2,714

 
2,699

 
850

Change in tax rate – other

 
(508
)
 
614

Change in tax rate – U.S tax reform

 

 
13,017

Change in valuation allowance
530

 
692

 
410

Other, net
(69
)
 
(1,283
)
 
(563
)
Income tax expense
$
31,520

 
$
22,272

 
$
9,645


Deferred Tax Assets and Liabilities
The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2019 and 2018 are presented below (in thousands):
 
2019
 
2018
Deferred tax assets:
 
 
 
   Net operating loss carryforward
$
4,006

 
$
2,893

   Tax credit carryforwards
7,287

 
11,691

   Lease right of use liabilities
4,537

 

   Stock compensation
15,466

 
7,388

   Accruals
6,496

 
9,276

      Gross deferred tax assets
37,792

 
31,248

Less: Valuation allowance
(1,717
)
 
(1,189
)
Deferred tax assets, net of valuation allowance
36,075

 
30,059

Deferred tax liabilities:
 
 
 
   Fixed assets
(127
)
 
(585
)
   Intangibles
(15,331
)
 
(17,034
)
  Lease right of use assets
(4,140
)
 

   Federal benefit of state tax deferred tax assets
(876
)
 
(1,231
)
      Gross deferred tax liabilities
(20,474
)
 
(18,850
)
      Deferred tax assets, net
$
15,601

 
$
11,209


Reconciliation of Total Amounts of Unrecognized Tax Benefits
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 (in thousands):
 
Unrecognized Tax Benefits
Balance at December 31, 2016
$
(6,153
)
Addition for tax positions of prior years
(293
)
Reduction for tax positions of prior years
300

Addition for tax position of the current year
(3,504
)
Balance at December 31, 2017
$
(9,650
)
Additions for tax positions of prior years
(1,396
)
Reduction for tax positions of prior years
275

Additions for tax position of the current year
(2,418
)
Balance at December 31, 2018
$
(13,189
)
Additions for tax positions of prior years
(1,416
)
Reduction for tax positions of prior years
104

Additions for tax position of the current year
(1,522
)
Additions related to acquisitions
$
(523
)
Balance at December 31, 2019
$
(16,546
)