Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign The domestic and international components of income (loss) before income taxes are presented as follows:
Year Ended December 31,
2022 2021 2020
(in thousands)
Domestic $ 19,228  $ (31,975) $ (112,778)
Foreign 154,970  79,845  (2,074)
Income (loss) before income taxes $ 174,198  $ 47,870  $ (114,852)
Income Taxes Components of Income Tax Provision (Benefit) The income tax provision (benefit) consists of the following:
Year Ended December 31,
2022 2021 2020
(in thousands)
Current:
Federal $ 12,002  $ 498  $ (176)
State 237  84  12 
Foreign 13,432  7,630  2,687 
Total current 25,671  8,212  2,523 
Deferred:
Federal 32,317  5,108  (18,595)
State (3,686) (4,506) (705)
Foreign (3,490) 484  8,025 
Change in valuation allowance (1,654) (3,397) (7,507)
Total deferred 23,487  (2,311) (18,782)
Total income tax provision (benefit) $ 49,158  $ 5,901  $ (16,259)
Schedule of Effective Income Tax Rate Reconciliation The actual income tax provision (benefit) differs from the amount computed using the federal statutory rate as follows:
Year Ended December 31,
2022 2021 2020
(in thousands)
Provision (benefit) at statutory rate $ 36,582  $ 10,071  $ (24,119)
State income taxes (net of federal benefit) 187  62  9 
Research and development credits (10,146) (10,441) (6,521)
Foreign rate differential (21,629) (10,063) 2,354 
Stock compensation 6,186  4,029  5,425 
Foreign income inclusion 27,971  14,119  1,446 
Provision to return 6,236  (263) (286)
Uncertain tax positions 2,551  1,072  222 
Permanent and other 1,101  726  131 
Foreign unremitted earnings (490) (59) (233)
Transaction costs 5  45  883 
Foreign tax credits 2,224  —  — 
Attribute expirations 34  —  11,937 
Valuation allowance (1,654) (3,397) (7,507)
Total income tax provision (benefit) $ 49,158  $ 5,901  $ (16,259)
Components of Deferred Income Tax Asset The components of the deferred income tax assets are as follows:
December 31,
2022 2021
(in thousands)
Deferred tax assets:
Net operating loss carryforwards $ 30,225  $ 46,062 
Research and development credits 73,965  88,778 
Foreign tax credits —  7,695 
Accrued expenses and other 10,271  2,748 
Lease obligation 1,961  1,041 
Accrued compensation 6,919  5,057 
Stock-based compensation 9,976  8,014 
Intangible assets 5,582  — 
138,899  159,395 
Less valuation allowance (66,273) (68,151)
72,626  91,244 
Deferred tax liabilities:
Fixed assets (4,350) (701)
Leased right-of-use assets (1,784) (735)
Intangible assets —  (640)
Pension liability (1,569) (792)
Net deferred tax assets $ 64,923  $ 88,376 
Schedule of Unrecognized Tax Benefits Roll Forward The following table summarizes the changes to the unrecognized tax benefits during 2022, 2021 and 2020:
(in thousands)
Balance as of December 31, 2019 62,027 
Additions based on tax positions related to the current year 1,506 
Additions related to acquisitions 1,154 
Decreases based on tax positions of prior year (922)
Balance as of December 31, 2020 63,765 
Additions based on tax positions related to the current year 3,366 
Additions related to acquisitions 241 
Decreases based on tax positions of prior year (1,688)
Balance as of December 31, 2021 65,684 
Additions based on tax positions related to the current year 3,431 
Decreases based on tax positions of prior year (1,981)
Balance as of December 31, 2022 $ 67,134