Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
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,
2023 2022 2021
(in thousands)
Domestic $ (85,032) $ 19,228  $ (31,975)
Foreign 21,222  154,970  79,845 
Income (loss) before income taxes $ (63,810) $ 174,198  $ 47,870 
Schedule of Income Taxes Components of Income Tax Provision
The income tax provision consists of the following:
Year Ended December 31,
2023 2022 2021
(in thousands)
Current:
Federal $ 3,827  $ 12,002  $ 498 
State 65  237  84 
Foreign 9,896  13,432  7,630 
Total current 13,788  25,671  8,212 
Deferred:
Federal (371) 32,317  5,108 
State (4,942) (3,686) (4,506)
Foreign (6,910) (3,490) 484 
Change in valuation allowance 7,772  (1,654) (3,397)
Total deferred (4,451) 23,487  (2,311)
Total income tax provision $ 9,337  $ 49,158  $ 5,901 
Schedule of Effective Income Tax Rate Reconciliation
The actual income tax provision differs from the amount computed using the federal statutory rate as follows:
Year Ended December 31,
2023 2022 2021
(in thousands)
Provision (benefit) at statutory rate $ (13,288) $ 36,582  $ 10,071 
State income taxes (net of federal benefit) 7  187  62 
Research and development credits (10,066) (10,146) (10,441)
Foreign rate differential (375) (21,629) (10,063)
Stock compensation 2,213  6,186  4,029 
Foreign income inclusion 27,678  27,971  14,119 
Provision to return (4,741) 6,236  (263)
Uncertain tax positions 1,272  2,551  1,072 
Permanent and other (377) 1,101  726 
Foreign unremitted earnings (758) (490) (59)
Transaction costs —  5  45 
Foreign tax credits —  2,224  — 
Attribute expirations —  34  — 
Valuation allowance 7,772  (1,654) (3,397)
Total income tax provision $ 9,337  $ 49,158  $ 5,901 
Schedule of Components of Deferred Income Tax Asset
The components of the deferred income tax assets are as follows:
December 31,
2023 2022
(in thousands)
Deferred tax assets:
Net operating loss carryforwards $ 29,860  $ 30,225 
Research and development credits 78,246  73,965 
Foreign tax credits 71  — 
Accrued expenses and other 13,106  10,271 
Lease obligation 2,942  1,961 
Accrued compensation 3,447  6,919 
Stock-based compensation 11,203  9,976 
Intangible assets 8,967  5,582 
147,842  138,899 
Less valuation allowance (74,292) (66,273)
73,550  72,626 
Deferred tax liabilities:
Fixed assets (966) (4,350)
Leased right-of-use assets (2,839) (1,784)
Pension liability (371) (1,569)
Net deferred tax assets $ 69,374  $ 64,923 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table summarizes the changes to the unrecognized tax benefits during 2023, 2022 and 2021:
(in thousands)
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 
Additions based on tax positions related to the current year 3,032 
Decreases based on tax positions of prior year (1,528)
Balance as of December 31, 2023 $ 68,638