Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Summary 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,
2024 2023 2022
(in thousands)
Domestic $ (74,358) $ (85,032) $ 19,228 
Foreign (164,359) 21,222  154,970 
Income (loss) before income taxes $ (238,717) $ (63,810) $ 174,198 
Summary of Income Taxes Components of Income Tax Provision (Benefit)
The income tax provision consists of the following:
Year Ended December 31,
2024 2023 2022
(in thousands)
Current:
Federal $ 893  $ 3,827  $ 12,002 
State 16  65  237 
Foreign 4,739  9,896  13,432 
Total current 5,648  13,788  25,671 
Deferred:
Federal (10,781) (371) 32,317 
State (3,536) (4,942) (3,686)
Foreign (10,889) (6,910) (3,490)
Change in valuation allowance 26,039  7,772  (1,654)
Total deferred 833  (4,451) 23,487 
Total income tax provision $ 6,481  $ 9,337  $ 49,158 
Summary 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,
2024 2023 2022
(in thousands)
Provision (benefit) at statutory rate $ (50,135) $ (13,288) $ 36,582 
State income taxes (net of federal benefit) 10  7  187 
Research and development credits (7,720) (10,066) (10,146)
Foreign rate differential 28,939  (375) (21,629)
Stock compensation 7,855  2,213  6,186 
Foreign income inclusion 558  27,678  27,971 
Provision to return 381  (4,741) 6,236 
Uncertain tax positions 300  1,272  2,551 
Permanent and other 812  (377) 1,101 
Foreign unremitted earnings (558) (758) (490)
Transaction costs —  —  5 
Foreign tax credits —  —  2,224 
Attribute expirations —  —  34 
Valuation allowance 26,039  7,772  (1,654)
Total income tax provision $ 6,481  $ 9,337  $ 49,158 
Summary of Components of Deferred Income Tax Asset
The components of the deferred income tax assets are as follows:
December 31,
2024 2023
(in thousands)
Deferred tax assets:
Net operating loss carryforwards $ 39,258  $ 29,860 
Research and development credits 85,659  78,246 
Foreign tax credit carryforwards 1,578  71 
Accrued expenses and other 17,727  13,106 
Lease obligation 2,446  2,942 
Accrued compensation 2,991  3,447 
Stock-based compensation 11,923  11,203 
Intangible assets 9,698  8,967 
171,280  147,842 
Less valuation allowance (100,131) (74,292)
71,149  73,550 
Deferred tax liabilities:
Fixed assets (497) (966)
Leased right-of-use assets (1,749) (2,839)
Pension liability (355) (371)
Net deferred tax assets $ 68,548  $ 69,374 
Summary of Unrecognized Tax Benefits Roll Forward
The following table summarizes the changes to the unrecognized tax benefits during 2024, 2023 and 2022:
(in thousands)
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 
Additions based on tax positions related to the current year 2,277 
Decreases based on tax positions of prior year (2,032)
Balance as of December 31, 2024 $ 68,883