XML 63 R44.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
Consolidated Income (Loss) Before Provision for Income Taxes
Consolidated income (loss) before provision for income taxes consists of the following for the years ended December 31, 2024, 2023 and 2022 (U.S. dollars in thousands):

 
2024
    
2023
    
2022
  
U.S.
  
$
(237,693
)
  
$
(37,152
)
  
$
24,411
  
Foreign
    
62,642
      
63,730
      
64,559
  
Total
  
$
(175,051
)
  
$
26,578
    
$
88,970
  
Current and Deferred Taxes
The provision (benefit) for current and deferred taxes for the years ended December 31, 2024, 2023 and 2022 consists of the following (U.S. dollars in thousands):

 
2024
    
2023
    
2022
  
Current
                  
Federal
  
$
998
    
$
—
    
$
—
  
State
    
708
      
3,903
      
1,515
  
Foreign
    
25,314
      
29,179
      
34,117
  
     
27,020
      
33,082
      
35,632
  
Deferred
                        
Federal
    
(60,354
)
    
(18,039
)
    
(65,733
)
State
    
(1,593
)
    
(1,440
)
    
(1,239
)
Foreign
    
6,470
      
4,380
      
15,532
  
     
(55,477
)
    
(15,099
)
    
(51,440
)
Provision (benefit) for income taxes
  
$
(28,457
)
  
$
17,983
    
$
(15,808
)
Deferred Tax Assets and Liabilities
The principal components of deferred taxes are as follows (U.S. dollars in thousands):

 
Year Ended December 31,
  
   
2024
    
2023
  
Deferred tax assets:
            
Inventory differences
  
$
108,895
    
$
78,338
  
Foreign tax credit and other foreign benefits
    
36,689
      
37,369
  
Stock-based compensation
    
3,882
      
4,556
  
Accrued expenses not deductible until paid
    
26,529
      
33,066
  
Net operating losses
    
19,710
      
21,864
  
Interest Expense Limitation - 163(j)
     2,832
        —
  
Capitalized research and development
    
27,917
      
27,750
  
R&D credit carryforward
    
2,594
      
2,294
  
Other
    
285
      
293
  
Gross deferred tax assets
    
229,333
      
205,530
  
Deferred tax liabilities:
                
Foreign currency exchange
     1,341       3,596  
Foreign withholding taxes
    
10,936
      
14,591
  
Intangibles step-up
    
1,020
      
3,787
  
Overhead allocation to inventory
    
—
      
106
  
Amortization of intangibles
    
11,215
      
22,857
  
Other
    
6,580
      
6,281
  
Gross deferred tax liabilities
    
31,092
      
51,218
  
Valuation allowance
    
(24,337
)
    
(47,142
)
Deferred taxes, net
  
$
173,904
    
$
107,170
  
Deferred Tax Asset Valuation Adjustments
The deferred tax asset valuation adjustments for the years ended December 31, 2024, 2023 and 2022 are as follows (U.S. dollars in thousands):

 
Year Ended December 31,
  
   
2024
    
2023
    
2022
  
Balance at the beginning of period
  
$
47,142
    
$
33,557
    
$
80,186
  
Additions charged to cost and expenses
    
2,245
(1) 
    
13,183
(4) 
    
3,231
(6) 
Decreases
    
(27,086
)(2)
    
(1,825
)(5)
    
(50,315
)(7)
Adjustments
    
2,036
(3) 
    
2,227
(3) 
    
455
(3) 
Balance at the end of the period
  
$
24,337
    
$
47,142
    
$
33,557
  

(1)
Increase in valuation is due primarily to net operating losses in foreign markets.
(2)
The decrease was due primarily to the release of the valuation allowance against $18.3 million of foreign tax credits and $2.3 million of R&D credits.
(3)
Represents the net currency effects of translating valuation allowances at current rates of exchange.
(4)
Increase in valuation is due primarily to net operating losses in foreign markets and $6.1 million that was recorded on the foreign tax credit carryforward.
(5)
The decrease was due to expiration of foreign net operating losses.
(6)
Increase in valuation is primarily due to net operating losses in foreign markets.
(7)
The decrease was due to utilization of $18.1 million of foreign tax credits and the valuation allowance release of $32.2 million foreign tax credits.
Deferred Taxes, Net on a Jurisdiction Basis
The components of deferred taxes, net on a jurisdiction basis are as follows (U.S. dollars in thousands):

 
Year Ended December 31,
  
   
2024
    
2023
  
Net noncurrent deferred tax assets
  
$
174,249
    
$
107,692
  
Net noncurrent deferred tax liabilities
    
345
      
522
  
Deferred taxes, net
  
$
173,904
    
$
107,170
  
Reconciliation of Statutory to Effective Tax Rate
The actual tax rate for the years ended December 31, 2024, 2023 and 2022 compared to the statutory U.S. Federal tax rate is as follows:

 
Year Ended December 31,
  
   
2024
    
2023
    
2022
  
Income taxes at statutory rate
    
21.00
%
    
21.00
%
    
21.00
%
Excess tax benefit from equity award
    
(0.73
)%
    
5.04
%
    
(0.12
)%
Deferred compensation
     1.35 %     (4.28 )%     2.18 %
Executive salary limitation
     (1.15 )%     1.59 %     2.06 %
State taxes     0.38 %     7.34 %     0.25 %
Foreign exchange     0.20 %     (1.91 )%     0.68 %
Non-U.S. income taxed at different rates
    
(2.55
)%
    
12.70
%
    
4.78
%
Foreign withholding taxes
    
(0.89
)%
    
13.31
%
    
(0.73
)%
Change in reserve for uncertain tax positions
    
(3.77
)%
    
1.74
%
    
17.69
%
Valuation allowance recognized foreign tax credit & others
    
11.89
%
    
24.66
%
    
(56.17
)%
Foreign-Derived Intangible Income (FDII)
    
—
      
(14.11
)%
    
(8.14
)%
Acquisition adjustments
     (1.55 )%     (0.05 )%     (0.93 )%
Goodwill impairment
     (7.86 )%     —       —  
Other
    
(0.06
)%
    
0.63
%
    
(0.32
)%
     
16.26
%
    
67.66
%
    
(17.77
)%