Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Tax

Components of the Company’s income (loss) before income taxes for the periods indicated are as follows (in thousands):

	Year Ended December 31,
	2024			2023			2022
Income (loss) before income taxes:
Canada	$	(7,425	)	$	(6,490	)	$	(4,946	)
U.S.		11,829			38,992			28,365
Other		74,662			51,246			63,740
Total	$	79,066		$	83,748		$	87,159

Components of Income Tax Provision (Benefit)

Components of the Company’s income tax provision (benefit) for the periods indicated are as follows (in thousands):

	Year Ended December 31,
	2024			2023			2022
Current
Canada	$	43		$	59		$	65
U.S.		11,198			14,424			17,205
Other		19,647			11,113			14,492
		30,888			25,596			31,762
Deferred
Canada		—			—			—
U.S.		(12,612	)		(12,224	)		(15,370	)
Other		(3,297	)		(2,502	)		(3,284	)
		(15,909	)		(14,726	)		(18,654	)
Total	$	14,979		$	10,870		$	13,108

Reconciliation of Statutory Canadian Tax rate to Effective Tax Rate

The reconciliation of the statutory Canadian tax rate to the effective tax rate related to income before income taxes for the periods indicated is as follows (in thousands, except percentage data):

	Year Ended December 31,
	2024			2023			2022
Statutory Canadian tax rate		29.00	%		29.00	%		29.00	%
Expected income tax provision at Canadian statutory tax rate	$	22,929		$	24,287		$	25,276
U.S. state income taxes, net		(168	)		860			3
U.K. patent box		(3,982	)		(4,247	)		(3,135	)
Foreign-derived intangible income		(3,015	)		(4,500	)		(4,467	)
International tax rate differences		(2,622	)		(4,804	)		(6,289	)
Tax credits		(2,590	)		(3,602	)		(2,256	)
Change in valuation allowance		1,930			2,068			2,048
Disallowed compensation		1,678			2,571			2,138
Withholding and other taxes		854			300			789
Windfall benefit from share-based compensation		(844	)		(1,685	)		(254	)
Transaction costs and permanent differences		360			423			140
Uncertain tax positions		244			90			(168	)
Provision to return differences		231			(1,056	)		(19	)
Acquisition contingent consideration adjustments		(81	)		—			(698	)
Statutory tax rate changes		55			165			—
Reported income tax provision	$	14,979		$	10,870		$	13,108
Effective tax rate		18.9	%		13.0	%		15.0	%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2024 and December 31, 2023 are as follows (in thousands):

	December 31,
	2024			2023
Deferred tax assets:
Capitalized R&D	$	34,777		$	25,238
Inventories		15,451			12,497
Losses		12,606			11,274
Compensation related deductions		9,323			8,457
Operating lease liabilities		9,120			10,194
Tax credits		3,260			3,222
Business interest expense		1,483			-
Other		974			724
Warranty		913			964
Total deferred tax assets		87,907			72,570
Valuation allowance on deferred tax assets		(18,594	)		(16,674	)
Net deferred tax assets	$	69,313		$	55,896
Deferred tax liabilities:
Amortization	$	(39,061	)	$	(24,436	)
Operating lease right-of-use assets		(8,110	)		(9,198	)
Depreciation		(6,307	)		(5,389	)
Deferred revenue		(6,041	)		(5,316	)
Total deferred tax liabilities	$	(59,519	)	$	(44,339	)
Net deferred tax assets (liabilities)	$	9,794		$	11,557

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The reconciliation of the total amounts of unrecognized tax benefits is as follows (in thousands):

Balance at December 31, 2021	$	4,797
Additions based on tax positions related to the current year		553
Additions for tax positions of prior years		34
Reductions to tax positions of prior years		(563	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(572	)
Settlements with tax authorities		—
Balance at December 31, 2022		4,249
Additions based on tax positions related to the current year		561
Additions for tax positions of prior years		47
Reductions to tax positions of prior years		(22	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(492	)
Settlements with tax authorities		—
Balance at December 31, 2023		4,343
Additions based on tax positions related to the current year		949
Additions for tax positions of prior years		204
Reductions to tax positions of prior years		(42	)
Reductions to tax positions resulting from a lapse of the applicable statute of limitations		(615	)
Settlements with tax authorities		—
Balance at December 31, 2024	$	4,839

Income Tax Returns to be Reviewed

The Company’s income tax returns may be reviewed by tax authorities in the following countries for the following periods under the appropriate statute of limitations:

United States	2019 - Present
Canada	2017 - Present
United Kingdom	2023 - Present
Germany	2017 - Present
Czech Republic	2022 - Present
China	2014 - Present
Japan	2019 - Present