Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes

Schedule of income before income taxes

	Year ended December 31,
	2022		2021		2020
	(in thousands)
United States	$	198,028	$	116,380	$	51,934
Foreign		6,857		4,048		3,952
Income before income taxes	$	204,885	$	120,428	$	55,886

Schedule of provision for income taxes

	Year ended December 31,
	2022		2021		2020
	(in thousands)
Current:
United States
Federal	$	8,430	$	—	$	—
State		1,716		82		157
Foreign		3,124		1,439		1,062
Total current		13,270		1,521		1,219
Deferred:
Federal		9,097		20,521		4,594
State		(102)		406		295
Foreign		(459)		(670)		(204)
Total deferred		8,536		20,257		4,685
Income tax provision	$	21,806	$	21,778	$	5,904

Schedule of reconciliation of income taxes at the United States Federal statutory rate to the effective income tax rate

	Year ended December 31,
	2022		2021		2020
	(in thousands)
Income taxes at the United States statutory rate	$	43,026	$	25,290	$	11,736
State income taxes		1,075		387		226
Effect of change in valuation allowance		680		(1,443)		806
Foreign income tax rate differentials		289		152		181
Stock based compensation		(3,818)		(3,658)		(2,803)
Internal revenue code section 162(m) limitation		2,692		1,481		409
Credit expirations		1,181		2,342		(14)
Rate change		94		159		151
Credit generation		(4,764)		(3,096)		(2,473)
Discrete items, net		206		72		(147)
Previously unrecognized tax benefit		—		—		(4,063)
GILTI inclusion		69		301		732
Foreign-derived intangible income		(20,526)		—		—
Other, net		1,602		(209)		1,163
Income tax provision	$	21,806	$	21,778	$	5,904

Schedule of significant components of current and long-term deferred income taxes

	Year ended December 31,
	2022		2021
	(in thousands)
Deferred tax assets:
Federal net operating loss carryforwards	$	—	$	5,635
State net operating loss carryforwards		291		727
Foreign net operating loss carryforwards		276		371
Federal tax credit carryforwards		—		18,840
State tax credit carryforwards		8,683		8,138
Property, plant and equipment		8,755		8,967
Operating lease liability		1,564		792
Accrued compensation		276		280
Inventories		1,613		1,729
Stock compensation		1,620		1,401
Warranty		1,993		1,471
Deferred revenue		4,501		836
Capitalized research and development costs		18,067		—
Gross deferred tax assets		47,639		49,187
Valuation allowance		(8,370)		(7,689)
Net deferred tax assets		39,269		41,498
Deferred tax liabilities:
Intangible assets		(176)		(72)
Right-of-use asset		(5,400)		(4,918)
Other		(1,992)		(1,054)
Gross deferred tax liabilities		(7,568)		(6,044)
Deferred taxes, net	$	31,701	$	35,454

Schedule of reconciliation of the beginning and ending balance of unrecognized tax benefits

		Year ended December 31,
	2022		2021		2020
	(in thousands)
Balance at beginning of year	$	9,961	$	10,044	$	9,799
Decrease in unrecognized tax benefits as a result of tax positions taken during a prior period		(122)		(546)		(502)
Decreases in unrecognized tax benefits related to settlements with tax authorities		(708)		—		—
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitation		—		(472)		—
Increases in unrecognized tax benefits as a result of tax positions taken during the current period		1,312		935		747
Balance at end of year	$	10,443	$	9,961	$	10,044
Recorded as other long-term liability	$	7,190	$	—	$	472
Recorded as a decrease in deferred tax assets		3,253		9,961		9,572
Balance at end of year	$	10,443	$	9,961	$	10,044