Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of income before income taxes

	Year ended December 31,
	2023		2022		2021
	(in thousands)
United States	$	270,842	$	198,028	$	116,380
Foreign		7,757		6,857		4,048
Income before income taxes	$	278,599	$	204,885	$	120,428

Schedule of provision for income taxes

	Year ended December 31,
	2023		2022		2021
	(in thousands)
Current:
United States
Federal	$	46,871	$	8,430	$	—
State		1,985		1,716		82
Foreign		3,498		3,124		1,439
Total current		52,354		13,270		1,521
Deferred:
Federal		(18,526)		9,097		20,521
State		(440)		(102)		406
Foreign		(1,052)		(459)		(670)
Total deferred		(20,018)		8,536		20,257
Income tax provision	$	32,336	$	21,806	$	21,778

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

	Year ended December 31,
	2023		2022		2021
	(in thousands)
Income taxes at the United States statutory rate	$	58,506	$	43,026	$	25,290
State income taxes		1,033		1,075		387
Effect of change in valuation allowance		1,978		680		(1,443)
Foreign income tax rate differentials		329		289		152
Stock-based compensation		(6,718)		(3,818)		(3,658)
Internal revenue code section 162(m) limitation		4,488		2,692		1,481
Credit expirations		784		1,181		2,342
Rate change		44		94		159
Credit generation		(6,900)		(4,764)		(3,096)
Discrete items, net		2,161		206		72
GILTI inclusion		45		69		301
Foreign-derived intangible income		(24,052)		(20,526)		—
Other, net		638		1,602		(209)
Income tax provision	$	32,336	$	21,806	$	21,778

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

	Year ended December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
State net operating loss carryforwards	$	96	$	291
Foreign net operating loss carryforwards		182		276
Federal tax credit carryforwards		1,999		—
State tax credit carryforwards		9,560		8,683
Property, plant and equipment		6,979		8,755
Operating lease liability		5,564		1,564
Accrued compensation		242		276
Inventories		804		1,613
Stock compensation		1,790		1,620
Warranty		3,108		1,993
Deferred revenue		6,389		4,501
Capitalized research and development costs		38,036		18,067
Gross deferred tax assets		74,749		47,639
Valuation allowance		(10,963)		(8,370)
Net deferred tax assets		63,786		39,269
Deferred tax liabilities:
Intangible assets		—		(176)
Right-of-use asset		(9,155)		(5,400)
Other		(1,203)		(1,992)
Gross deferred tax liabilities		(10,358)		(7,568)
Deferred taxes, net	$	53,428	$	31,701

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

		Year ended December 31,
	2023		2022		2021
	(in thousands)
Balance at beginning of year	$	10,443	$	9,961	$	10,044
Decrease in unrecognized tax benefits as a result of tax positions taken during a prior period		(271)		(122)		(546)
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		1,754		1,312		935
Balance at end of year	$	11,926	$	10,443	$	9,961
Recorded as other long-term liability	$	8,344	$	7,190	$	—
Recorded as a decrease in deferred tax assets		3,582		3,253		9,961
Balance at end of year	$	11,926	$	10,443	$	9,961