Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes are as follows (in thousands):

	Year ended December 31,
	2022			2021			2020
U.S.	$	(62,702	)	$	(27,850	)	$	(22,127	)
Non-U.S.		34,489			27,562			24,159
	$	(28,213	)	$	(288	)	$	2,032

Schedule of Significant Components of Income Tax Expense

The significant components of the income tax expense are as follows (in thousands):

	Year ended December 31,
	2022			2021			2020
Current
U.S. Federal	$	—		$	—		$	—
Non-U.S.		18,759			9,781			23,197
U.S. State and Local		621			227			(315	)
Total current		19,380			10,008			22,882
Deferred
U.S. Federal		23			26			(881	)
Non-U.S.		(4,206	)		(1,550	)		(9,849	)
U.S. State and Local		19			22			380
Total deferred		(4,164	)		(1,502	)		(10,350	)
Income tax expense	$	15,216		$	8,506		$	12,532

Reconciliation of Income Taxes Calculated at U.S. Federal Statutory Income Tax Rate

The reconciliation of income taxes calculated at the U.S. Federal statutory income tax rate to income tax expense is as follows (in thousands):

	Year ended December 31,
	2022			2021			2020
U.S. federal statutory rate		21	%		21	%		21	%
Income taxes at U.S. federal statutory rate	$	(5,925	)	$	(60	)	$	427
Foreign income taxes at rates other than the federal statutory rate		2,249			2,950			1,161
U.S. state and local income taxes, net of U.S. federal tax benefit		(5,976	)		(4,826	)		(4,892	)
U.S. effect of changes in tax laws		—			—			4,946
U.S. effect of foreign operations		15,827			1,827			1,205
Change in valuation allowance		7,830			20,212			5,215
Foreign withholding taxes		6,738			(4,545	)		5,236
U.S. foreign tax credit and deduction		(12,315	)		(288	)		(1,308	)
Research and development tax credit		(326	)		(784	)		2,576
Stock-based compensation		8,649			(12,791	)		(5,034	)
Other		1,250			753			825
Uncertain tax positions		472			6,058			2,175
FDII deduction		(5,245	)		—			—
Mark-to-market adjustment of contingent consideration		(1,502	)		—			—
Repurchase of convertible senior notes		3,490			—			—
Income tax expense	$	15,216		$	8,506		$	12,532

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statements purposes. The approximate tax effect of each type of temporary difference, and operating losses and tax credit carryforwards that give rise to a significant portion of the deferred tax assets and liabilities are as follows (in thousands):

	December 31,
	2022			2021
Deferred tax assets:
Deferred revenue	$	18,571		$	12,217
Net operating loss carryforwards		64,091			87,144
Tax credit carryforwards		24,319			26,035
Stock-based compensation		8,312			5,011
Capitalized research and development		43,860			4,408
Lease obligation		8,810			8,518
Employee benefits		5,941			6,460
Other		5,931			3,866
Total gross deferred tax assets		179,835			153,659
Less: valuation allowances		(149,441	)		(119,981	)
Net deferred tax assets (1)		30,394			33,678
Deferred tax liabilities:
Property and equipment and intangibles		24,155			21,834
Deferred tax on investment in subsidiary		1,500			1,500
Lease right of use asset		8,578			8,283
Convertible debt, net of issuance costs		-			6,331
Other		3,209			2,624
Total deferred tax liabilities		37,442			40,572
Total net deferred tax (liabilities) assets	$	(7,048	)	$	(6,894	)

(1)Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities.

Summary of Changes to Valuation Allowance Balance

The following table summarizes the changes to the valuation allowance balance (in thousands):

	Year ended December 31,
	2022		2021		2020
Beginning balance	$	119,981	$	96,831	$	84,356
Additions charged to expense		7,830		20,212		5,215
Other		21,630		2,938		7,260
Ending balance	$	149,441	$	119,981	$	96,831

Summary of Operating Loss and Tax Credit Carryforwards

The following table summarizes the amount and expiration dates of operating loss and tax credit carryforwards as of December 31, 2022 (in thousands):

	Expiration dates	Amounts
U.S. general business credits and loss carryforwards	2023-Indefinite	$	65,755
Foreign general business credits and loss carryforwards	2023-Indefinite		19,428
U.S. foreign tax credits	2027		3,227
Total operating loss and tax credit carryforwards		$	88,410

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

	Year ended December 31,
	2022			2021			2020
Unrecognized tax benefits—January 1	$	16,376		$	8,310		$	12,114
Additions for tax positions of current period		50			1,042			209
Additions for tax positions of prior periods		13,910			8,983			1,849
Reductions for tax positions of prior periods		(1,334	)		(1,934	)		(5,862	)
Reductions due to statute of limitations		(25	)		(25	)		—
Unrecognized tax benefits—December 31	$	28,977		$	16,376		$	8,310