PROVISION (BENEFIT) FOR INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

PROVISION (BENEFIT) FOR INCOME TAXES

U.S. and foreign components of income before income taxes

U.S. and foreign components of income before income taxes were:

	Year Ended December 31,
(In thousands)	2023		2022		2021
U.S. operations	$	2,995	$	17,250	$	241
Foreign operations		42,912		166,176		175,894
Total income before income taxes	$	45,907	$	183,426	$	176,135

Components of provision (benefit) for income taxes

The components of the provision (benefit) for income taxes are as follows:

	Year Ended December 31,
(In thousands)	2023		2022		2021
Current provision (benefit):
Federal	$	(1,193)	$	19,740	$	23,648
State		3		2		2
Foreign		1,331		1,079		1,608
		141		20,821		25,258
Deferred provision (benefit):
Federal		(9,178)		(7,962)		(11,449)
State		—		—		—
Foreign		(791)		(284)		(2,087)
		(9,969)		(8,246)		(13,536)
Total	$	(9,828)	$	12,575	$	11,722

Effective income tax rate reconciliation

The provision (benefit) for income taxes differs from the amount that would result by applying the applicable federal income tax rate to income before income taxes, as follows:

	Year Ended December 31,
	2023		2022		2021
Provision (benefit) computed at Federal statutory rate	21.0	%	21.0	%	21.0	%
Business tax credits	(12.2)		(3.7)		(3.6)
Stock-based compensation	(0.1)		(1.6)		(0.6)
Foreign income taxed at different rate	(17.6)		(18.5)		(23.8)
GILTI inclusion	4.1		8.5		13.1
Uncertain tax positions	(18.6)		(0.1)		(0.6)
Valuation allowance	4.3		1.3		1.3
Other	(2.3)		—		(0.1)
Total	(21.4)	%	6.9	%	6.7	%

Components of net deferred income tax assets (liabilities)

The components of the net deferred income tax assets (liabilities) were as follows:

	December 31,
(In thousands)	2023		2022
Deferred tax assets:
Capitalized R&D costs	$	30,886	$	20,666
Other reserves and accruals		861		2,516
Tax credit carry-forwards		28,223		26,154
Stock compensation		1,543		1,559
Capital losses		141		150
Net operating loss		2,269		2,217
Other		465		439
Valuation allowance		(31,031)		(29,036)
		33,357		24,665
Deferred tax liabilities:
Depreciation		(5,040)		(5,596)
		(5,040)		(5,596)
Net deferred tax assets	$	28,317	$	19,069

Unrecognized tax benefits rollforward

The Company applies the provisions of ASC 740-10, relating to accounting for uncertain income taxes. Reconciliation of the beginning and ending amount of unrecognized tax benefits:

	Unrecognized
(In thousands)	Tax Benefits
Unrecognized tax benefits balance at January 1, 2021	$	21,051
Gross increase for tax positions of current year		2,068
Gross decrease for tax positions of prior years		—
Statute of limitation release for tax positions of prior years		(1,756)
Unrecognized tax benefits balance at December 31, 2021		21,363
Gross increase for tax positions of current year		2,188
Gross decrease for tax positions of prior years		—
Statute of limitation release for tax positions of prior years		(165)
Unrecognized tax benefits balance at December 31, 2022		23,386
Gross increase for tax positions of current year		605
Gross decrease for tax positions of prior years		—
Statute of limitation release for tax positions of prior years		(7,602)
Unrecognized tax benefits balance at December 31, 2023	$	16,389