Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Constituents of Provision for Income Taxes

Income tax expense consisted of the following (in thousands):


	Year Ended December 31,
	2024		2023		2022
Current:
Federal	$	28,009	$	29,084	$	48,355
State	4,524		3,544		5,689
Foreign	12,795		9,207		10,243
	45,328		41,835		64,287
Deferred:
Federal	(22,273)		(24,731)		(40,772)
State	(1,324)		(5,877)		(8,354)
Foreign	3,587		10,887		20,009
	(20,010)		(19,721)		(29,117)
	$	25,318	$	22,114	$	35,170

Reconciliation of the United States Federal Statutory Corporate Tax Rate to the Company's Effective Tax Rate or Income Tax Provision

A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows:


	Year Ended December 31,
	2024		2023		2022
Income tax expense at U.S. federal statutory corporate tax rate	21	%	21	%	21	%
State income taxes, net of federal benefit	2		1		2
Foreign tax rate differential	(4)		(6)		(7)
Tax credits	(3)		(3)		(1)
Taxation on multinational operations	(5)		(3)		—
Tax reserves	1		3		1
Limitation on deduction for executive compensation	1		2		1
Discrete tax expense related to employee stock-based compensation	2		1		—
Discrete tax benefit for audit settlements	1		—		(1)
Discrete tax expense for foreign earnings not indefinitely reinvested	1		—		—
Discrete tax expense related to tax return filings	—		2		2
Discrete tax expense related to rate revaluation on state tax assets	—		2		(2)
Discrete tax benefit related to GILTI adjustments	—		(2)		(3)


Discrete tax benefit for release of valuation allowance	—		(4)		(1)


Other	2		2		2
Income tax expense	19	%	16	%	14	%

Constituents of Deferred Tax Assets

The tax effects of temporary differences and attributes that give rise to deferred income tax assets and liabilities as of December 31, 2024 and December 31, 2023 were as follows (in thousands):


	December 31,
	2024		2023
Deferred tax assets:
Intangible asset in connection with change in tax structure	$	369,474	$	375,360
Capitalization of R&D expenses	35,948		28,521
Stock-based compensation expense	22,428		20,916
Tax credit carryforwards	10,186		7,848
Inventory and revenue related	8,355		10,897
Bonuses, commissions, and other compensation	6,949		6,243
Depreciation	2,877		1,840
Foreign net operating losses	1,306		339
Other	4,624		5,514
Total deferred tax assets	462,147		457,478
Valuation allowance	(2,515)		(943)
	$	459,632	$	456,535

Deferred tax liabilities:
GILTI tax basis differences in connection with change in tax structure	$	(254,213)	$	(274,327)
Amortization	(29,008)		(28,685)
Reserve for unremitted foreign earnings	(1,400)		—
	$	(284,621)	$	(303,012)

Net deferred taxes	$	175,011	$	153,523

Schedule of Unrecognized Tax Benefits Roll Forward

The changes in gross amounts of unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands):


Balance of reserve for income taxes as of December 31, 2021	$	13,812
Reductions as a result of tax positions taken in prior periods	(119)
Additions as a result of tax positions taken in prior periods	2,850
Additions as a result of tax positions taken in the current period	505
Reductions relating to settlements with taxing authorities	(2,329)
Reductions as a result of the expiration of the applicable statutes of limitations	(1,072)
Balance of reserve for income taxes as of December 31, 2022	13,647
Reductions as a result of tax positions taken in prior periods	(242)
Additions as a result of tax positions taken in prior periods	12,556
Additions as a result of tax positions taken in the current period	1,877
Reductions relating to settlements with taxing authorities	(1,230)
Reductions as a result of the expiration of the applicable statutes of limitations	(894)
Balance of reserve for income taxes as of December 31, 2023	25,714
Reductions as a result of tax positions taken in prior periods	(39)
Additions as a result of tax positions taken in prior periods	208
Additions as a result of tax positions taken in the current period	1,935
Reductions relating to settlements with taxing authorities	(2,751)
Reductions as a result of the expiration of the applicable statutes of limitations	(1,331)
Balance of reserve for income taxes as of December 31, 2024	$	23,736