Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Geographical Breakdown of Income (Loss) before the Provision for Income Taxes

The following is a geographical breakdown of income (loss) before the provision for income taxes:


	Year Ended December 31,
	2021		2020		2019

	(In thousands)
Domestic	$	67,103	$	34,714	$	81,641
Foreign	(1,096)		(5,365)		(7,708)
Income (loss) before provision for income taxes	$	66,007	$	29,349	$	73,933

Provision for (Benefit from) Income Taxes

The provision for (benefit from) income taxes consisted of the following:


	Year Ended December 31,
	2021		2020		2019

	(In thousands)
Current:
Federal	$	(7,841)	$	1,874	$	8,006
State	187		1,733		4,549
Foreign	(234)		647		1,240
Total current income taxes	(7,888)		4,254		13,795
Deferred:
Federal	(2,708)		(3,868)		(1,292)
State	(1,217)		(2,494)		(1,609)
Foreign	(29)		(737)		1,701
Total deferred income taxes	(3,954)		(7,099)		(1,200)
Total provision for (benefit from) income taxes	$	(11,842)	$	(2,845)	$	12,595

Difference Between the Provision for (Benefit from) Income Taxes Compared to Income Taxes Computed at the Statutory Federal Tax Rate

The provision for (benefit from) income taxes differs from the amount computed by applying the statutory federal tax rate as follows:


	Year Ended December 31,
	2021		2020		2019

	(In thousands)
U.S. federal tax provision at statutory rate	$	13,861	$	6,163	$	15,525
State taxes	(814)		(601)		2,258
Section 162(m) limitation	6,382		2,550		2,279
Non-deductible expenses	363		325		619

Uncertain tax positions	(835)		(394)		(2,472)
Share-based compensation tax benefit	(20,717)		(6,929)		(7,892)
Research tax credits	(5,170)		(4,038)		(3,805)

Restructuring impact	(6,116)		—		7,432
Foreign derived intangible income deduction	(68)		(204)		(449)


Foreign rate differential	17		(102)		(1,424)



Transaction cost	1,097		422		—
Other	158		(37)		524
Total provision for (benefit from) income taxes	$	(11,842)	$	(2,845)	$	12,595

Significant Components of Deferred Tax Assets (Liabilities)

Significant components of the Company’s deferred tax assets (liabilities) were as follows:


	December 31,
	2021		2020

	(In thousands)
Deferred tax assets (liabilities):
Deferred revenues	$	6,892	$	5,910
Share-based compensation	9,265		8,094
Inventory-related items	4,834		4,953
Tax credit carryforwards	15,311		12,105
Reserves and accruals	8,699		8,160
Loss carryforwards	14,451		8,461
Lease liability	13,179		15,465
Other, net	1,824		1,578
Gross deferred tax assets	74,455		64,726
Valuation allowance	—		(1,199)
Total net deferred tax assets	74,455		63,527

Intangibles	(41,158)		(22,010)
Depreciation and amortization	(38,924)		(36,528)

Prepaid expenses	(17,775)		(15,654)
Right-of-use assets	(12,039)		(13,949)
Other, net	(381)		—
Total deferred tax liabilities	(110,277)		(88,141)

Net deferred tax liabilities	$	(35,822)	$	(24,614)

Change in the Balance of Gross Unrecognized Tax Benefits

The aggregate change in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the years ended December 31, 2021, 2020, and 2019:


	(In thousands)
Balance as of December 31, 2018	$	9,961
Increases related to tax positions taken during a prior period	10
Decreases related to tax positions taken during the prior period	(6)
Increases related to tax positions taken during the current period	9,282
Decreases related to settlements	—
Decreases related to expiration of statute of limitations	(2,472)
Balance as of December 31, 2019	16,775
Increases related to tax positions taken during a prior period	88
Decreases related to tax positions taken during the prior period	—
Increases related to tax positions taken during the current period	2,294
Decreases related to settlements	—
Decreases related to expiration of statute of limitations	(911)
Balance as of December 31, 2020	18,246
Increases related to tax positions taken during a prior period	40
Decreases related to tax positions taken during the prior period	(8,908)
Increases related to tax positions taken during the current period	1,219
Decreases related to settlements	—
Decreases related to expiration of statute of limitations	(1,636)
Balance as of December 31, 2021	$	8,961