Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020

	(In thousands)
Domestic	$	369	$	67,103	$	34,714
Foreign	(2,822)		(1,096)		(5,365)
Income (loss) before provision for income taxes	$	(2,453)	$	66,007	$	29,349

Provision for (Benefit from) Income Taxes

The benefit from income taxes consisted of the following:


	Year Ended December 31,
	2022		2021		2020

	(In thousands)
Current:
Federal	$	17,973	$	(7,841)	$	1,874
State	8,024		187		1,733
Foreign	192		(234)		647
Total current income taxes	26,189		(7,888)		4,254
Deferred:
Federal	(25,753)		(2,708)		(3,868)
State	(7,976)		(1,217)		(2,494)
Foreign	(561)		(29)		(737)
Total deferred income taxes	(34,290)		(3,954)		(7,099)
Total benefit from income taxes	$	(8,101)	$	(11,842)	$	(2,845)

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

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


	Year Ended December 31,
	2022		2021		2020

	(In thousands)
U.S. federal tax provision at statutory rate	$	(515)	$	13,861	$	6,163
State taxes	38		(814)		(601)
Section 162(m) limitation	3,071		6,382		2,550
Non-deductible expenses	102		363		325

Uncertain tax positions	(776)		(835)		(394)
Share-based compensation tax benefit	(3,264)		(20,717)		(6,929)
Research tax credits	(6,948)		(5,170)		(4,038)

Restructuring impact	—		(6,116)		—
Foreign derived intangible income deduction	(753)		(68)		(204)

Global intangible low-taxed income inclusion	960		195		157
Foreign rate differential	186		17		(102)

Foreign branch taxes	(51)		(9)		288

Transaction cost	68		1,097		422
Other	(219)		(28)		(482)
Total benefit from income taxes	$	(8,101)	$	(11,842)	$	(2,845)

Significant Components of Deferred Tax Assets (Liabilities)

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


	December 31,
	2022		2021

	(In thousands)
Deferred tax assets (liabilities):
Deferred revenues	$	13,514	$	6,892
Share-based compensation	12,064		9,265
Inventory-related items	4,567		4,834
Tax credit carryforwards	12,173		15,311
Reserves and accruals	6,244		8,699
Loss carryforwards	10,255		14,451
Lease liability	12,884		13,179
Convertible debt	15,037		543
Capitalized research and development	30,881		—
Other, net	1,557		1,281
Gross deferred tax assets	119,176		74,455
Valuation allowance	—		—
Total net deferred tax assets	119,176		74,455

Intangibles	(36,357)		(41,158)
Depreciation and amortization	(37,286)		(38,924)

Prepaid expenses	(15,574)		(17,775)
Right-of-use assets	(9,725)		(12,039)
Other, net	—		(381)
Total deferred tax liabilities	(98,942)		(110,277)

Net deferred tax assets (liabilities)	$	20,234	$	(35,822)

Change in the Balance of Gross Unrecognized Tax Benefits

The aggregate change in the balance of gross unrecognized tax benefit, which excludes interest and penalties, for the years ended December 31, 2022, 2021, and 2020:


	(In thousands)
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
Increases related to tax positions taken during a prior period	3
Decreases related to tax positions taken during the prior period	(59)
Increases related to tax positions taken during the current period	1,629
Decreases related to settlements	—
Decreases related to expiration of statute of limitations	(1,238)
Balance as of December 31, 2022	$	9,296