Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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

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


	Year Ended December 31,
	2023		2022		2021

	(In thousands)
Domestic	$	(28,105)	$	369	$	67,103
Foreign	7,997		(2,822)		(1,096)
Income (loss) before income taxes	$	(20,108)	$	(2,453)	$	66,007

Provision for (Benefit from) Income Taxes

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


	Year Ended December 31,
	2023		2022		2021

	(In thousands)
Current:
Federal	$	8,556	$	17,973	$	(7,841)
State	1,471		8,024		187
Foreign	840		192		(234)
Total current income taxes	10,867		26,189		(7,888)
Deferred:
Federal	(8,002)		(25,753)		(2,708)
State	(2,261)		(7,976)		(1,217)
Foreign	(341)		(561)		(29)
Total deferred income taxes	(10,604)		(34,290)		(3,954)
Total provision for (benefit from) income taxes	$	263	$	(8,101)	$	(11,842)

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,
	2023		2022		2021

	(In thousands)
U.S. federal tax provision at statutory rate	$	(4,223)	$	(515)	$	13,861
State taxes	(624)		38		(814)
Section 162(m) limitation	1,286		3,071		6,382
Non-deductible expenses	531		134		363

Uncertain tax positions	(620)		(776)		(835)
Share-based compensation tax expense (benefit)	7,384		(3,264)		(20,717)
Research tax credits	(4,587)		(6,948)		(5,170)

Restructuring impact	—		—		(6,116)
Foreign-derived intangible income deduction	(325)		(753)		(68)

Global intangible low-taxed income inclusion	—		960		195
Foreign rate differential	219		186		(170)

Foreign branch taxes	6		(51)		(9)

Transaction cost	—		68		1,097
Provision to return true up	697		(84)		205
State rate true up	528		(135)		(80)
Other	(9)		(32)		34
Total provision for (benefit from) income taxes	$	263	$	(8,101)	$	(11,842)

Significant Components of Deferred Tax Assets (Liabilities)

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


	December 31,
	2023		2022

	(In thousands)
Deferred tax assets (liabilities):
Deferred revenues	$	11,343	$	13,514
Share-based compensation	11,763		12,064
Inventory-related items	5,136		4,567
Tax credit carryforwards	12,505		12,173
Reserves and accruals	5,660		6,244
Loss carryforwards	7,802		10,255
Lease liability	11,457		12,884
Convertible debt	9,649		15,037
Capitalized research and development	41,635		30,881
Other, net	591		1,557
Gross deferred tax assets	117,541		119,176
Valuation allowance	—		—
Total net deferred tax assets	117,541		119,176

Intangibles	(30,366)		(36,357)
Depreciation and amortization	(35,402)		(37,286)

Prepaid expenses	(13,858)		(15,574)
Right-of-use assets	(6,626)		(9,725)
Other, net	(8)		—
Total deferred tax liabilities	(86,260)		(98,942)

Net deferred tax assets	$	31,281	$	20,234

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, 2023, 2022, and 2021:


	(In thousands)
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 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 expiration of statute of limitations	(1,238)
Balance as of December 31, 2022	9,296
Increases related to tax positions taken during a prior period	750
Decreases related to tax positions taken during the prior period	(161)
Increases related to tax positions taken during the current period	1,566
Decreases related to expiration of statute of limitations	(703)
Balance as of December 31, 2023	$	10,748