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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Taxes |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Income (loss) before provision (benefit) for income taxes included the following components for the years ended December 31 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2022 |  | 2021 |  | 2020
United States | ​ | $ | 191,631 | ​ | $ | (146,995) | ​ | $ | (11,529)
Foreign | ​ | ​ | 4,887 | ​ | ​ | 5,620 | ​ | ​ | 5,238
Total | ​ | $ | 196,518 | ​ | $ | (141,375) | ​ | $ | (6,291)
​
Significant Components of the Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes were as follows for the years ended December 31 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2022 |  | 2021 |  | 2020
Current: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 10,804 | ​ | $ | (331) | ​ | $ | 5,277
State | ​ | ​ | 10,118 | ​ | ​ | 85 | ​ | ​ | 3,886
Foreign | ​ | ​ | 2,892 | ​ | ​ | (60) | ​ | ​ | 1,943
Total current | ​ | ​ | 23,814 | ​ |  | (306) | ​ |  | 11,106
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | ​ | 26,238 | ​ |  | (65,557) | ​ |  | (10,175)
State | ​ | ​ | (2,002) | ​ |  | (15,266) | ​ |  | (3,111)
Foreign | ​ | ​ | (2,146) | ​ |  | 478 | ​ |  | (3,131)
Total deferred | ​ | ​ | 22,090 | ​ |  | (80,345) | ​ |  | (16,417)
Tax impact of unrecorded tax benefits liability | ​ | ​ | 3,475 | ​ |  | (706) | ​ |  | 744
Provision for income taxes (Income tax benefit) | ​ | $ | 49,379 |  | $ | (81,357) |  | $ | (4,567)
​
Reconciliation of the Company's Effective Income Tax Rate to the Federal Statutory Rate | A reconciliation of our effective income tax rate to the federal statutory rate follows for the years ended December 31 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2022 |  | 2021 |  | 2020 | ​
Federal income tax at the statutory rate | ​ | $ | 41,283 | ​ | $ | (29,691) | ​ | $ | (1,321) |
State income taxes, net of federal benefit | ​ | ​ | 7,928 | ​ | ​ | (12,717) | ​ | ​ | 935 |
Difference between statutory and foreign tax rates | ​ | ​ | (428) | ​ | ​ | (155) | ​ | ​ | (86) | ​
Other permanent differences (1) | ​ | ​ | 1,771 | ​ | ​ | 1,842 | ​ | ​ | 794 |
Foreign derived intangible income deduction | ​ | ​ | (2,597) | ​ | ​ | — | ​ | ​ | (902) | ​
Executive compensation limitation | ​ | ​ | 5,784 | ​ |  | 180,509 | ​ | ​ | 15,463 | ​
R&D credits | ​ | ​ | (13,340) | ​ |  | (34,376) | ​ |  | (10,246) | ​
Return to provision adjustment | ​ | ​ | (757) | ​ |  | 204 | ​ |  | (1,078) | ​
Change in liability for unrecognized tax benefits | ​ | ​ | 3,215 | ​ |  | 10,188 | ​ |  | 987 | ​
Excess stock-based compensation benefit | ​ | ​ | (4,616) | ​ |  | (205,483) | ​ |  | (9,002) | ​
Change in valuation allowance | ​ | ​ | 10,216 | ​ |  | 8,961 | ​ |  | 163 | ​
Tax effects of intercompany transactions | ​ | ​ | (417) | ​ |  | 96 | ​ |  | (389) | ​
Other | ​ | ​ | 1,337 | ​ |  | (735) | ​ |  | 115 | ​
Provision for income taxes (Income tax benefit) | ​ | $ | 49,379 | ​ | $ | (81,357) | ​ | $ | (4,567) | ​
Effective tax rate | ​ | ​ | 25.1 | % |  | 57.5 | % |  | 72.6 | %
(1) | Other permanent differences include certain expenses that are not deductible for tax purposes including meals and entertainment, lobbying fees, and taxable income as a result of global intangible low-tax income ("GILTI").
​
Components of Deferred Income Tax Assets and Liabilities | Significant components of our deferred income tax assets and liabilities are as follows at December 31 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2022 |  | 2021
Deferred income tax assets: | ​ | ​ | ​ | ​ | ​ | ​
Net operating loss carryforward | ​ | $ | 4,874 | ​ | $ | 68,353
Deferred revenue | ​ | ​ | 47,586 | ​ | ​ | 27,031
Deferred compensation | ​ | ​ | 1,575 | ​ | ​ | 1,414
Lease liability | ​ | ​ | 9,973 | ​ |  | 5,886
Inventory reserve | ​ | ​ | 1,279 | ​ |  | 684
Stock based compensation | ​ | ​ | 15,374 | ​ |  | 10,913
Amortization | ​ | ​ | 2,820 | ​ |  | 2,672
R&D tax credit carryforward | ​ | ​ | 12,826 | ​ |  | 29,249
Reserves, accruals, and other | ​ | ​ | 17,732 | ​ |  | 14,717
R&D capitalization, net | ​ | ​ | 46,122 | ​ |  | —
Convertible debt, net | ​ | ​ | 48,378 | ​ | ​ | —
Total deferred income tax assets | ​ | ​ | 208,539 | ​ |  | 160,919
Deferred income tax liabilities: | ​ | ​ | ​ | ​ | ​ | ​
Customer contract asset | ​ | ​ | (552) | ​ |  | (1,104)
Right of use asset | ​ | ​ | (8,748) | ​ |  | (5,008)
Depreciation | ​ | ​ | (10,272) | ​ |  | (8,938)
Strategic investments | ​ | ​ | (4,615) | ​ | ​ | (2,653)
Prepaid expenses | ​ | ​ | (1,119) | ​ | ​ | (594)
Other | ​ | ​ | — | ​ |  | (72)
Total deferred income tax liabilities | ​ | ​ | (25,306) | ​ |  | (18,369)
Net deferred income tax assets before valuation allowance | ​ | ​ | 183,233 | ​ |  | 142,550
Valuation allowance | ​ | ​ | (26,368) | ​ |  | (16,168)
Net deferred income tax assets | ​ | $ | 156,865 |  | $ | 126,382
​
Roll Forward of Liability for Unrecognized Tax Benefits Exclusive of Accrued Interest | The following table presents a roll forward of our liability for unrecognized tax benefits, exclusive of accrued interest, as of December 31 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2022 |  | 2021 |  | 2020
Balance, beginning of period | ​ | $ | 18,249 | ​ | $ | 7,657 | ​ | $ | 6,861
Increase (decrease) in previous year tax positions | ​ | ​ | 232 | ​ | ​ | 22 | ​ | ​ | (34)
Increase in current year tax positions | ​ | ​ | 3,343 | ​ | ​ | 11,416 | ​ | ​ | 950
Decrease due to lapse of statutes of limitations | ​ | ​ | (332) | ​ | ​ | (846) | ​ | ​ | (120)
Balance, end of period | ​ | $ | 21,492 |  | $ | 18,249 |  | $ | 7,657
​

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