XML 64 R51.htm IDEA: XBRL DOCUMENT
v3.25.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Income before provision (benefit) for income taxes included the following components for the years ended December 31 (in thousands):
| 2024 |  | 2023 |  | 2022
United States | $ | 357,484 |  | $ | 134,509 |  | $ | 191,353 |
Foreign | 24,020 |  | 22,552 |  | 4,885
Total | $ | 381,504 |  | $ | 157,061 |  | $ | 196,238
Schedule of 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):
| 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Federal | $ | 60,924 |  | $ | 33,084 |  | $ | 10,804 |
State | 18,298 |  | 10,371 |  | 10,118
Foreign | 3,388 |  | 2,804 |  | 2,892 |
Total current | 82,610 |  | 46,259 |  | 23,814
Deferred: |  |  |  |  |
Federal | (63,073) |  |  | (60,673) |  | 26,180 |
State | (20,838) |  |  | (9,172) |  |  | (2,015) |
Foreign | (1,815) |  | 89 |  |  | (2,146)
Total deferred | (85,726) |  |  | (69,756) |  |  | 22,019 |
Tax impact of unrecorded tax benefits liability | 7,586 |  | 4,775 |  | 3,475 |
Provision for (benefit from) income taxes | $ | 4,470 |  |  | $ | (18,722) |  |  | $ | 49,308 |
Schedule of 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):
| 2024 |  | 2023 |  | 2022
Federal income tax at the statutory rate | $ | 80,120 |  |  | $ | 32,983 |  |  | $ | 41,224 |
Excess stock-based compensation benefit | (83,748) |  |  | (106,522) |  |  | (4,616) |
Executive compensation limitation | 51,858 |  |  | 77,350 |  |  | 5,784 |
R&D credits | (36,571) |  |  | (26,204) |  |  | (13,340) |
Nontaxable gain on investments | (19,727) |  |  | — |  |  | — |
Change in unrecognized tax benefits | 7,356 |  |  | 4,351 |  |  | 3,215 |
Other permanent differences | 5,176 |  |  | 1,201 |  |  | 1,118 |
Global intangible low-taxed income | 3,081 |  |  | 1,890 |  |  | 653 |
Foreign derived intangible income deduction | (2,558) |  |  | (961) |  |  | (2,597) |
Foreign tax credit | (1,914) |  |  | (1,922) |  |  | — |
State income taxes, net of federal benefit | 1,713 |  |  | 3,730 |  |  | 7,915 |
Change in valuation allowance | (903) |  |  | (4,695) |  |  | 10,216 |
Tax effects of intercompany transactions | (222) |  |  | (2,033) |  |  | (417) |
Difference between statutory and foreign tax rates | 801 |  |  | 1,013 |  |  | (428) |
Other | 8 |  |  | 1,097 |  |  | 581 |
Provision for (benefit from) income taxes | $ | 4,470 |  |  | $ | (18,722) |  |  | $ | 49,308 |
Effective tax rate | 1.2 | % |  | (11.9) | % |  | 25.1 | %
Schedule of Components of Deferred Income Tax Assets and Liabilities | Significant components of our deferred income tax assets and liabilities are as follows at December 31, 2024 and December 31, 2023 (in thousands):
| 2024 |  | 2023
Deferred income tax assets: |  |  |
R&D capitalization, net | $ | 193,265 |  |  | $ | 99,746 |
Deferred revenue | 66,948 |  |  | 59,443 |
Stock-based compensation | 51,088 |  |  | 10,544 |
Convertible debt, net | 31,603 |  |  | 39,649 |
Reserves, accruals, and other | 21,634 |  |  | 12,264 |
R&D tax credit carryforward | 19,100 |  |  | 16,554 |
Net operating loss carryforward | 17,824 |  |  | 2,115 |
Accrued bonus | 12,101 |  |  | 11,253 |
Lease liability | 11,966 |  |  | 9,664 |
Inventory reserve | 5,794 |  |  | 1,986 |
Deferred compensation | 4,021 |  |  | 2,803 |
Strategic investments | — |  |  | 6,109 |
Amortization | — |  |  | 4,425 |
Total gross deferred tax assets | 435,344 |  |  | 276,555 |
Valuation allowance | (23,054) |  |  | (21,600) |
Total deferred income tax assets, net of valuation allowance | 412,290 |  |  | 254,955 |
Deferred income tax liabilities: |  |  |
Strategic investments | (42,260) |  |  | — |
Amortization | (36,185) |  |  | — |
Depreciation | (16,739) |  |  | (14,575) |
Right of use asset | (10,639) |  |  | (8,404) |
Prepaid expenses | (2,874) |  |  | (2,223) |
Customer contract asset | (1,174) |  |  | (690) |
Goodwill amortization | (509) |  |  | (314) |
Other | — |  |  | (965) |
Total deferred income tax liabilities | (110,380) |  |  | (27,171) |
Net deferred income tax assets | $ | 301,910 |  |  | $ | 227,784 |
Deferred taxes are reflected in the consolidated balance sheet as follows: |  |  |
Non-current tax assets (included in deferred tax asset, net) | 304,282 |  |  | 227,784 |
Non-current tax liabilities (included in other long-term liabilities) | (2,372) |  |  | — |
Total | $ | 301,910 |  |  | $ | 227,784 |
Schedule of Valuation Allowance | The following table presents the valuation allowance activity for years ended December 31, 2024, 2023 and 2022 (in thousands):
| 2024 |  | 2023 |  | 2022
Balance, beginning of period | $ | 21,600 |  | $ | 26,368 |  | $ | 16,168
Tax provision (benefit) | (576) |  |  | (4,262) |  |  | 10,409 |
Deductions charged to tax provision / benefit | (327) |  | (505) |  | (164)
Additions (reversals) to other accounts | 2,357 |  | (1) |  | (45)
Balance, end of period | $ | 23,054 |  | $ | 21,600 |  | $ | 26,368
Schedule of 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):
| 2024 |  | 2023 |  | 2022
Balance, beginning of period | $ | 25,754 |  | $ | 21,492 |  | $ | 18,249
Increase (decrease) in previous year tax positions | 501 |  |  | (215) |  | 232
Increase in current year tax positions | 7,313 |  | 6,963 |  | 3,343
Decrease due to lapse of statute of limitations | (842) |  |  | (2,486) |  |  | (332) |
Balance, end of period | $ | 32,726 |  | $ | 25,754 |  | $ | 21,492

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration