XML 54 R32.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The U.S. and foreign components of income before income taxes were as follows:
| Years Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
U.S. | $ | 199.5 |  |  | $ | 11.8 |  |  | $ | 25.3 |
Foreign | 15.1 |  |  | (2.0) |  |  | (4.8) |
Income before income taxes | $ | 214.6 |  |  | $ | 9.8 |  |  | $ | 20.5 |
Income tax expense consists of the following:
| Years Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
U.S. State | $ | 3.7 |  |  | $ | 1.3 |  |  | $ | 0.5 |
Foreign | 4.1 |  |  | 4.8 |  |  | 2.0 |
Total current tax expense | 7.8 |  |  | 6.1 |  |  | 2.5 |
Deferred: |  |  |  |  |
U.S. Federal | 0.1 |  |  | — |  |  | — |
Foreign | 0.4 |  |  | (0.9) |  |  | 1.2 |
Total deferred tax expense (benefit) | 0.5 |  |  | (0.9) |  |  | 1.2 |
Total income tax expense | $ | 8.3 |  |  | $ | 5.2 |  |  | $ | 3.7 |
Reconciliations of the U.S. federal statutory rate to the Company’s effective tax rate are as follows:
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign rate differential | 0.6 |  |  | 13.2 |  |  | 4.8 |
State taxes, net of federal benefit | 2.4 |  |  | (5.0) |  |  | (9.5) |
Federal and state R&D credits | (5.9) |  |  | (49.4) |  |  | (26.2) |
Stock-based compensation | (3.2) |  |  | (94.8) |  |  | (117.0) |
Extinguishment of debt | — |  |  | — |  |  | (57.5) |
Capital loss carryforward expirations | — |  |  | — |  |  | 52.1 |
Non-deductible officers’ compensation | 1.3 |  |  | 52.4 |  |  | 45.7 |
Permanent items | 0.7 |  |  | 6.3 |  |  | 1.9 |
Foreign income taxed in the U.S. | 0.7 |  |  | 14.5 |  |  | — |
Change in valuation allowance | (10.8) |  |  | 124.4 |  |  | 97.9 |
Tax rate changes | 0.5 |  |  | (30.9) |  |  | — |
Change to prior year R&D credit | (2.8) |  |  | — |  |  | — |
Intercompany transfer of intellectual property | — |  |  | — |  |  | 4.6 |
Other | (0.6) |  |  | 1.7 |  |  | 0.4 |
Effective tax rate | 3.9 | % |  | 53.4 | % |  | 18.2 | %
For all periods presented, no provision for income taxes has been provided on undistributed earnings of the Company’s foreign subsidiaries, except for Canada, because such earnings are indefinitely reinvested in the foreign operations. The Company has recorded a deferred tax liability for withholding tax that could be incurred upon repatriation of earnings from its Canadian subsidiary, the amount of which is not significant. A deferred tax liability related to the repatriation of approximately $32.7 million indefinitely reinvested earnings would not be material to the Company’s consolidated financial statements, primarily due to treaty-based withholding tax rates in the jurisdictions in which the Company operates. During 2023 the Company commenced a multi-year research and development (“R&D”) credit study that resulted in an increase to U.S. federal and state R&D credit carryforwards related to the 2022 tax year. This has been reported as a favorable adjustment to prior year taxes in the effective tax rate and a corresponding increase to the valuation allowance. The Company files federal, state, and foreign tax returns, which are subject to examination by the relevant tax authorities. The Company’s U.S. federal and state tax returns are currently open to examination for tax years 2020 through 2022. In addition, the Company’s U.S. net operating loss carryforwards from 2003 and forward may be subject to examination if the losses are utilized in future years. The following table summarizes the activity related to the Company’s unrecognized tax benefits:
(in millions) |
Unrecognized tax benefits at December 31, 2022 | $ | — |
Additions related to current period tax positions | 2.6 |
Additions related to prior period tax positions | 2.4 |
Unrecognized tax benefits at December 31, 2023 | $ | 5.0 |
As of December 31, 2023, the balance of unrecognized tax benefits, if recognized, would not impact the effective tax rate due to a full valuation allowance against the Company's U.S. deferred tax assets. As of December 31, 2022 and 2021, the Company had no unrecognized tax benefits that would impact the effective tax rates. The Company does not anticipate that the amount of existing unrecognized tax benefits will materially increase or decrease within the next 12 months. No interest and penalties were recognized related to uncertain tax positions for the years ended December 31, 2023, 2022 and 2021 and no interest and penalties were accrued for as of December 31, 2023 and 2022. The components of the net deferred tax asset at the end of each year consist of the following:
| As of December 31,
(in millions) | 2023 |  | 2022
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 91.4 |  |  | $ | 143.5 |
Tax credits | 54.1 |  |  | 33.6 |
Capitalized research and development expenditures | 53.3 |  |  | 30.4 |
Warranty | 2.2 |  |  | 14.6 |
Accrued expenses | 22.9 |  |  | 10.2 |
Amortization of debt discount | 7.8 |  |  | 11.0 |
Inventory capitalization | 6.5 |  |  | 4.1 |
Intangible assets | 8.0 |  |  | 12.9 |
Interest limitation carryforwards | — |  |  | 1.7 |
Incentive compensation | 13.5 |  |  | 9.4 |
Stock-based compensation | 8.0 |  |  | 6.4 |
Other | 5.4 |  |  | 4.5 |
Total deferred tax assets | 273.1 |  |  | 282.3 |
Deferred tax liabilities: |  |  |
Prepaid assets | (7.7) |  |  | (5.3) |
Property, plant and equipment | (38.1) |  |  | (31.5) |
Capitalized contract acquisition costs | (10.4) |  |  | (10.4) |
Unrealized gains on cash flow hedges | (5.1) |  |  | (8.8) |
Other | (7.7) |  |  | (1.9) |
Total deferred tax liabilities | (69.0) |  |  | (57.9) |
Net deferred tax asset before valuation allowance | 204.1 |  |  | 224.4 |
Valuation allowance | (202.9) |  |  | (222.8) |
Net deferred tax asset | $ | 1.2 |  |  | $ | 1.6 |
The Company maintained a valuation allowance of $202.9 million and $222.8 million at December 31, 2023 and 2022, respectively, against U.S. federal, state, and certain foreign deferred tax assets, as management has determined that it is more-likely-than-not that these net deferred tax assets will not be realized. These valuation allowances are based on the weighting of positive and negative evidence, including a history of cumulative tax losses in prior years. The $19.9 million decrease in the Company’s valuation allowance during the year ended December 31, 2023 was primarily due to the utilization of net operating losses and changes in temporary differences in the United States. As of December 31, 2023, the Company’s net operating loss carryforwards were as follows:
(in millions) | Expiration Period |  | Net Operating Loss Carryforwards
U.S. federal | Indefinite |  | $ | 192.0 |
U.S. federal | 2032 - 2037 |  | $ | 150.2 |
State | 2024 - 2042 |  | $ | 238.3 |
Foreign | Indefinite |  | $ | 23.2 |
As of December 31, 2023, the Company’s tax credit carryforwards were as follows:
(in millions) | Expiration Period |  | Tax Credit Carryforwards
U.S. federal | 2024 - 2043 |  | $ | 40.1 |
State | 2024 - 2043 |  | $ | 23.6 |
These loss and credit carryforwards, which may be utilized in a future period, may be subject to limitations based on changes in the ownership of the Company ordinary shares.

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 The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration