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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income or (Loss) before Income Taxes | Income (loss) before income taxes and equity in losses of unconsolidated investee for the years ended December 31, 2023, 2022 and 2021 is summarized as follows (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
United States |  | $ | 72,936 |  |  | $ | (1,837) |  |  | $ | (15,155) |
Foreign |  | 6,714 |  |  | 5,729 |  |  | 4,653 |
Total income (loss) before income taxes |  | $ | 79,650 |  |  | $ | 3,892 |  |  | $ | (10,502) |
Components of the (Benefit from) Provision for Income Taxes | The components of the (benefit from) provision for income taxes are summarized as follows (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |  |
Federal |  | $ | 5,897 |  |  | $ | 1,672 |  |  | $ | 44 |
State |  | 3,033 |  |  | 1,428 |  |  | 439 |
Foreign |  | 4,890 |  |  | 1,725 |  |  | 1,345 |
Total current |  | $ | 13,820 |  |  | $ | 4,825 |  |  | $ | 1,828 |
Deferred: |  |  |  |  |  |
Federal |  | (19,221) |  |  | 1,905 |  |  | (13,698) |
State |  | (4,648) |  |  | (360) |  |  | (1,131) |
Foreign |  | (1,255) |  |  | (476) |  |  | (124) |
Total deferred |  | $ | (25,124) |  |  | $ | 1,069 |  |  | $ | (14,953) |
(Benefit from) provision for income taxes |  | $ | (11,304) |  |  | $ | 5,894 |  |  | $ | (13,125) |
Schedule of Effective Income Tax Reconciliation | The Company’s actual (benefit from) or provision for tax differed from the amounts computed by applying the Company’s U.S. federal statutory income tax rate to pretax income as a result of the following:
|  | Year Ended December 31,
|  | 2023 |  | 2022(1) |  | 2021(1)
Income tax at federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit |  | 3.0 |  |  | 15.9 |  |  | 7.6 |
Rate differential on foreign operations |  | 0.2 |  |  | (11.7) |  |  | (2.7) |
Foreign taxes |  | 1.5 |  |  | (6.9) |  |  | 1.3 |
Mutual agreement procedure adjustment |  | — |  |  | — |  |  | 2.1 |
Prepaid tax ASC 810-10 |  | 0.2 |  |  | 51.9 |  |  | (0.3) |
Meals expenses |  | 1.9 |  |  | — |  |  | — |
Stock-based compensation |  | (8.5) |  |  | 72.9 |  |  | 86.1 |
Global intangible low-taxed income (“GILTI”) |  | — |  |  | — |  |  | (6.5) |
Permanent differences |  | 1.0 |  |  | 6.9 |  |  | (2.7) |
Foreign Derived Intangible Income |  | (1.3) |  |  | (3.3) |  |  | — |
In-Process Research & Development |  | 4.8 |  |  | — |  |  | — |
Change in valuation allowance |  | (32.0) |  |  | — |  |  | 18.2 |
Research and Development tax credits |  | (5.9) |  |  | — |  |  | — |
Other |  | (0.1) |  |  | 4.7 |  |  | 0.9 |
Effective tax rate |  | (14.2) | % |  | 151.4 | % |  | 125.0 | %
(1) The 2022 and 2021 effective tax rate reconciliations have been updated to conform to the 2023 presentation.
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following (in thousands):
|  | December 31,
|  | 2023 |  | 2022
Deferred tax assets: |  |  |  |
Net operating loss carryforwards |  | $ | 7,972 |  |  | $ | 37,290 |
Tax credits |  | 45,127 |  |  | 41,934 |
Accruals and reserves |  | 10,779 |  |  | 9,236 |
Capitalized research expenses |  | 41,611 |  |  | 22,960 |
Stock-based compensation |  | 9,110 |  |  | 12,478 |
UNICAP adjustments |  | 12,441 |  |  | 10,810 |
ASC 842 Lease Liabilities |  | 56,584 |  |  | 57,161 |
Foreign Withholding Tax |  | 1,078 |  |  | — |
Other |  | 2,787 |  |  | 2,901 |
Gross deferred tax assets |  | 187,489 |  |  | 194,770 |
Valuation allowance |  | (23,957) |  |  | (46,693) |
Total deferred tax assets |  | 163,532 |  |  | 148,077 |
Deferred tax liabilities: |  |  |  |
Depreciation and amortization |  | (26,327) |  |  | (29,781) |
ASC 842 Lease ROU Assets |  | (53,093) |  |  | (54,786) |
Other |  | (3) |  |  | (257) |
Total deferred tax liabilities |  | (79,423) |  |  | (84,824) |
Net deferred tax assets |  | $ | 84,109 |  |  | $ | 63,253 |
Summary of Valuation Allowance | The change in the Company’s deferred tax valuation allowance against net DTAs from January 1, 2021 to December 31, 2023, is as follows (in thousands):
|  | Beginning Balance |  | Additions Charged To Expenses or Other Accounts(1) |  | Deductions Credited to Expenses or Other Accounts(2) |  | Ending Balance
For the year ended: |  |  |  |  |  |  |  |
December 31, 2021 |  | $ | 28,768 |  |  | $ | 10,386 |  |  | $ | (2,044) |  |  | $ | 37,110 |
December 31, 2022 |  | 37,110 |  |  | 9,583 |  |  | — |  |  | 46,693 |
December 31, 2023 |  | 46,693 |  |  | 1,673 |  |  | (24,409) |  |  | 23,957 |
(1) Additions include current year additions charged to expenses and current year build due to increases in net DTAs, return to provision true-ups, and other adjustments. (2) Deductions include current year releases credited to expenses and current year reductions due to decreases in net DTAs, return to provision true-ups, and other adjustments.
Schedule of Unrecognized Tax Benefits | A reconciliation of the change in the gross unrecognized tax benefits from January 1, 2021 to December 31, 2023, is as follows (in thousands):
|  | December 31,
|  | 2023 |  | 2022 |  | 2021
Beginning Balance |  | $ | 11,237 |  |  | $ | 9,026 |  |  | $ | 8,625 |
Gross increase for tax positions of current year |  | 1,702 |  |  | 1,842 |  |  | 1,935 |
Gross increase for tax positions of prior years |  | 15 |  |  | 481 |  |  | 216 |
Gross decrease for tax positions of prior years |  | (366) |  |  | (112) |  |  | (1,411) |
Settlement with taxing authority |  | — |  |  | — |  |  | (339) |
Lapse of statute of limitations |  | (27) |  |  | — |  |  | — |
Ending Balance |  | $ | 12,561 |  |  | $ | 11,237 |  |  | $ | 9,026 |

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