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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes For the years ended December 31, 2024, 2023, and 2022, the Company has the following income before income tax from continuing operations (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Domestic | $ | (25,855) |  |  | $ | 62,140 |  |  | $ | 33,339 |
Foreign | 28,373 |  |  | 1,520 |  |  | 2,672 |
Income before income tax from continuing operations | 2,518 |  |  | 63,660 |  |  | 36,011 |
The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Current expense (benefit): |  |  |  |  |
Federal | $ | 18,277 |  |  | $ | (1,186) |  |  | $ | 10,097 |
State | 718 |  |  | 218 |  |  | 193 |
Foreign | 3,355 |  |  | 780 |  |  | 452 |
| 22,350 |  |  | (188) |  |  | 10,742 |
Deferred expense (benefit): |  |  |  |  |
Federal | (17,767) |  |  | 9,374 |  |  | (3,656) |
State | 77 |  |  | 655 |  |  | 34,144 |
Foreign | 1,890 |  |  | — |  |  | — |
| (15,800) |  |  | 10,029 |  |  | 30,488 |
Total income tax expense (benefit) | $ | 6,550 |  |  | $ | 9,841 |  |  | $ | 41,230 |
A reconciliation of income tax expense (benefit) from continuing operations to the amount computed by applying the statutory federal income tax rate to the net income (loss) from continuing operations is summarized as follows (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Tax at federal statutory rate | $ | 529 |  |  | $ | 13,448 |  |  | $ | 7,562 |
Subpart F income | 5,649 |  |  | 479 |  |  | 853 |
Officer compensation | 3,921 |  |  | 844 |  |  | 5,869 |
Foreign tax differential on income/loss of foreign subsidiaries | 1,115 |  |  | (38) |  |  | 103 |
Share-based compensation | 602 |  |  | 1,241 |  |  | 1,279 |
Provision to return adjustments | 293 |  |  | 2,200 |  |  | 2,232 |
Rate change for changes in federal, foreign or state law | 111 |  |  | 342 |  |  | (535) |
Contingent liabilities | 88 |  |  | (116) |  |  | 15 |
Change in uncertain tax positions | 94 |  |  | (7,206) |  |  | (158) |
Debt repurchases | — |  |  | — |  |  | 626 |
State, net of federal benefit | (85) |  |  | 397 |  |  | 264 |
Research and development credits | (324) |  |  | (405) |  |  | 256 |
FDII | (832) |  |  | (1,037) |  |  | (2,395) |
Change in valuation allowance | (1,638) |  |  | (1,184) |  |  | 24,799 |
Foreign tax credits | (3,232) |  |  | — |  |  | — |
Other | 259 |  |  | 876 |  |  | 460 |
| $ | 6,550 |  |  | $ | 9,841 |  |  | $ | 41,230 |
Significant components of our deferred tax assets and liabilities as of December 31, 2024 and 2023 are shown below. We assess the positive and negative evidence to determine if sufficient future taxable income will be generated to realize the existing deferred tax assets. Our evaluation of evidence resulted in management concluding that the majority of our deferred tax assets will be realized. However, we maintain a valuation allowance to offset certain net deferred tax assets as management believes realization of such assets are uncertain as of December 31, 2024, 2023 and 2022. We offset all deferred tax assets and liabilities by jurisdiction, as well as any related valuation allowance, and present them on our consolidated balance sheet as a non-current deferred income tax asset or liability (as applicable). Deferred tax assets (liabilities) are comprised of the following (in thousands):
| December 31,
| 2024 |  | 2023
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 40,385 |  |  | $ | 45,702 |
Research credit carryforwards | 24,404 |  |  | 26,611 |
Capitalized R&D | 7,090 |  |  | 4,550 |
Stock compensation | 10,726 |  |  | 11,886 |
Other | 13,733 |  |  | 15,012 |
| 96,338 |  |  | 103,761 |
Valuation allowance for deferred tax assets | (55,649) |  |  | (57,699) |
Net deferred tax assets | 40,689 |  |  | 46,062 |
Deferred tax liabilities: |  |  |
Identified intangibles | (69,150) |  |  | (66,966) |
Other | (3,991) |  |  | (10,504) |
Net deferred tax liabilities | (73,141) |  |  | (77,470) |
Deferred income taxes, net | $ | (32,452) |  |  | $ | (31,408) |
As of December 31, 2024, we had federal net operating loss carryforwards set to expire through 2037 of $21.4 million and $162.8 million of state net operating loss carryforwards that begin to expire in 2028. We also have $6.2 million of federal research and development credit carryforwards, which expire through 2040. We have $29.5 million of California research and development credit carryforwards that have no expiration date. In addition, we have approximately $98.4 million of non-U.S. net operating loss carryovers and approximately $14.4 million of non-U.S. capital loss carryovers that have no expiration date. As of December 31, 2023, we had federal net operating loss carryforwards set to expire through 2037 of $48.0 million and $165.1 million of state net operating loss carryforwards that begin to expire in 2028. We also had $8.5 million of federal research and development credit carryforwards, which expire through 2040. We had $29.4 million of California research and development credit carryforwards that have no expiration date. In addition, we had approximately $95.5 million of non-U.S. net operating loss carryovers and approximately $16.5 million of non-U.S. capital loss carryovers that have no expiration date. Pursuant to Section 382 and 383 of the Internal Revenue Code of 1986, as amended, utilization of our net operating losses and credits may be subject to annual limitations in the event of any significant future changes in its ownership structure. These annual limitations may result in the expiration of net operating losses and credits prior to utilization. The deferred tax assets as of December 31, 2024 are net of any previous limitations due to Section 382 and 383. We account for income taxes by evaluating a probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Our remaining liabilities for uncertain tax positions are presented net of the deferred tax asset balances on the accompanying consolidated balance sheet. A reconciliation of the amount of unrecognized tax benefits at December 31, 2024, 2023 and 2022 is as follows (in thousands):
| December 31,
| 2024 |  | 2023 |  | 2022
Balance at beginning of year | $ | 22,363 |  |  | $ | 29,096 |  |  | $ | 29,550 |
Additions based on tax positions related to the current year | 27 |  |  | 47 |  |  | 58 |
Additions for tax positions of prior years | 477 |  |  | 3 |  |  | — |
Reductions for tax positions of prior years | (396) |  |  | (6,783) |  |  | (512) |
Balance at end of year | $ | 22,471 |  |  | $ | 22,363 |  |  | $ | 29,096 |
Included in the balance of unrecognized tax benefits at December 31, 2024 is $20.7 million of tax benefits that, if recognized would impact the effective rate. There are no positions for which it is reasonably possible that the uncertain tax benefit will significantly increase or decrease within twelve months. We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2024 and December 31, 2023, we recognized an immaterial amount of interest and penalties. We file income tax returns in the United States, various state jurisdictions, Austria, and United Kingdom with varying statutes of limitations. The federal statute of limitation remains open for the 2021 tax year to the present. he United Kingdom statute of limitation remains open for the 2020 tax year to the present. The Austrian statute of limitation remains open for the 2020 tax year to the present. Net operating loss and research credit carryforwards arising prior to these years are also open to examination if and when utilized. The Company's 2019 and 2020 California tax returns are under examination by the California Franchise Tax Board. The Company does not anticipate that the examination will result in a material adjustment to its financial statements. No other income tax returns are currently under examination. We believe our reserve for unrecognized tax benefits and contingent tax issues is adequate with respect to all open years.

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