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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income (Loss) Before Income Taxes | The components of total income (loss) before taxes from continuing operations are as follows (in thousands):
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
U.S. |  | $ | 110,796 |  |  | $ | 71,485 |  |  | $ | 222,930 |
Foreign |  |  | (1,024 | ) |  |  | 1,326 |  |  |  | 1,564 |
Income before taxes from continuing operations |  | $ | 109,772 |  |  | $ | 72,811 |  |  | $ | 224,494 |
Components of Provision for Income Taxes | The provision for (benefit from) income taxes consisted of the following (in thousands):
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | (5,156 | ) |  | $ | (5,578 | ) |  | $ | (20,157 | )
Foreign |  |  | 9,937 |  |  |  | 14,045 |  |  |  | 24,107 |
State and local |  |  | 8,636 |  |  |  | 4,201 |  |  |  | 8,083 |
Total current |  |  | 13,417 |  |  |  | 12,668 |  |  |  | 12,033 |
Deferred: |  |  |  |  |  |  |  |  |
U.S. federal |  |  | (36,363 | ) |  |  | (576 | ) |  |  | (25,322 | )
Foreign |  |  | 4,730 |  |  |  | (4,935 | ) |  |  | — |
State and local |  |  | (10,404 | ) |  |  | (2,329 | ) |  |  | (2,023 | )
Total deferred |  |  | (42,037 | ) |  |  | (7,840 | ) |  |  | (27,345 | )
Provision for (benefit from) income taxes |  | $ | (28,620 | ) |  | $ | 4,828 |  |  | $ | (15,312 | )
Component of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets |  |  |  |  |  |
Net operating losses |  | $ | 63,702 |  |  | $ | 74,463 |
Research tax credits |  |  | 78,340 |  |  |  | 80,468 |
Foreign tax credits |  |  | 29,077 |  |  |  | 69,637 |
Expenses not currently deductible |  |  | 18,823 |  |  |  | 14,434 |
Fixed and intangible assets |  |  | — |  |  |  | 207 |
Deferred revenue |  |  | 8,428 |  |  |  | 6,385 |
Capitalized research expenses |  |  | 38,806 |  |  |  | 34,963 |
Lease liability |  |  | 1,598 |  |  |  | 1,715 |
Gross deferred tax assets |  |  | 238,774 |  |  |  | 282,272 |
Valuation allowance |  |  | (120,508 | ) |  |  | (178,731 | )
Net deferred tax assets |  |  | 118,266 |  |  |  | 103,541 |
Deferred tax liabilities |  |  |  |  |  |
Revenue recognition |  |  | (4,288 | ) |  |  | (1,445 | )
Operating leases |  |  | (1,388 | ) |  |  | (1,508 | )
Acquired intangible assets |  |  | (74,075 | ) |  |  | (101,679 | )
Other |  |  | (3,237 | ) |  |  | (4,076 | )
Net deferred tax liabilities |  | $ | 35,278 |  |  | $ | (5,167 | )
Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Effective Tax | A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate is as follows:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
U.S. federal statutory rate |  | $ | 23,052 |  |  | $ | 15,291 |  |  | $ | 47,144 |
State, net of federal benefit |  |  | (2,712 | ) |  |  | (617 | ) |  |  | 2,094 |
Stock-based compensation expense |  |  | 235 |  |  |  | (129 | ) |  |  | 1,222 |
Executive compensation limitation |  |  | 1,236 |  |  |  | 2,430 |  |  |  | 235 |
Research tax credit |  |  | (2,705 | ) |  |  | 353 |  |  |  | 694 |
Foreign withholding tax |  |  | 5,969 |  |  |  | 1,575 |  |  |  | 1,250 |
Transaction costs |  |  | 1,308 |  |  |  | 145 |  |  |  | 1,996 |
Foreign tax rate differential |  |  | 4,960 |  |  |  | (3,249 | ) |  |  | (288 | )
Foreign tax credit |  |  | 10,525 |  |  |  | 10,714 |  |  |  | (2,603 | )
Change in valuation allowance |  |  | (78,699 | ) |  |  | (33,526 | ) |  |  | (63,346 | )
U.S. tax reform |  |  | 541 |  |  |  | 192 |  |  |  | 89 |
Unrecognized tax benefits |  |  | (3,318 | ) |  |  | 4,548 |  |  |  | 6,424 |
Change in estimates |  |  | (3,478 | ) |  |  | (85 | ) |  |  | (1,217 | )
Foreign exchange and interest |  |  | 4,516 |  |  |  | 6,956 |  |  |  | (7,438 | )
Divestitures |  |  | 15,396 |  |  |  | — |  |  |  | — |
Foreign derived intangible income |  |  | (4,697 | ) |  |  | — |  |  |  | — |
Others |  |  | (749 | ) |  |  | 230 |  |  |  | (1,568 | )
Total |  | $ | (28,620 | ) |  | $ | 4,828 |  |  | $ | (15,312 | )
Reconciliation of Unrecognized Tax Benefits | The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands):
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Total unrecognized tax benefits at January 1 |  | $ | 230,076 |  |  | $ | 225,279 |  |  | $ | 100,037 |
Increases due to the Mergers |  |  | — |  |  |  | — |  |  |  | 102,582 |
Increases for tax positions related to the current year |  |  | 3,872 |  |  |  | 6,876 |  |  |  | 21,199 |
Increases for tax positions related to prior years |  |  | 229 |  |  |  | 5,195 |  |  |  | 3,245 |
Decreases for tax positions related to prior years |  |  | (4,685 | ) |  |  | (7,274 | ) |  |  | (1,784 | )
Total unrecognized tax benefits at December 31 |  | $ | 229,492 |  |  | $ | 230,076 |  |  | $ | 225,279 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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