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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes for the years ended December 31, 2023, 2022 and 2021 consists of the following:
| 2023 |  | 2022 |  | 2021
Current tax expense (benefit): |  |  |  |  |
Federal | $ | 2,066 |  |  | $ | 98 |  |  | $ | (97) |
State | 3,826 |  |  | 1,582 |  |  | 609 |
Foreign | 9,777 |  |  | 14,082 |  |  | 7,046 |
| 15,669 |  |  | 15,762 |  |  | 7,558 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | 2,826 |  |  | (4,096) |  |  | 3,466 |
State | (893) |  |  | (1,636) |  |  | 1,449 |
Foreign | (1,233) |  |  | (310) |  |  | (1,910) |
| 700 |  |  | (6,042) |  |  | 3,005 |
Provision for income taxes | $ | 16,369 |  |  | $ | 9,720 |  |  | $ | 10,563 |
A reconciliation between income taxes computed at the statutory federal rate and the provision for income taxes for the years ended December 31, 2023, 2022 and 2021 follows:
| 2023 |  | 2022 |  | 2021
Tax provision at statutory rate based on income before income taxes | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit | 2.9 |  |  | (1.4) |  |  | 3.7 |
Foreign income taxes | 2.8 |  |  | (1.8) |  |  | 3.1 |
Non-deductible/non-taxable items | 2.0 |  |  | (2.9) |  |  | 0.8 |
US tax on worldwide earnings at different rates | (3.1) |  |  | (1.8) |  |  | (0.4) |
Federal research credit | (3.0) |  |  | 2.4 |  |  | (2.3) |
Contingent consideration | (1.8) |  |  | — |  |  | — |
Valuation allowance | (0.5) |  |  | 2.5 |  |  | (2.2) |
Stock-based compensation | — |  |  | 1.5 |  |  | (9.4) |
Non-deductible premium on extinguishment and change in fair value of convertible notes | — |  |  | (32.2) |  |  | — |
Other, net | — |  |  | (1.0) |  |  | 0.1 |
| 20.3 | % |  | (13.7) | % |  | 14.4 | %
The Company has elected to account for Global Intangible Low Tax Income ("GILTI") using the period cost method. The net impact of GILTI including the allowable GILTI deduction is presented in the rate reconciliation as a component of “US tax on worldwide earnings at different rates”. The tax effects of the significant temporary differences which comprise the deferred income tax assets and liabilities at December 31, 2023 and 2022 are as follows:
| 2023 |  | 2022
Assets: |  |  |
Inventory | $ | 4,577 |  |  | $ | 2,939 |
Net operating losses | 2,809 |  |  | 12,721 |
Capitalized research and development | 16,573 |  |  | 11,402 |
Deferred compensation | 3,114 |  |  | 3,012 |
Accounts receivable | 4,002 |  |  | 3,580 |
Compensation and benefits | 18,234 |  |  | 8,723 |
Accrued pension | 1,658 |  |  | 2,530 |
Research and development credit | 13,090 |  |  | 16,785 |
Interest limitation | 18,332 |  |  | 9,116 |
Convertible notes hedge | 28,765 |  |  | 36,204 |
Lease liabilities | 3,033 |  |  | 2,735 |
Other | 6,290 |  |  | 4,134 |
Less: valuation allowances | — |  |  | (543) |
| 120,477 |  |  | 113,338 |
Liabilities: |  |  |
Goodwill and intangible assets | 153,692 |  |  | 152,155 |
Depreciation | 2,248 |  |  | 2,373 |
State taxes | 9,732 |  |  | 11,733 |
Unremitted foreign earnings | 1,557 |  |  | 1,573 |
Lease right-of-use assets | 2,939 |  |  | 2,579 |
| 170,168 |  |  | 170,413 |
Net liability | $ | (49,691) |  |  | $ | (57,075) |
Income (loss) before income taxes consists of the following U.S. and foreign income (loss):
| 2023 |  | 2022 |  | 2021
U.S. income (loss) | $ | 51,568 |  |  | $ | (96,114) |  |  | $ | 45,260 |
Foreign income | 29,260 |  |  | 25,252 |  |  | 27,845 |
Total income (loss) | $ | 80,828 |  |  | $ | (70,862) |  |  | $ | 73,105 |
As of December 31, 2023, the amount of federal net operating loss carryforward was $1.9 million and begins to expire in 2027. As of December 31, 2023, the amount of federal research credit carryforward available was $13.1 million. These credits begin to expire in 2028. We have accrued tax liabilities related to the amount of unremitted earnings at December 31, 2017 and certain subsequent unremitted earnings as these are not considered permanently reinvested. Deferred taxes have not been accrued on unremitted earnings subsequent to December 31, 2017 that are considered permanently reinvested. The amount of such untaxed foreign earnings for the periods occurring after December 2017 totaled $26.9 million. If we were to repatriate these funds, we would be required to accrue and pay taxes on such amounts. The Company has estimated foreign withholding taxes of $1.0 million would be due if these earnings were repatriated. The Company is subject to taxation in the United States and various states and foreign jurisdictions. Taxing authority examinations can involve complex issues and may require an extended period of time to resolve. Our federal income tax returns have been examined by the Internal Revenue Service (“IRS”) for calendar years ending through 2019. We recognize tax liabilities in accordance with the provisions for accounting for uncertainty in income taxes. Such guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The following table summarizes the activity related to our unrecognized tax benefits for the years ending December 31,:
| 2023 |  | 2022 |  | 2021
Balance as of January 1, | $ | 200 |  |  | $ | 200 |  |  | $ | 200 |
Increases for positions taken in prior periods | 1,504 |  |  | — |  |  | — |
Decreases in unrecorded tax positions related to settlement with the taxing authorities | — |  |  | — |  |  | — |
Decreases in unrecorded tax positions related to lapse of statute of limitations | — |  |  | — |  |  | — |
Balance as of December 31, | $ | 1,704 |  |  | $ | 200 |  |  | $ | 200 |
If the total unrecognized tax benefits of $1.7 million at December 31, 2023 were recognized, it would reduce our annual effective tax rate. The amount of interest accrued in 2021, 2022 and 2023 related to these unrecognized tax benefits was not material and is included in the provision for income taxes in the consolidated statements of comprehensive income (loss).

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