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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes for the years ended December 31, 2024, 2023 and 2022 consists of the following:

 202420232022
Current tax expense :
 
Federal$4,084 $2,066 $98 
State2,875 3,826 1,582 
Foreign11,445 9,777 14,082 
 18,404 15,669 15,762 
Deferred income tax expense (benefit):
Federal10,351 2,826 (4,096)
State681 (893)(1,636)
Foreign1,170 (1,233)(310)
12,202 700 (6,042)
Provision for income taxes
$30,606 $16,369 $9,720 
A reconciliation between income taxes computed at the statutory federal rate and the provision for income taxes for the years ended December 31, 2024, 2023 and 2022 follows:

 202420232022
Tax provision at statutory rate based on income before income taxes21.0 %21.0 %21.0 %
State income taxes, net of federal tax benefit1.6 2.9 (1.4)
Foreign income taxes1.6 2.8 (1.8)
Non-deductible/non-taxable items0.9 2.0 (2.9)
US tax on worldwide earnings at different rates(1.8)(3.1)(1.8)
Federal research credit(1.5)(3.0)2.4 
Contingent consideration
(4.6)(1.8)— 
Valuation allowance— (0.5)2.5 
Stock-based compensation1.6 — 1.5 
Non-deductible premium on extinguishment and change in fair value of convertible notes— — (32.2)
Other, net— — (1.0)
 18.8 %20.3 %(13.7)%

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, 2024 and 2023 are as follows:

 20242023
Assets: 
Inventory$5,771 $4,577 
Net operating losses1,700 2,809 
Capitalized research and development20,615 16,573 
Deferred compensation3,305 3,114 
Accounts receivable3,796 4,002 
Compensation and benefits14,754 18,234 
Accrued pension1,556 1,658 
Research and development credit2,972 13,090 
Interest limitation26,234 18,332 
Convertible notes hedge21,205 28,765 
Lease liabilities7,772 3,033 
Other4,482 6,290 
114,162 120,477 
Liabilities: 
Goodwill and intangible assets155,931 153,692 
Depreciation1,120 2,248 
State taxes10,670 9,732 
Unremitted foreign earnings1,893 1,557 
Lease right-of-use assets7,555 2,939 
 177,169 170,168 
Net liability$(63,007)$(49,691)

Income (loss) before income taxes consists of the following U.S. and foreign income (loss):

 202420232022
U.S. income (loss)$124,401 $51,568 $(96,114)
Foreign income38,628 29,260 25,252 
Total income (loss)$163,029 $80,828 $(70,862)
 
As of December 31, 2024, the amount of federal net operating loss carryforward was $1.2 million and begins to expire in 2027. As of December 31, 2024, the amount of federal research credit carryforward available was $3.0 million.  These credits begin to expire in 2029.  

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 $34.8 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 $1.2 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 2022.
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,:

 202420232022
Balance as of January 1,$1,704 $200 $200 
Increases for positions taken in prior periods
— 1,504 — 
Decreases in unrecorded tax positions related to settlement with the taxing authorities(350)— — 
Decreases in unrecorded tax positions related to lapse of statute of limitations(200)— — 
Balance as of December 31,$1,154 $1,704 $200 
If the total unrecognized tax benefits of $1.2 million at December 31, 2024 were recognized, it would reduce our annual effective tax rate.  The amount of interest accrued in 2022, 2023 and 2024 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).