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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Geographical Breakdown of Income (Loss) before the Provision for Income Taxes | The following is a geographical breakdown of income (loss) before the provision for income taxes:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Domestic | $ | 369 |  |  | $ | 67,103 |  |  | $ | 34,714 |
Foreign | (2,822) |  |  | (1,096) |  |  | (5,365) |
Income (loss) before provision for income taxes | $ | (2,453) |  |  | $ | 66,007 |  |  | $ | 29,349 |
Provision for (Benefit from) Income Taxes | The benefit from income taxes consisted of the following:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Current: |  |  |  |  |
Federal | $ | 17,973 |  |  | $ | (7,841) |  |  | $ | 1,874 |
State | 8,024 |  |  | 187 |  |  | 1,733 |
Foreign | 192 |  |  | (234) |  |  | 647 |
Total current income taxes | 26,189 |  |  | (7,888) |  |  | 4,254 |
Deferred: |  |  |  |  |
Federal | (25,753) |  |  | (2,708) |  |  | (3,868) |
State | (7,976) |  |  | (1,217) |  |  | (2,494) |
Foreign | (561) |  |  | (29) |  |  | (737) |
Total deferred income taxes | (34,290) |  |  | (3,954) |  |  | (7,099) |
Total benefit from income taxes | $ | (8,101) |  |  | $ | (11,842) |  |  | $ | (2,845) |
Difference Between the Provision for (Benefit from) Income Taxes Compared to Income Taxes Computed at the Statutory Federal Tax Rate | The benefit from income taxes differs from the amount computed by applying the statutory federal tax rate as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
U.S. federal tax provision at statutory rate | $ | (515) |  |  | $ | 13,861 |  |  | $ | 6,163 |
State taxes | 38 |  |  | (814) |  |  | (601) |
Section 162(m) limitation | 3,071 |  |  | 6,382 |  |  | 2,550 |
Non-deductible expenses | 102 |  |  | 363 |  |  | 325 |
Uncertain tax positions | (776) |  |  | (835) |  |  | (394) |
Share-based compensation tax benefit | (3,264) |  |  | (20,717) |  |  | (6,929) |
Research tax credits | (6,948) |  |  | (5,170) |  |  | (4,038) |
Restructuring impact | — |  |  | (6,116) |  |  | — |
Foreign derived intangible income deduction | (753) |  |  | (68) |  |  | (204) |
Global intangible low-taxed income inclusion | 960 |  |  | 195 |  |  | 157 |
Foreign rate differential | 186 |  |  | 17 |  |  | (102) |
Foreign branch taxes | (51) |  |  | (9) |  |  | 288 |
Transaction cost | 68 |  |  | 1,097 |  |  | 422 |
Other | (219) |  |  | (28) |  |  | (482) |
Total benefit from income taxes | $ | (8,101) |  |  | $ | (11,842) |  |  | $ | (2,845) |
Significant Components of Deferred Tax Assets (Liabilities) | Significant components of the Company’s deferred tax assets (liabilities) were as follows:
| December 31,
| 2022 |  | 2021
| (In thousands)
Deferred tax assets (liabilities): |  |  |
Deferred revenues | $ | 13,514 |  |  | $ | 6,892 |
Share-based compensation | 12,064 |  |  | 9,265 |
Inventory-related items | 4,567 |  |  | 4,834 |
Tax credit carryforwards | 12,173 |  |  | 15,311 |
Reserves and accruals | 6,244 |  |  | 8,699 |
Loss carryforwards | 10,255 |  |  | 14,451 |
Lease liability | 12,884 |  |  | 13,179 |
Convertible debt | 15,037 |  |  | 543 |
Capitalized research and development | 30,881 |  |  | — |
Other, net | 1,557 |  |  | 1,281 |
Gross deferred tax assets | 119,176 |  |  | 74,455 |
Valuation allowance | — |  |  | — |
Total net deferred tax assets | 119,176 |  |  | 74,455 |
Intangibles | (36,357) |  |  | (41,158) |
Depreciation and amortization | (37,286) |  |  | (38,924) |
Prepaid expenses | (15,574) |  |  | (17,775) |
Right-of-use assets | (9,725) |  |  | (12,039) |
Other, net | — |  |  | (381) |
Total deferred tax liabilities | (98,942) |  |  | (110,277) |
Net deferred tax assets (liabilities) | $ | 20,234 |  |  | $ | (35,822) |
Change in the Balance of Gross Unrecognized Tax Benefits | The aggregate change in the balance of gross unrecognized tax benefit, which excludes interest and penalties, for the years ended December 31, 2022, 2021, and 2020:
| (In thousands)
Balance as of December 31, 2019 | $ | 16,775 |
Increases related to tax positions taken during a prior period | 88 |
Decreases related to tax positions taken during the prior period | — |
Increases related to tax positions taken during the current period | 2,294 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (911) |
Balance as of December 31, 2020 | 18,246 |
Increases related to tax positions taken during a prior period | 40 |
Decreases related to tax positions taken during the prior period | (8,908) |
Increases related to tax positions taken during the current period | 1,219 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (1,636) |
Balance as of December 31, 2021 | 8,961 |
Increases related to tax positions taken during a prior period | 3 |
Decreases related to tax positions taken during the prior period | (59) |
Increases related to tax positions taken during the current period | 1,629 |
Decreases related to settlements | — |
Decreases related to expiration of statute of limitations | (1,238) |
Balance as of December 31, 2022 | $ | 9,296 |

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