XML 83 R19.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following:
| Years Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 3.4 |  |  | $ | (0.5) |  |  | $ | (1.9) |
State | 1.8 |  |  | 1.9 |  |  | 3.6 |
Foreign | 0.2 |  |  | 0.5 |  |  | 0.1 |
Total current | 5.4 |  |  | 1.9 |  |  | 1.8 |
Deferred: |  |  |  |  |
Federal | (51.8) |  |  | (25.8) |  |  | (33.7) |
State | (5.2) |  |  | (4.8) |  |  | 5.1 |
Foreign | 0.1 |  |  | (2.9) |  |  | 0.1 |
Change in valuation allowance | 52.6 |  |  | 3.0 |  |  | (3.2) |
Total deferred | (4.3) |  |  | (30.5) |  |  | (31.7) |
Total income tax expense (benefit) | $ | 1.1 |  |  | $ | (28.6) |  |  | $ | (29.9) |
Loss before income taxes consists of the following:
| Years Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
United States | $ | (263.2) |  |  | $ | (141.3) |  |  | $ | (53.8) |
Foreign | 1.0 |  |  | 0.7 |  |  | (3.3) |
Total | $ | (262.2) |  |  | $ | (140.6) |  |  | $ | (57.1) |
The differences between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations were as follows:
| Years Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Federal income tax expense at the statutory rate | $ | (54.9) |  |  | 21.0 | % |  | $ | (29.5) |  |  | 21.0 | % |  | $ | (12.0) |  |  | 21.0 | %
State income taxes, net of federal benefit | (4.1) |  |  | 1.6 | % |  | (3.3) |  |  | 2.3 | % |  | (1.8) |  |  | 3.2 | %
Research and development credits | (1.6) |  |  | 0.6 | % |  | (3.5) |  |  | 2.5 | % |  | 2.5 |  |  | (4.4) | %
Uncertain tax positions | 3.7 |  |  | (1.4) | % |  | 0.6 |  |  | (0.4) | % |  | (3.0) |  |  | 5.3 | %
Incentive stock option and employee stock purchase plan expense | 1.2 |  |  | (0.5) | % |  | 2.5 |  |  | (1.8) | % |  | 0.7 |  |  | (1.2) | %
Foreign rate differential | (0.4) |  |  | 0.2 | % |  | — |  |  | — | % |  | 0.5 |  |  | (0.9) | %
Change in valuation allowance | 52.6 |  |  | (20.1) | % |  | 2.6 |  |  | (1.8) | % |  | (3.2) |  |  | 5.6 | %
CARES Act | — |  |  | — | % |  | — |  |  | — | % |  | 2.7 |  |  | (4.7) | %
Non-deductible meals and entertainment | — |  |  | — | % |  | — |  |  | — | % |  | 0.1 |  |  | (0.2) | %
Non-deductible officer compensation | 3.0 |  |  | (1.1) | % |  | 3.5 |  |  | (2.5) | % |  | 3.3 |  |  | (5.8) | %
Non-deductible legal settlement | — |  |  | — | % |  | — |  |  | — | % |  | 2.5 |  |  | (4.5) | %
Acquisitions, dispositions, and contingent consideration | 0.1 |  |  | — | % |  | (0.1) |  |  | 0.1 | % |  | (23.0) |  |  | 40.3 | %
Other, net | 1.5 |  |  | (0.7) | % |  | (1.4) |  |  | 0.9 | % |  | 0.8 |  |  | (1.4) | %
Total income tax expense (benefit) | $ | 1.1 |  |  | -0.4 | % |  | $ | (28.6) |  |  | 20.3 | % |  | $ | (29.9) |  |  | 52.3 | %
The significant components of the Company’s deferred tax assets and liabilities were comprised of the following:
| December 31,
(in millions) | 2023 |  | 2022
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 77.1 |  |  | $ | 66.6 |
Stock compensation expense | 5.0 |  |  | 3.6 |
Research and development credits | 20.8 |  |  | 19.9 |
Lease liability | 28.0 |  |  | 35.2 |
Section 174 capitalized costs | 38.4 |  |  | 21.2 |
Accrued expenses and liabilities | 22.5 |  |  | 10.8 |
Other, net | 3.2 |  |  | 3.6 |
Total gross deferred tax assets | 195.0 |  |  | 160.9 |
Less valuation allowance | (95.0) |  |  | (42.4) |
Total deferred tax assets | 100.0 |  |  | 118.5 |
Deferred tax liabilities: |  |  |
Intangible assets | 84.2 |  |  | 93.8 |
Lease right-of-use assets | 15.5 |  |  | 25.4 |
Property, plant and equipment | 1.9 |  |  | 2.8 |
Total deferred tax liabilities | 101.6 |  |  | 122.0 |
Net deferred tax liability | $ | (1.6) |  |  | $ | (3.5) |
The Tax Cuts and Jobs Act (TCJA), passed in 2017, amended Section 174 of the Internal Revenue Code to require that specific research and experimental (R&E) expenditures be capitalized and amortized over five years for U.S. R&E expenditures or 15 years for non-U.S. R&E expenditures beginning in the Company’s fiscal year ended December 31, 2022. Although Congress has considered legislation that would defer, modify or repeal the capitalization and amortization requirement, there is no assurance that the provision will be deferred, repealed or otherwise modified. If the requirement is not modified, the Company may be required to utilize some of its federal and state tax attributes and there may be increases to state cash taxes or tax expense. The Company has incurred a cumulative three-year loss. Pursuant to ASC 740, Income Taxes ("ASC 740"), the negative evidence of a cumulative loss may be difficult to overcome. Due to cumulative book losses and the lack of sufficient positive evidence, the Company has applied a valuation allowance to all applicable deferred tax assets, leaving a remaining deferred tax liability balance of $1.6 million. At December 31, 2023, the Company had the following net operating loss and research credit carryforwards (tax effected), with their respective expiration periods. Certain carryforwards are subject to the limitations of Section 382 and 383 of the Internal Revenue Code as indicated (in millions):
Carryforwards |  | Amount |  | Subject to sections 382, 383 |  | Expires beginning in year |  | Through
Federal net operating loss |  | $ | 38.5 |  |  | Yes |  | 2033 |  | Indefinite
Federal capital loss |  | 13.8 |  |  | No |  | 2026 |  | 2028
Utah net operating loss |  | 0.8 |  |  | No |  | 2024 |  | Indefinite
California net operating loss |  | 4.4 |  |  | Yes |  | 2029 |  | 2043
Other state net operating loss |  | 8.6 |  |  | Yes |  | Various |  | Various
Foreign net operating losses (various jurisdictions) |  | 10.8 |  |  | No |  | Various |  | Various
Federal research credit |  | 10.5 |  |  | Yes |  | 2027 |  | 2043
Utah research credit |  | 5.4 |  |  | No |  | 2024 |  | 2037
California research credit |  | 4.8 |  |  | No |  | Indefinite |  | Indefinite
Due to the cumulative losses that have been incurred to date in foreign operations, the changes of the Tax Cuts and Jobs Act and the election to treat its foreign subsidiaries as disregarded entities, no deferred taxes related to the Company’s foreign operations have been recorded. For those foreign entities for which an election has been made to be treated as disregarded for U.S. tax purposes, the appropriate U.S. jurisdiction deferred tax assets and liabilities have been recorded. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement criteria as set forth in ASC 740. As of December 31, 2023, the Company had net unrecognized tax benefits of $48.1 million. The Company’s gross unrecognized tax benefits as of the years ended December 31, 2023, 2022, and 2021 and the changes in those balances are as follows:
| Years Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Unrecognized tax benefits at the beginning of period | $ | 43.9 |  |  | $ | 32.1 |  |  | $ | 37.6 |
Gross increases - current year tax positions | 0.8 |  |  | 12.9 |  |  | 1.4 |
Gross increases - prior year tax positions | 3.6 |  |  | 1.6 |  |  | 1.1 |
Gross decreases - prior year tax positions | (0.2) |  |  | (2.0) |  |  | (2.8) |
Gross decreases - settlements | — |  |  | (0.7) |  |  | (5.1) |
Gross decreases - statute lapse | — |  |  | — |  |  | (0.1) |
Unrecognized tax benefits at end of year | $ | 48.1 |  |  | $ | 43.9 |  |  | $ | 32.1 |
Interest and penalties in year-end balance | $ | 6.4 |  |  | $ | 4.1 |  |  | $ | 3.3 |
In 2022, the Company filed a U.S. federal tax return taking an uncertain tax position that was not recorded as a benefit or deferred tax asset in the financial statements but for which the $12.0 million unrecognized tax benefit has been included in the table above. Interest and penalties related to uncertain tax positions are included as a component of Income tax benefit and all other interest and penalties are included as a component of Other income (expense) in the Consolidated Statements of Operations. For the years ended December 31, 2023 and December 31, 2022, $30.2 million and $26.8 million of the unrecognized tax benefits, if recognized, would affect the effective tax rate, respectively. The Company files U.S. federal, foreign and state income tax returns in jurisdictions with various statutes of limitations. The Company is currently under audit by Switzerland for the years ended June 30, 2017 through December 31, 2021 Annual tax provisions include amounts considered necessary to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues may differ materially from the amount accrued.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration