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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Summary of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, 2023, 2022 and 2021 are as follows:
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,545 |  |  | $ | 4,572 |  |  | $ | 11 |
State |  |  | 26 |  |  |  | 88 |  |  |  | (63 | )
International |  |  | 10,004 |  |  |  | (4,347 | ) |  |  | 4,166 |
Total Current |  |  | 12,575 |  |  |  | 313 |  |  |  | 4,114 |
Deferred |  |  |  |  |  |  |  |  |
Federal |  |  | 46,252 |  |  |  | (47,429 | ) |  |  | — |
State |  |  | 6,607 |  |  |  | (6,776 | ) |  |  | — |
International |  |  | (37,301 | ) |  |  | (8,183 | ) |  |  | (1,784 | )
Total Deferred |  |  | 15,558 |  |  |  | (62,388 | ) |  |  | (1,784 | )
Total Income Tax Expense (Benefit) |  | $ | 28,133 |  |  | $ | (62,075 | ) |  | $ | 2,330 |
Effective Income Tax Rate Differs from Federal Statutory Rate | The effective income tax rate differs from the federal statutory rate due to the following:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Tax provision computed at the federal statutory rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | %
State income tax provision, net of federal benefit |  |  | 1.34 |  |  |  | 2.60 |  |  |  | 13.33 |
Federal research credits |  |  | 3.26 |  |  |  | 6.74 |  |  |  | 53.77 |
Foreign taxes |  |  | 3.52 |  |  |  | 6.29 |  |  |  | (4.69 | )
Tax-exempt income |  |  | 0.06 |  |  |  | 0.21 |  |  |  | 3.75 |
Change in valuation allowance |  |  | (35.19 | ) |  |  | 63.92 |  |  |  | (75.26 | )
Non-deductible transaction costs |  |  | — |  |  |  | (2.74 | ) |  |  | (39.48 | )
Foreign tax credits |  |  | 2.45 |  |  |  | (0.40 | ) |  |  | 0.14 |
Stock-based compensation |  |  | (0.57 | ) |  |  | (2.09 | ) |  |  | 10.74 |
Withholding taxes |  |  | 0.01 |  |  |  | 0.03 |  |  |  | 0.14 |
Alabama law change |  |  | — |  |  |  | — |  |  |  | (25.39 | )
Adtran Networks tax exempt income |  |  | 1.42 |  |  |  | — |  |  |  | — |
Return to accrual |  |  | 0.62 |  |  |  | 0.24 |  |  |  | 9.48 |
Global intangible low-taxed income ("GILTI") |  |  | (5.87 | ) |  |  | (8.08 | ) |  |  | (4.29 | )
Adtran Networks Goodwill Impairment |  |  | (4.62 | ) |  |  | — |  |  |  | — |
Other, net |  |  | 0.40 |  |  |  | (0.24 | ) |  |  | (0.19 | )
Effective Tax Rate |  |  | (12.17 | )% |  |  | 87.48 | % |  |  | (36.95 | )%
Loss Before Expense (Benefit) for Income Taxes | Loss before expense (benefit) for income taxes for the years ended December 31, 2023, 2022 and 2021 is as follows:
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
U.S. entities |  | $ | (113,951 | ) |  | $ | (33,720 | ) |  | $ | (14,982 | )
International entities |  |  | (117,259 | ) |  |  | (37,243 | ) |  |  | 8,677 |
Total |  | $ | (231,210 | ) |  | $ | (70,963 | ) |  | $ | (6,305 | )
Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Liabilities) | Deferred income taxes on t he Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2023 and 2022 consist of the following:
(In thousands) |  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Inventory |  | $ | 19,623 |  |  | $ | 5,818 |
Accrued expenses |  |  | 3,533 |  |  |  | 7,865 |
Deferred compensation |  |  | 6,284 |  |  |  | 5,792 |
Stock-based compensation |  |  | 2,023 |  |  |  | 1,373 |
Uncertain tax positions related to state taxes and related interest |  |  | 105 |  |  |  | 102 |
Pensions |  |  | 8,607 |  |  |  | 5,952 |
Foreign losses |  |  | 2,705 |  |  |  | 4,744 |
State losses and credit carry-forwards |  |  | 4,259 |  |  |  | 3,516 |
Federal loss and research carry-forwards |  |  | 78,450 |  |  |  | 64,995 |
Lease liabilities |  |  | 7,701 |  |  |  | 4,093 |
Capitalized research and development expenditures |  |  | 48,192 |  |  |  | 31,248 |
Investments |  |  | — |  |  |  | 160 |
Valuation allowance |  |  | (86,567 | ) |  |  | (5,201 | )
Total Deferred Tax Assets |  |  | 94,915 |  |  |  | 130,457 |
Deferred tax liabilities: |  |  |  |  |  |
Property, plant and equipment |  |  | (9,093 | ) |  |  | (8,982 | )
Intellectual property |  |  | (86,572 | ) |  |  | (108,671 | )
Right of use lease assets |  |  | (8,424 | ) |  |  | (6,594 | )
Investments |  |  | (694 | ) |  |  | — |
Total Deferred Tax Liabilities |  |  | (104,783 | ) |  |  | (124,247 | )
Net Deferred Tax (Liabilities) Assets |  | $ | (9,868 | ) |  | $ | 6,210 |
Supplemental balance sheet information related to deferred tax assets (liabilities) as of December 31, 2023 and 2022 were as follows:
|  | December 31, 2023 |
(In thousands) |  | Deferred Tax Assets (Liabilities) |  |  | Valuation Allowance |  |  | Deferred Tax Assets (Liabilities), net |
Domestic |  | $ | 101,120 |  |  | $ | (84,767 | ) |  | $ | 16,353 |
International |  |  | (24,421 | ) |  |  | (1,800 | ) |  |  | (26,221 | )
Total |  | $ | 76,699 |  |  | $ | (86,567 | ) |  | $ | (9,868 | )
|  | December 31, 2022 |
(In thousands) |  | Deferred Tax Assets |  |  | Valuation Allowance |  |  | Deferred Tax Assets, net |
Domestic |  | $ | 61,726 |  |  | $ | (3,177 | ) |  | $ | 58,549 |
International |  |  | (50,315 | ) |  |  | (2,024 | ) |  |  | (52,339 | )
Total |  | $ | 11,411 |  |  | $ | (5,201 | ) |  | $ | 6,210 |
Change in Unrecognized Income Tax Benefits | The change in the unrecognized income tax benefits for the years ended December 31, 2023, 2022 and 2021 were as follows:
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Balance at beginning of period |  | $ | 17,885 |  |  | $ | 17,836 |  |  | $ | 1,078 |
Increases for tax position related to: |  |  |  |  |  |  |  |  |
Prior years |  |  | — |  |  |  | — |  |  |  | 17,025 |
Current year |  |  | 129 |  |  |  | 123 |  |  |  | 136 |
Decreases for tax positions related to: |  |  |  |  |  |  |  |  |
Prior years |  |  | (17,025 | ) |  |  | (13 | ) |  |  | (27 | )
Expiration of applicable statute of limitations |  |  | — |  |  |  | (61 | ) |  |  | (376 | )
Balance at end of period |  | $ | 989 |  |  | $ | 17,885 |  |  | $ | 17,836 |

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