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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of (Benefit) Provision for Income Taxes from Continuing Operations

The Company’s (benefit) provision for income taxes from continuing operations consists of the following:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2023

 

 

2022 (1)

 

 

2021 (1)

 

Current income tax (benefit) provision:

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

(981

)

 

$

11,169

 

 

$

2,251

 

U.S. state

 

 

722

 

 

 

4,401

 

 

 

797

 

Rest of world

 

 

 

 

 

 

 

 

3

 

Deferred income tax (benefit) provision:

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

10,192

 

 

 

(10,536

)

 

 

9,372

 

U.S. state

 

 

(507

)

 

 

(3,010

)

 

 

(1,097

)

Ireland

 

 

(107,064

)

 

 

 

 

 

 

Total tax (benefit) provision

 

$

(97,638

)

 

$

2,024

 

 

$

11,326

 

 

(1)
Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
Schedule of Income (Loss) Before (Benefit) Provision for Income Taxes by Geographical Area

The distribution of the Company’s income (loss) before the (benefit) provision for income taxes by geographical area consists of the following:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2023

 

 

2022 (1)

 

 

2021 (1)

 

Ireland

 

$

411,767

 

 

$

(32,198

)

 

$

85,415

 

U.S.

 

 

9,752

 

 

 

1,070

 

 

 

2,312

 

Income (loss) from continuing operations before (benefit) provision for income taxes

 

$

421,519

 

 

$

(31,128

)

 

$

87,727

 

 

(1)
Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
Schedule of Components of Net Deferred Tax Assets

The components of the Company’s net deferred tax assets consist of the following:

 

 

 

December 31,

 

 

December 31,

 

(In thousands)

 

2023

 

 

2022 (1)

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

195,658

 

 

$

238,128

 

Research and development expenses

 

 

49,206

 

 

 

66,464

 

Accrued expenses and reserves

 

 

56,083

 

 

 

51,362

 

Share-based compensation

 

 

37,727

 

 

 

39,333

 

Tax credits

 

 

27,116

 

 

 

22,932

 

Other

 

 

5,582

 

 

 

6,543

 

Less: valuation allowance

 

 

(129,296

)

 

 

(268,067

)

Total deferred tax assets

 

 

242,076

 

 

 

156,695

 

Deferred tax liabilities:

 

 

 

 

 

 

Property, plant and equipment

 

 

(44,019

)

 

 

(41,169

)

Other

 

 

(2,716

)

 

 

(1,502

)

Total deferred tax liabilities

 

 

(46,735

)

 

 

(42,671

)

Net deferred tax assets

 

$

195,341

 

 

$

114,024

 

 

(1)
Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
Schedule of Activity in Valuation Allowance Associated with Deferred taxes

The activity in the valuation allowance associated with deferred taxes consists of the following:

 

(In thousands)

 

Balance at Beginning of Period (1)

 

 

(Additions) / Reductions (2)

 

 

Balance at End of Period (1)

 

Deferred tax asset valuation allowance for the year ended December 31, 2021

 

$

(253,649

)

 

$

4,537

 

 

$

(249,112

)

Deferred tax asset valuation allowance for the year ended December 31, 2022

 

$

(249,112

)

 

$

(22,405

)

 

$

(271,517

)

Deferred tax asset valuation allowance for the year ended December 31, 2023

 

$

(271,517

)

 

$

142,221

 

 

$

(129,296

)

 

(1)
Inclusive of continuing and discontinued operations for all periods other than the balance at December 31, 2023.
(2)
(Additions) reductions represent continuing and discontinued operations. The reduction during the year ended December 31, 2023 primarily relates to the partial release of the valuation allowance maintained against certain Irish net deferred tax assets. The (additions) reductions in 2022 and 2021 relate primarily to Irish net operating losses (“NOLs”).
Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate

A reconciliation of the Company’s statutory tax rate to its effective tax rate is as follows:

 

 

 

Year Ended December 31,

 

 

(In thousands, except percentage amounts)

 

2023

 

 

 

2022 (1)

 

 

 

2021 (1)

 

 

Statutory tax rate

 

 

12.5

 

%

 

 

12.5

 

%

 

 

12.5

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes at statutory rate

 

$

52,690

 

 

 

$

(3,891

)

 

 

$

10,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

4,177

 

 

 

 

4,347

 

 

 

 

7,716

 

 

Foreign rate differential(2)

 

 

4,701

 

 

 

 

521

 

 

 

 

5,159

 

 

Change in valuation allowance

 

 

(142,424

)

 

 

 

1,102

 

 

 

 

(23,024

)

 

Intercompany amounts(3)

 

 

(16,551

)

 

 

 

(1,694

)

 

 

 

10,707

 

 

Irish rate differential(4)

 

 

235

 

 

 

 

4,926

 

 

 

 

1,817

 

 

Uncertain tax positions

 

 

(234

)

 

 

 

602

 

 

 

 

704

 

 

Non-deductible lobbying expenses

 

 

705

 

 

 

 

775

 

 

 

 

637

 

 

U.S. state income taxes, net of U.S. federal benefit

 

 

347

 

 

 

 

1,272

 

 

 

 

(260

)

 

In-process R&D(5)

 

 

 

 

 

 

 

 

 

 

2,724

 

 

Foreign derived intangible income

 

 

 

 

 

 

(4,530

)

 

 

 

(3,125

)

 

R&D credit

 

 

(2,823

)

 

 

 

(2,531

)

 

 

 

(2,871

)

 

Other permanent items(6)

 

 

1,539

 

 

 

 

1,125

 

 

 

 

176

 

 

Income tax (benefit) provision

 

$

(97,638

)

 

 

$

2,024

 

 

 

$

11,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

(23.2

)

%

 

 

(6.5

)

%

 

 

12.9

 

%

 

(1)
Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
(2)
Represents income or losses of U.S. subsidiaries, subject to tax at a rate other than the Irish statutory rate.
(3)
Intercompany amounts include cross-territory eliminations, the pre-tax effect of which has been eliminated in arriving at the Company's consolidated income (loss) before taxes from continuing operations. In 2023, this included a tax benefit of $15.7 million related to the intercompany transfer of inventory that was owned by the Company at December 31, 2023.
(4)
Represents income or losses of Irish companies subject to tax at a rate other than the Irish statutory rate.
(5)
Represents the tax effect of the research and development expense recorded in connection with the acquisition of Rodin.
(6)
Other permanent items include, but are not limited to, non-deductible meals and entertainment expenses and non-deductible compensation of senior officers of the Company.
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

 

 

Unrecognized

 

(In thousands)

Tax Benefits

 

Balance, December 31, 2020

 

$

7,668

 

Reductions based on tax positions related to prior periods

 

 

(27

)

Additions based on tax positions related to the current period

 

 

731

 

Balance, December 31, 2021

 

$

8,372

 

Reductions based on the lapse of applicable statutes of limitations

 

 

(438

)

Additions based on tax positions related to prior periods

 

 

449

 

Additions based on tax positions related to the current period

 

 

590

 

Balance, December 31, 2022

 

$

8,973

 

Reductions based on the lapse of applicable statutes of limitations

 

 

(1,073

)

Additions based on tax positions related to the prior period

 

 

281

 

Additions based on tax positions related to the current period

 

 

558

 

Balance, December 31, 2023

 

$

8,739