Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Constituents of Provision for Income Taxes

Income tax expense consisted of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	48,355	$	27,870	$	160
State	5,689		5,372		921
Foreign	10,243		8,406		13,197
	64,287		41,648		14,278
Deferred:
Federal	(40,772)		(19,266)		(18,266)
State	(8,354)		(769)		(556)
Foreign	20,009		17,406		15,269
	(29,117)		(2,629)		(3,553)
	$	35,170	$	39,019	$	10,725

Reconciliation of the United States Federal Statutory Corporate Tax Rate to the Company's Effective Tax Rate or Income Tax Provision

A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows:


	Year Ended December 31,
	2022		2021		2020
Income tax expense at U.S. federal statutory corporate tax rate	21	%	21	%	21	%
State income taxes, net of federal benefit	2		1		1
Foreign tax rate differential	(7)		(5)		(6)
Tax credit	(1)		(2)		(1)
Discrete tax benefit related to employee stock options	—		(3)		(7)
Discrete tax expense related to tax return filings	2		(1)		(5)
Discrete tax benefit related to a rate revaluation on state tax assets	(2)		—		—
Discrete tax benefit related to GILTI adjustments	(3)		—		—
Discrete tax expense related to international tax reserves	1		—		1
Discrete tax benefit for audit settlements	(1)		—		—
Discrete tax benefit for release of valuation allowance	(1)		—		—

Limitation on executive compensation	1		—		1
Other	2		1		1
Income tax expense	14	%	12	%	6	%

Changes in the Reserve for Income Taxes, Excluding Interest and Penalties

The changes in the reserve for income taxes, excluding gross interest and penalties, were as follows (in thousands):


Balance of reserve for income taxes as of December 31, 2020	$	13,952
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in prior periods	(280)
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods	100
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period	525

Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations	(485)
Balance of reserve for income taxes as of December 31, 2021	13,812
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in prior periods	(119)
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods	2,850
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period	505
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities	(2,329)
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations	(1,072)
Balance of reserve for income taxes as of December 31, 2022	$	13,647

Constituents of Deferred Tax Assets

The tax effects of temporary differences and attributes that give rise to deferred income tax assets and liabilities as of December 31, 2022 and December 31, 2021 were as follows (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Intangible asset in connection with change in tax structure	386,221		$	404,526
Stock-based compensation expense	21,962		15,279
Federal and state tax credit carryforwards	8,284		11,051
Inventory and revenue related	8,117		7,426
Bonuses, commissions, and other compensation	5,116		7,263
Depreciation	2,119		5,395
Foreign net operating losses	53		751
Capitalization of R&D expenses	16,889		—
Other	15,102		9,023
Total deferred tax assets	463,863		460,714
Valuation allowance	(7,661)		(8,188)
	$	456,202	$	452,526

Deferred tax liabilities:
GILTI tax basis differences in connection with change in tax structure	$	(298,922)	$	(327,725)




Net deferred taxes	$	157,280	$	124,801