Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Constituents of Provision for Income Taxes

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


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	29,084	$	48,355	$	27,870
State	3,544		5,689		5,372
Foreign	9,207		10,243		8,406
	41,835		64,287		41,648
Deferred:
Federal	(24,731)		(40,772)		(19,266)
State	(5,877)		(8,354)		(769)
Foreign	10,887		20,009		17,406
	(19,721)		(29,117)		(2,629)
	$	22,114	$	35,170	$	39,019

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,
	2023		2022		2021
Income tax expense at U.S. federal statutory corporate tax rate	21	%	21	%	21	%
State income taxes, net of federal benefit	1		2		1
Foreign tax rate differential	(6)		(7)		(5)
Tax credits	(3)		(1)		(2)
Taxation on multinational operations	(3)		—		—
Tax reserves	3		1		—
Limitation on deduction for executive compensation	2		1		—
Discrete tax expense related to employee stock-based compensation	1		—		(3)
Discrete tax expense related to tax return filings	2		2		(1)
Discrete tax expense related to rate revaluation on state tax assets	2		(2)		—
Discrete tax benefit related to GILTI adjustments	(2)		(3)		—


Discrete tax benefit for release of valuation allowance	(4)		(1)		—


Discrete tax benefit for audit settlements	—		(1)		—
Other	2		2		1
Income tax expense	16	%	14	%	12	%

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

The changes in gross amounts of unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands):


Balance of reserve for income taxes as of December 31, 2020	$	13,952
Reductions as a result of tax positions taken in prior periods	(280)
Additions as a result of tax positions taken in prior periods	100
Additions as a result of tax positions taken in the current period	525

Reductions 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
Reductions as a result of tax positions taken in prior periods	(119)
Additions as a result of tax positions taken in prior periods	2,850
Additions as a result of tax positions taken in the current period	505
Reductions relating to settlements with taxing authorities	(2,329)
Reductions 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
Reductions as a result of tax positions taken in prior periods	(242)
Additions as a result of tax positions taken in prior periods	12,556
Additions as a result of tax positions taken in the current period	1,877
Reductions relating to settlements with taxing authorities	(1,230)
Reductions as a result of the expiration of the applicable statutes of limitations	(894)
Balance of reserve for income taxes as of December 31, 2023	$	25,714

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, 2023 and December 31, 2022 were as follows (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Intangible asset in connection with change in tax structure	$	375,360	$	386,221
Stock-based compensation expense	20,916		21,962
Tax credit carryforwards	7,848		8,284
Inventory and revenue related	10,897		8,117
Bonuses, commissions, and other compensation	6,243		5,116
Depreciation	1,840		4,881
Foreign net operating losses	339		53
Capitalization of R&D expenses	28,521		16,889
Other	5,514		15,102
Total deferred tax assets	457,478		466,625
Valuation allowance	(943)		(7,661)
	$	456,535	$	458,964

Deferred tax liabilities:
Amortization	$	(28,685)	$	(2,762)
GILTI tax basis differences in connection with change in tax structure	(274,327)		(298,922)
	$	(303,012)	$	(301,684)

Net deferred taxes	$	153,523	$	157,280