Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Components of Income (loss) Before Income Taxes

For financial reporting purposes, income (loss) before income taxes includes the following components (in thousands):


	Years Ended December 31,
	2022		2021		2020
United States	$	(11,751)	$	69,817	$	19,405
Foreign	218,386		105,248		79,221
Total	$	206,635	$	175,065	$	98,626

Summary of Income Tax Expense (Benefit)

The expense (benefit) for income taxes consists of the following (in thousands):


	Years Ended December 31,
	2022		2021		2020
Federal
Current	$	7,064	$	3,994	$	(2,683)
Deferred	(353)		6,067		(3,477)
Total	6,711		10,061		(6,160)
State
Current	7,993		7,592		2,514
Deferred	(3,500)		(1,498)		(1,758)
Total	4,493		6,094		756
Foreign
Current	47,798		31,955		22,786
Deferred	5,456		(836)		8,584
Total	53,254		31,119		31,370
Total	$	64,458	$	47,274	$	25,966

Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations

Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands):


	Years Ended December 31,
	2022		2021		2020
Tax expense at federal rate of 21%	$	43,393	$	36,764	$	20,711
State income taxes, net of federal benefit	2,351		4,816		321
Change in valuation allowance	71		1,228		2,459
Foreign tax rate differential	(12,949)		(5,376)		(1,809)
Unrecognized tax benefit increase (decrease)	2,039		858		(4,405)
Tax effect of foreign operations	15,336		16,151		11,373
Tax benefit of research & development	(3,365)		(4,123)		(2,173)
Performance-based compensation	2,266		(1,887)		(2,624)
Tax effect of divestiture	14,522		—		—
Other	794		(1,157)		2,113
Income tax provision	$	64,458	$	47,274	$	25,966

Summary of Deferred Tax Assets and Liabilities

The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands):


	December 31,
	2022		2021
Deferred income tax assets:
Net operating loss carryforwards	$	16,763	$	18,826
Tax credits	18,497		37,672
Compensation	15,272		17,133
Deferred revenue	10,168		16,333
Operating lease	10,202		10,236
Capitalized research and development	23,891		—
Other	9,533		9,988
Gross deferred income tax assets	104,326		110,188
Less: valuation allowance	(11,384)		(11,324)
Net deferred income tax assets	$	92,942	$	98,864
Deferred income tax liabilities:
Depreciation and amortization	$	(33,692)	$	(41,465)
Operating lease right-of-use asset	(8,885)		(8,791)
Unbilled revenue	(9,566)		(15,596)
Withholding tax liability	(27,432)		(18,356)
Total deferred income tax liabilities	(79,575)		(84,208)
Net deferred income taxes	$	13,367	$	14,656
Deferred income taxes / liabilities included in the balance sheet are:
Deferred income tax asset – noncurrent	$	53,738	$	50,778
Deferred income tax liability – noncurrent	(40,371)		(36,122)
Net deferred income taxes	$	13,367	$	14,656

Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands):


	2022		2021		2020
Balance of unrecognized tax benefits at beginning of year	$	24,510	$	24,310	$	29,000
Increases for tax positions of prior years	2,349		1,533		4,219
Decreases for tax positions of prior years	(3,659)		(65)		—
Increases for tax positions established for the current period	9,320		2,272		3,912
Decreases for settlements with taxing authorities	(63)		(620)		(285)
Reductions resulting from lapse of applicable statute of limitation	(5,833)		(2,876)		(12,630)
Adjustment resulting from foreign currency translation	(216)		(44)		94
Balance of unrecognized tax benefits at end of year	$	26,408	$	24,510	$	24,310