Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule 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,
	2023		2022		2021
United States	$	(8,342)	$	(11,751)	$	69,817
Foreign	155,969		218,386		105,248
Total	$	147,627	$	206,635	$	175,065

Schedule of Expense (Benefit) for Income Taxes

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


	Years Ended December 31,
	2023		2022		2021
Federal
Current	$	(3,490)	$	7,064	$	3,994
Deferred	(6,306)		(353)		6,067
Total	(9,796)		6,711		10,061
State
Current	(2,327)		7,993		7,592
Deferred	797		(3,500)		(1,498)
Total	(1,530)		4,493		6,094
Foreign
Current	36,020		47,798		31,955
Deferred	1,424		5,456		(836)
Total	37,444		53,254		31,119
Total	$	26,118	$	64,458	$	47,274

Schedule 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,
	2023		2022		2021
Tax expense at federal rate of 21%	$	31,002	$	43,393	$	36,764
State income taxes, net of federal benefit	1,744		2,351		4,816
Change in valuation allowance	1,588		71		1,228
Foreign tax rate differential	(7,658)		(12,949)		(5,376)
Unrecognized tax benefit increase (decrease)	(5,726)		2,039		858
Tax effect of foreign operations	10,350		15,336		16,151
Tax benefit of research & development	(5,104)		(3,365)		(4,123)
Performance-based compensation	3,004		2,266		(1,887)
Tax effect of divestiture	(2,900)		14,522		—
Other	(182)		794		(1,157)
Income tax provision	$	26,118	$	64,458	$	47,274

Schedule 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,
	2023		2022
Deferred income tax assets:
Net operating loss carryforwards	$	15,409	$	16,763
Tax credits	23,197		18,497
Compensation	15,478		15,272
Deferred revenue	9,873		10,168
Operating lease	8,297		10,202
Capitalized research and development	16,903		23,891
Deferred interest	17,822		6,829
Other	951		2,704
Gross deferred income tax assets	107,930		104,326
Less: valuation allowance	(12,963)		(11,384)
Net deferred income tax assets	$	94,967	$	92,942
Deferred income tax liabilities:
Depreciation and amortization	$	(31,741)	$	(33,692)
Operating lease right-of-use asset	(7,303)		(8,885)
Unbilled revenue	(5,407)		(9,566)
Withholding tax liability	(32,752)		(27,432)
Total deferred income tax liabilities	(77,203)		(79,575)
Net deferred income taxes	$	17,764	$	13,367
Deferred income taxes / liabilities included in the balance sheet are:
Deferred income tax asset – noncurrent	$	58,499	$	53,738
Deferred income tax liability – noncurrent	(40,735)		(40,371)
Net deferred income taxes	$	17,764	$	13,367

Schedule 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):


	2023		2022		2021
Balance of unrecognized tax benefits at beginning of year	$	26,408	$	24,510	$	24,310
Increases for tax positions of prior years	1,568		2,349		1,533
Decreases for tax positions of prior years	(6,560)		(3,659)		(65)
Increases for tax positions established for the current period	3,941		9,320		2,272
Decreases for settlements with taxing authorities	(532)		(63)		(620)
Reductions resulting from lapse of applicable statute of limitation	(4,005)		(5,833)		(2,876)
Adjustment resulting from foreign currency translation	69		(216)		(44)
Balance of unrecognized tax benefits at end of year	$	20,889	$	26,408	$	24,510