Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Loss Before Income Tax Benefit
Income (loss) before income tax expense (benefit) was generated in the following jurisdictions:

  Year Ended December 31,
  2022 2021 2020
(in thousands)
Domestic $ (89,000) $ 9,730  $ (17,234)
Foreign 10,581  10,631  9,189 
Total $ (78,419) $ 20,361  $ (8,045)
Schedule of Components of the Income Tax Expense (Benefit) Charged to Operations
The components of the income tax expense (benefit) charged to operations are summarized as follows: 

  Year Ended December 31,
  2022 2021 2020
 (in thousands)
Current:
Federal $ 1,185  $ —  $ (1,086)
State 6,964  3,488  2,111 
Foreign 2,402  4,499  (4,542)
10,551  7,987  (3,517)
Deferred:      
Federal (2,453) 4,021  (2,659)
State (1,439) (3,548) 1,158 
Foreign 402  (793) (383)
(3,490) (320) (1,884)
Total $ 7,061  $ 7,667  $ (5,401)
Schedule of Net Deferred Tax Assets (Liabilities)
Net deferred tax assets (liabilities) consisted of the following:

  December 31,
  2022 2021
(in thousands)
Deferred revenue $ 8,945  $ 6,436 
Prepaid expenses and accrued expenses 8,847  8,099 
Right-of-use assets (20,388) (22,190)
Lease liabilities 31,328  28,994 
Net operating loss and tax credit carryforwards 64,590  85,698 
Property and equipment and intangible assets (94,061) (100,314)
Stock-based compensation expense 10,559  9,652 
Investment in partnerships 2,836  2,941 
Convertible Notes 20,440  — 
R&D expenditures 43,956  — 
Withholding taxes (4,841) — 
Other 196  (173)
Total deferred tax assets, net 72,407  19,143 
Less: valuation allowance (88,603) (40,164)
Net deferred tax liabilities $ (16,196) $ (21,021)
Schedule of Expected Tax Provision
The expected income tax provision (benefit) calculated at the statutory federal rate differs from the actual provision as follows:

  Year Ended December 31,
  2022 2021 2020
(in thousands)
Tax provision (benefit), at U.S. federal statutory tax rate $ (15,515) $ 4,402  $ (1,787)
State income tax provision (benefit), net of federal benefit (3,463) 856  (2,461)
Effect of stock-based compensation excess tax benefit 717  (364) (9,349)
Effect of limitation on executive compensation 2,511  1,678  961 
Effect of permanent items 869  661  (703)
Effect of India partnerships 1,644  1,422  2,977 
Change in valuation allowance 26,974  5,660  16,210 
Effect of change in state and foreign income tax rates (254) (1,184) 1,323 
Uncertain tax positions (617) 158  (6,093)
Research and development credits (10,993) (5,695) (5,939)
Change in India indefinite reinvestment assertion 4,372  —  — 
Other 816  73  (540)
Income tax provision (benefit) $ 7,061  $ 7,667  $ (5,401)
Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefit
A reconciliation of the beginning and ending amount of unrecognized tax benefit follows:

  Year Ended December 31,
  2022 2021 2020
(in thousands)
Balance at beginning of year $ 14,517  $ 15,132  $ 18,939 
Additions based on tax positions related to the current year 2,522  1,631  1,420 
Reductions based on tax positions related to prior years (296) (550) (2,793)
Reductions for settlements with taxing authorities related to prior years —  (394) (2,434)
Reductions for lapses of statute of limitations (3,131) (1,302) — 
Balance at end of year $ 13,612  $ 14,517  $ 15,132