Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
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,
  2023 2022 2021
(in thousands)
Domestic $ (240,904) $ (89,000) $ 9,730 
Foreign 7,907  10,581  10,631 
Total $ (232,997) $ (78,419) $ 20,361 
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,
  2023 2022 2021
 (in thousands)
Current:
Federal $ 8,774  $ 1,185  $ — 
State 4,894  6,964  3,488 
Foreign 588  2,402  4,499 
14,256  10,551  7,987 
Deferred:      
Federal 2,138  (2,453) 4,021 
State (4,399) (1,439) (3,548)
Foreign 782  402  (793)
(1,479) (3,490) (320)
Total $ 12,777  $ 7,061  $ 7,667 
Schedule of Net Deferred Tax Assets (Liabilities)
Deferred tax assets (liabilities), net consisted of the following:

  December 31,
  2023 2022
(in thousands)
Deferred revenue $ 8,699  $ 8,945 
Prepaid expenses and accrued expenses 6,663  8,847 
Right-of-use assets (17,528) (20,388)
Lease liabilities 29,497  31,328 
Net operating loss and tax credit carryforwards 63,866  64,590 
Property and equipment and intangible assets (84,139) (94,061)
Stock-based compensation expense 9,215  10,559 
Investment in partnerships (4,416) 2,836 
Convertible Notes 16,754  20,440 
R&D expenditures 68,543  43,956 
Withholding taxes (5,035) (4,841)
Other (865) 196 
Total deferred tax assets, net 91,254  72,407 
Less: valuation allowance (107,822) (88,603)
Deferred tax liabilities, net $ (16,568) $ (16,196)
Schedule of Expected Tax Provision
The expected income tax provision calculated at the statutory federal rate differs from the actual provision as follows:

  Year Ended December 31,
  2023 2022 2021
(in thousands)
Tax provision (benefit), at U.S. federal statutory tax rate $ (47,449) $ (15,515) $ 4,402 
State income tax provision (benefit), net of federal benefit (440) (3,463) 856 
Effect of stock-based compensation tax shortfall 3,394  717  (364)
Effect of limitation on executive compensation 1,057  2,511  1,678 
Effect of permanent items 447  869  661 
Effect of India partnerships 1,366  1,644  1,422 
Change in valuation allowance 19,219  26,974  5,660 
Effect of change in state and foreign income tax rates 97  (254) (1,184)
Uncertain tax positions 1,211  (617) 158 
Research and development credits (11,189) (10,993) (5,695)
Effect of goodwill impairment 40,282  —  — 
Change in India indefinite reinvestment assertion 3,699  4,372  — 
Other 1,083  816  73 
Income tax provision
 $ 12,777  $ 7,061  $ 7,667 
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,
  2023 2022 2021
(in thousands)
Balance at beginning of year $ 13,612  $ 14,517  $ 15,132 
Additions based on tax positions related to the current year 2,456  2,522  1,631 
Additions (reductions) based on tax positions related to prior years 58  (296) (550)
Reductions for settlements with taxing authorities related to prior years —  —  (394)
Reductions for lapses of statute of limitations (839) (3,131) (1,302)
Balance at end of year $ 15,287  $ 13,612  $ 14,517