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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income tax (Benefit) Expense
The components of our income taxes are as follows:
Year Ended December 31,
(in thousands)202320222021
Current
Federal$16,588 $6,974 $(361)
State2,270 3,120 2,532 
Total current income tax expense18,858 10,094 2,171 
Deferred
Federal(41,856)(421)6,521 
State(23,706)(76)6,385 
Total deferred income tax (benefit) expense(65,562)(497)12,906 
Total income tax (benefit) expense$(46,704)$9,597 $15,077 
Schedule of Reconciliation of Income Tax (Benefit) Expense
The following is a reconciliation of the U.S. federal statutory rate of 21.0% to our effective income tax rate:
Year Ended December 31,
(dollars in thousands)202320222021
Income taxes computed at federal statutory rate$(11,670)$(4,879)$(2,137)
State income taxes (1)
(16,934)2,465 8,385 
Stock-based compensation217 383 491 
Excess tax (benefits) related to stock-based compensation6,131 4,565 (43,797)
Research and development credits, net of reserves526 (6,401)(8,206)
Nondeductible officers' compensation10,641 12,295 21,905 
(Decrease) increase in valuation allowance(36,323)68 37,782 
Transaction costs1 39 438 
Basis difference on disposition— 659 — 
Nondeductible penalties2 318 16 
Other705 85 200 
Income tax (benefit) expense$(46,704)$9,597 $15,077 
Effective income tax rate84.0 %(41.3 %)(148.1 %)
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(1)Includes the state tax effects for (i) excess tax (benefits) related to stock-based compensation of $1.0 million, $0.8 million and ($6.4) million for 2023, 2022 and 2021, respectively, and (ii) a valuation allowance (decrease) increase of ($13.0) million, $4.4 million and $14.6 million for 2023 and 2022, and 2021 respectively.
Schedule of Components of Net Deferred Taxes
Deferred taxes, net consist of the following:
December 31,
(in thousands)20232022
Deferred tax assets
Other assets$4,602 $2,703 
Operating lease liabilities13,279 14,402 
Stock-based compensation10,804 12,542 
Research and development credits, net of reserves11,918 14,382 
Tax credit carryforward827 769 
Charitable contribution carryforward4,510 6,810 
Goodwill7,491 10,705 
Capitalized research and development expenditures14,935 9,269 
Intangible assets4,971 — 
Accrued legal settlement3,160 — 
Net operating losses10,458 8,737 
Total deferred tax assets86,955 80,319 
Valuation allowance(7,818)(57,115)
Deferred tax assets, net of valuation allowance79,137 23,204 
Deferred tax liabilities
Other liabilities(404)(1,143)
Operating lease right-of-use assets, net(7,265)(8,815)
Property and equipment(3,064)(4,383)
Intangible assets— (9,157)
Insurance recovery receivable(3,136)— 
Total deferred tax liabilities(13,869)(23,498)
Total deferred tax assets (liabilities), net$65,268 $(294)
Schedule of Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
(in thousands)
Gross unrecognized tax benefits at December 31, 2020$7,391 
Increases related to prior year tax positions999 
Increases related to current year tax positions6,911 
Lapse of statute of limitations(505)
Gross unrecognized tax benefits at December 31, 202114,796 
Increases related to prior year tax positions422 
Increases related to current year tax positions2,444 
Decreases related to prior year tax positions(1,160)
Lapse of statute of limitations(1,804)
Gross unrecognized tax benefits at December 31, 202214,698 
Increases related to prior year tax positions409 
Increases related to current year tax positions746 
Decreases related to prior year tax positions(1,080)
Lapse of statute of limitations(576)
Gross unrecognized tax benefits at December 31, 2023$14,197