Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income before income tax provision included the following components:

The provision for income taxes was composed of the following:

The reconciliation of the U.S. federal statutory tax rate to the consolidated effective tax rate was as follows:


	Year Ended December 31,
	2024		2023		2022
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Nondeductible expenses	3.5		2.1		2.3
State income taxes, net of federal benefit	1.5		0.6		0.9
Foreign rate differential	0.7		0.4		—

Stock-based compensation	0.3		—		(1.5)
U.S. federal tax (benefit) expense on foreign earnings	0.1		(1.2)		(2.4)
Benefit from tax planning and entity structuring activities	—		(0.3)		(2.5)

Research and development credits	(3.0)		(3.2)		(3.2)
Foreign-derived intangible income deduction	(4.2)		(4.1)		(5.7)
Other	(0.1)		0.2		0.1
	19.8	%	15.5	%	9.0	%

The components of deferred tax assets and liabilities are as follows:


	December 31,
(in thousands)	2024		2023
Deferred tax assets:
Research and experimentation capitalization	$	211,192	$	148,355
Uncertain tax positions	55,583		52,685
Net operating loss carryforwards	31,304		34,907
Stock-based compensation	29,712		33,473
Operating lease liabilities	24,967		28,380
Debt obligation basis difference	20,289		30,289
Employee benefits	12,066		13,662


Other	13,459		9,752
Valuation allowance	(16,892)		(17,608)
Total deferred tax assets	381,680		333,895
Deferred tax liabilities:
Other intangible assets	(177,270)		(202,404)
Operating lease right-of-use assets	(23,407)		(26,878)
Deferred revenue	(11,367)		(12,080)
Property and equipment	(3,034)		(3,607)
Other	—		—
Total deferred tax liabilities	(215,078)		(244,969)
Net deferred tax assets	$	166,602	$	88,926

The following is a reconciliation of the total amounts of unrecognized tax benefits:


	Year Ended December 31,
(in thousands)	2024		2023		2022
Unrecognized tax benefit as of January 1	$	54,884	$	45,772	$	39,641
Gross changes—acquisitions	—		—		—
Gross increases—tax positions in prior period	146		—		403
Gross decreases—tax positions in prior period	(267)		(1,782)		(2,780)
Gross increases—tax positions in current period	12,302		14,814		13,905
Reductions due to a lapse of the applicable statute of limitations	(2,998)		(3,236)		(3,743)
Changes due to currency fluctuation	(6,516)		(684)		(1,654)
Settlements	—		—		—
Unrecognized tax benefit as of December 31	$	57,551	$	54,884	$	45,772