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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income tax provision included the following components:
 Year Ended December 31,
(in thousands)202320222021
Domestic$458,581 $504,797 $460,395 
Foreign133,557 70,518 54,959 
Total$592,138 $575,315 $515,354 

The provision for income taxes was composed of the following:
 Year Ended December 31,
(in thousands)202320222021
Current:
Federal$115,942 $103,007 $44,805 
State11,759 11,286 6,626 
Foreign55,332 68,028 43,786 
Deferred:
Federal(79,251)(94,398)(32,449)
State(8,145)(9,647)(1,691)
Foreign(3,911)(26,671)(350)
Total$91,726 $51,605 $60,727 

The reconciliation of the U.S. federal statutory tax rate to the consolidated effective tax rate was as follows:
 Year Ended December 31,
 202320222021
Federal statutory tax rate21.0 %21.0 %21.0 %
Nondeductible expenses2.1 2.3 2.8 
State income taxes, net of federal benefit0.6 0.9 0.6 
Foreign rate differential0.4 — (0.1)
Stock-based compensation— (1.5)(5.4)
Benefit from tax planning and entity structuring activities(0.3)(2.5)(0.8)
U.S. federal tax (benefit) expense on foreign earnings(1.2)(2.4)0.4 
Research and development credits(3.2)(3.2)(3.1)
Foreign-derived intangible income deduction(4.1)(5.7)(4.0)
Other0.2 0.1 0.4 
15.5 %9.0 %11.8 %
The components of deferred tax assets and liabilities are as follows:
 December 31,
(in thousands)20232022
Deferred tax assets:
Research and experimentation capitalization$148,355 $85,677 
Uncertain tax positions52,685 41,569 
Net operating loss carryforwards34,907 39,034 
Stock-based compensation33,473 27,548 
Debt obligation basis difference30,289 28,758 
Operating lease liabilities28,380 31,726 
Employee benefits13,662 13,343 
Research and development credits5,506 5,390 
Allowance for doubtful accounts4,836 4,376 
Other— 2,638 
Valuation allowance(17,608)(17,336)
Total deferred tax assets334,485 262,723 
Deferred tax liabilities:
Other intangible assets(202,404)(192,018)
Operating lease right-of-use assets(26,878)(30,308)
Deferred revenue(12,080)(8,979)
Property and equipment(3,607)(5,029)
Other(590)— 
Total deferred tax liabilities(245,559)(236,334)
Net deferred tax assets$88,926 $26,389 
The net increase in the valuation allowance was primarily due to $0.5 million of currency fluctuations on balances relating to foreign jurisdictions, partially offset by a $0.2 million decrease in unrealizable tax assets. As of each reporting date, management considers new evidence, both positive and negative, that could affect the future realization of deferred tax assets. If management determines it is more likely than not that an asset, or a portion of an asset, will not be realized, a valuation allowance is recorded.
As of December 31, 2023, we had federal net operating loss carryforwards of $7.2 million, which are subject to limitations of their utilization. Losses totaling $6.5 million are not currently subject to expiration dates, while the remaining $0.7 million of losses expire between 2028 - 2037. Deferred tax assets of $2.3 million have been recorded for state operating loss carryforwards. These losses expire between 2031 - 2042, and are subject to limitations on their utilization. We had total foreign net operating loss carryforwards of $128.3 million, of which $88.7 million are not currently subject to expiration dates. The remainder, $39.6 million, expires between 2025 - 2038. We had tax credit carryforwards of $7.5 million, of which $0.5 million are not currently subject to expiration dates and $7.0 million expire in various years between 2025 - 2043. Of these tax credit carryforwards, $0.9 million are subject to limitations on their utilization.
In general, it is our intention to permanently reinvest all earnings in excess of previously taxed amounts. Substantially all of the pre-2018 earnings of our non-U.S. subsidiaries were taxed through the transition tax and post-2018 current earnings are taxed as part of global intangible low-taxed income tax expense. These taxes increase our previously taxed earnings and allow for the repatriation of the majority of our foreign earnings without any residual U.S. federal tax. Unrecognized provisions for taxes on indefinitely reinvested undistributed earnings of foreign subsidiaries would not be significant.
The following is a reconciliation of the total amounts of unrecognized tax benefits:
 Year Ended December 31,
(in thousands)202320222021
Unrecognized tax benefit as of January 1$45,772 $39,641 $24,075 
Gross changes—acquisitions— — — 
Gross increases—tax positions in prior period— 403 10,183 
Gross decreases—tax positions in prior period(1,782)(2,780)(2,281)
Gross increases—tax positions in current period14,814 13,905 13,223 
Reductions due to a lapse of the applicable statute of limitations(3,236)(3,743)(3,226)
Changes due to currency fluctuation(684)(1,654)(912)
Settlements— — (1,421)
Unrecognized tax benefit as of December 31$54,884 $45,772 $39,641 

We believe that it is reasonably possible that $3.2 million of uncertain tax positions included in the table above may be resolved within the next twelve months as a result of settlement with a taxing authority or a lapse of the statute of limitations. If the unrecognized tax benefit as of December 31, 2023 were to be recognized, a benefit of $13.5 million would impact the effective tax rate.
We recognize interest and penalties related to income taxes as income tax expense. We recorded penalty expense of $0.7 million, $0.7 million and $1.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. We recorded interest income of $0.3 million for the year ended December 31, 2023, interest expense of $0.1 million for the year ended December 31, 2022 and interest income of $0.2 million for the year ended December 31, 2021. As of December 31, 2023, we accrued a liability for penalties of $8.7 million and interest of $2.6 million. As of December 31, 2022, we accrued a liability for penalties of $7.9 million and interest of $3.0 million.
We are subject to taxation in the United States and various states and foreign jurisdictions. In the United States, our only major tax jurisdiction, the 2017 - 2023 tax years are open to examination by the Internal Revenue Service.