Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes

Schedule of provision for income taxes relating to continuing operations

Our provision (benefit) for income taxes relating to continuing operations consists of the following (in thousands):

	December 31,
	2022		2021		2020
Current tax provision—
Federal	$	58,040	$	31,283	$	36,556
State		26,376		8,741		12,798
Total current		84,416		40,024		49,354
Deferred tax provision (benefit)—
Federal		(80,130)		6,197		(5,483)
State		(14,375)		705		(2,470)
Total deferred		(94,505)		6,902		(7,953)
Provision (benefit) for income taxes	$	(10,089)	$	46,926	$	41,401

Schedule of difference in income taxes provided for and the amounts determined by applying the federal statutory tax rate to income before income taxes results

The provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 resulted in effective tax rates on continuing operations of (4.3%), 24.7% and 21.6%, respectively. The reasons for the differences between these effective tax rates and the federal statutory rates are as follows (in thousands, except percentages):

	December 31,
	2022			2021			2020
Federal statutory rate of—		21	%		21	%		21	%
Income taxes at the federal statutory rate	$	49,530		$	39,958		$	40,223
Increases (decreases) resulting from—
Net state income taxes		9,376			7,340			8,406
Valuation allowances		(95)			(39)			(254)
Net unrecognized tax benefits		(17,922)			640			18,557
Nondeductible expenses		4,045			2,381			2,470
R&D tax credit		(51,398)			—			(26,133)
179D deduction		(964)			(1,207)			(1,062)
Stock-based compensation deductions		(872)			(2,210)			(426)
Other		(1,789)			63			(380)
Provision (benefit) for income taxes	$	(10,089)		$	46,926		$	41,401

Schedule of significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the Consolidated Balance Sheets

Significant components of the deferred tax assets and deferred tax liabilities as reflected on the Consolidated Balance Sheets are as follows (in thousands):

	Year Ended
	December 31,
	2022		2021
Deferred tax assets—
Accounts receivable and allowance for credit losses	$	2,530	$	1,878
Stock-based compensation		3,809		3,392
Accrued liabilities and expenses		34,179		36,255
Lease liabilities		32,048		27,944
Net operating loss carryforwards		5,361		10,379
Intangible assets		9,204		3,851
Research and experimental expenditures		106,002		—
Other		539		758
Subtotal		193,672		84,457
Valuation allowances		(379)		(475)
Total deferred tax assets		193,293		83,982
Deferred tax liabilities—
Property and equipment		(18,882)		(15,534)
Lease right-of-use asset		(32,025)		(27,905)
Long-term contracts		(1,870)		(964)
Goodwill		(23,288)		(17,321)
Other		(1,563)		(1,098)
Total deferred tax liabilities		(77,628)		(62,822)
Net deferred tax assets	$	115,665	$	21,160

Schedule of deferred income tax assets and liabilities included in the consolidated balance sheets

The deferred tax assets and deferred tax liabilities reflected above are included in the Consolidated Balance Sheets as follows (in thousands):

	December 31,
	2022		2021
Deferred tax assets	$	115,665	$	22,905
Deferred tax liabilities	$	—	$	1,745

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):

	Year Ended
	December 31,
	2022		2021		2020
Balance at beginning of year	$	29,452	$	28,756	$	10,199
Additions based on tax positions related to current year		3,420		207		—
Additions based on tax positions related to prior years		7,427		489		26,858
Reductions for tax positions related to prior years		(13)		—		—
Reductions for settlements with taxing authorities		(28,756)		—		(8,301)
Balance at end of year	$	11,530	$	29,452	$	28,756