Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023		2022
Current tax provision (benefit)—
Federal	$	170,844	$	(34,722)	$	58,040
State		39,897		4,222		26,376
Total current		210,741		(30,500)		84,416
Deferred tax provision (benefit)—
Federal		(54,119)		81,119		(80,130)
State		(12,494)		14,177		(14,375)
Total deferred		(66,613)		95,296		(94,505)
Provision (benefit) for income taxes	$	144,128	$	64,796	$	(10,089)

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, 2024, 2023 and 2022 resulted in effective tax rates on continuing operations of 21.6%, 16.7% and (4.3%), 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,
	2024			2023			2022
Federal statutory rate of—		21	%		21	%		21	%
Income taxes at the federal statutory rate	$	139,978		$	81,521		$	49,530
Increases (decreases) resulting from—
Net state income taxes		25,748			14,278			9,376
Net unrecognized tax benefits		9,549			9,049			(17,922)
Nondeductible expenses		9,921			5,774			4,045
R&D tax credit		(36,216)			(43,791)			(51,398)
Other		(4,852)			(2,035)			(3,720)
Provision (benefit) for income taxes	$	144,128		$	64,796		$	(10,089)

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,
	2024		2023
Deferred tax assets—
Accounts receivable and allowance for credit losses	$	4,139	$	3,203
Stock-based compensation		5,329		4,549
Accrued liabilities and expenses		63,519		44,209
Lease liabilities		57,673		51,065
Net operating loss and tax credit carryforwards		2,963		5,919
Goodwill		24,592		—
Intangible assets		21,075		8,570
Research and experimental expenditures		—		195,444
Other		1,685		1,192
Subtotal		180,975		314,151
Valuation allowances		(2,751)		(156)
Total deferred tax assets		178,224		313,995
Deferred tax liabilities—
Property and equipment		(29,970)		(27,049)
Lease right-of-use asset		(57,673)		(51,058)
Long-term contracts		(2,429)		(193,144)
Goodwill		—		(24,452)
Other		(4,936)		(1,689)
Total deferred tax liabilities		(95,008)		(297,392)
Net deferred tax assets	$	83,216	$	16,603

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,
	2024		2023
Deferred tax assets	$	85,441	$	17,723
Deferred tax liabilities	$	2,225	$	1,120

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,
	2024		2023		2022
Balance at beginning of year	$	20,579	$	11,530	$	29,452
Additions based on tax positions related to current year		7,591		6,370		3,420
Additions based on tax positions related to prior years		1,958		2,723		7,427
Reductions for tax positions related to prior years		—		(44)		(13)
Reductions for settlements with taxing authorities		—		—		(28,756)
Balance at end of year	$	30,128	$	20,579	$	11,530