Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of summary of the income tax expense (benefit)

The summary of the income tax expense for the years ended December 31, 2023, 2022, and 2021 is as follows (dollars in thousands):

	Years Ended December 31,
	2023		2022		2021
Current
Federal	$	20,772	$	17,515	$	16,606
State	6,395		8,846		8,196
Deferred
Federal	(21,351)		(6,802)		(1,651)
State	(4,363)		(19,527)		(3,400)
Total income tax expense	$	1,453	$	32	$	19,751

Schedule of reconciliation of income tax expense

A reconciliation of income tax expense at the U.S. federal statutory income tax rate to annual income tax expense at the Company's effective tax rate is as follows (dollars in thousands):

	Years Ended December 31,
	2023		2022		2021
Income tax expense computed at U.S. federal statutory income tax rate	$	581	$	12,756	$	15,367
State income taxes	(330)		(3,198)		3,088
Permanent items	3,028		399		1,465
Research and development credits	(1,117)		237		(1,016)
Uncertain income tax position	(2,529)		(1,992)		(314)
Change in valuation allowance	1,267		(8,626)		250
Other	553		456		911
Income tax expense	$	1,453	$	32	$	19,751

Schedule of significant components of deferred tax assets (liabilities)

The significant components of the Company's deferred income tax assets (liabilities) are as follows (dollars in thousands):

	As of December 31,
	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	101,325	$	112,516
Accrued product returns and rebates	22,150		23,300
Accrued compensation and stock based compensation	15,613		15,422
Capitalized research and development	29,953		13,926
Operating lease liability	10,374		10,821
Other	12,755		18,486
Total deferred tax assets	192,170		194,471
Less: valuation allowance	(60,866)		(59,598)
Total deferred tax asset, net of valuation allowance	131,304		134,873
Deferred tax liabilities:
Intangibles	(144,327)		(171,113)
Operating lease assets	(7,251)		(7,338)
Other	(4,689)		(6,231)
Total deferred tax liabilities	(156,267)		(184,682)
Net deferred tax liabilities	$	(24,963)	$	(49,809)

Summary of valuation allowance

A reconciliation of the deferred asset valuation allowance is as follows (dollars in thousands):

	Years Ended December 31,
	2023		2022		2021
Beginning balance	$	59,598	$	70,529	$	582
Acquisition Accounting (1)	—		(2,305)		69,697
Additions	1,268		435		250
Deductions	—		(9,061)		—
Ending balance	$	60,866	$	59,598	$	70,529

(1) Amount comprised principally of acquisitions and purchase accounting adjustments in connect with acquisitions

Schedule of reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (dollars in thousands):

	Years Ended December 31,
	2023		2022		2021
Balance as of January 1	$	4,323	$	6,100	$	5,881
Gross increases related to current year tax positions	112		32		898
Gross increases related to prior year tax positions	9		—		—
Gross decreases related to prior year tax positions	—		(39)		(363)
Lapse of statute of limitations	(2,295)		$	(1,770)	(316)
Balance as of December 31	$	2,149	$	4,323	$	6,100