Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Income (Loss) Before Income Taxes and Equity Loss in Investee and Gain (Loss) on Equity-Method Investments

The following table summarizes income (loss) before income taxes, equity loss in investee and gain (loss) on equity-method investments:

	Year Ended December 31,
	2022			2021			2020
	(in thousands)
U.S. income before income taxes, equity loss in investee and gain (loss) on equity-method investments	$	189,406		$	681,403		$	291,739
Foreign loss before income taxes, equity loss in investee and gain (loss) on equity-method investments		(5,381	)		(4,103	)		(55	)
Income before income taxes, equity loss in investee and gain (loss) on equity-method investments	$	184,025		$	677,300		$	291,684

Income Tax Expense (Benefit)

Income tax expense consisted of the following:

	Year Ended December 31,
	2022			2021			2020
	(in thousands)
Current:
Federal	$	31,140		$	131,907		$	53,794
State		19,242			51,076			20,513
Total Current		50,382			182,983			74,307
Deferred:
Federal		(3,763	)		(7,471	)		(248	)
State		(4,517	)		(717	)		(14	)
Foreign		224			669			—
Change in valuation allowance		(224	)		(669	)		(1,513	)
Total Deferred		(8,280	)		(8,188	)		(1,775	)
Total income tax expense	$	42,102		$	174,795		$	72,532

Reconciliation of Difference between Federal Statutory Income Tax Rate and Effective Income Tax Rate

Reconciliation of the difference between the federal statutory income tax rate and the effective income tax rate is as follows:

	Year Ended December 31,
	2022			2021			2020
Tax provision at federal statutory rate		21.00	%		21.00	%		21.00	%
State taxes		7.01	%		5.99	%		5.68	%
Uncertain tax positions		0.92	%		0.05	%		0.13	%
Stock based compensation		-1.12	%		-1.96	%		-0.92	%
Return to provision		-3.92	%		-0.17	%		-0.11	%
Other permanent differences		1.33	%		1.09	%		0.02	%
Research & development credit		-2.98	%		-0.33	%		-0.40	%
Other		0.34	%		0.19	%		-0.01	%
Change in valuation allowance		0.12	%		-0.10	%		-0.52	%
Effective tax rate		22.70	%		25.76	%		24.87	%

Summary of Elements of Deferred Tax Assets (Liabilities)

The following table summarizes the elements of the deferred tax assets (liabilities). Net deferred tax assets are included in other long-term assets in the Consolidated Balance Sheets.

	As of December 31,
	2022			2021
	(in thousands)
Deferred tax assets
Accrued vacation and other accrued expenses	$	1,488		$	1,486
Provision for credit losses		10,255			2,755
Net operating losses		16,345			199
Stock based compensation		2,550			1,739
State income taxes		4,892			10,991
Excess tax basis in FF Gene Biotech net assets		2,032			—
Foreign		—			1,808
Lease liability		4,086			1,643
Unrealized gain/loss on available-for-sale debt securities		7,664			437
Section 174 research & experimental expenditures		6,573			—
Equity loss in investment		503			700
Other		199			162
Gross deferred tax assets		56,587			21,920
Less: Valuation allowance		(2,832	)		(2,609	)
Net deferred tax assets		53,755			19,311
Deferred tax liabilities
Intangible assets		39,199			8,083
Depreciation		5,500			7,371
Right of use asset		4,056			1,640
Other		1,496			1,458
Total deferred tax liabilities		50,251			18,552
Net deferred tax assets	$	3,504		$	759

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the Company’s gross unrecognized tax benefits is as follows:

	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Balance at beginning of year	$	710	$	377	$	—
Increases to prior year positions		2,843		—		141
Increases for current year positions		6,189		333		236
Balance at end of year	$	9,742	$	710	$	377