Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income tax (Benefit) Expense

The components of our income taxes are as follows:

	Year Ended December 31,
(in thousands)	2022			2021			2020
Current
Federal	$	6,974		$	(361	)	$	235
State		3,120			2,532			848
Total current income tax expense		10,094			2,171			1,083
Deferred
Federal		(421	)		6,521			(7,472	)
State		(76	)		6,385			(3,438	)
Total deferred income tax (benefit) expense		(497	)		12,906			(10,910	)
Total income tax expense (benefit)	$	9,597		$	15,077		$	(9,827	)

Schedule of Reconciliation of Income Tax (Benefit) Expense

:

	Year Ended December 31,
(dollars in thousands)	2022			2021			2020
Income taxes computed at federal statutory rate	$	(4,879	)	$	(2,137	)	$	(63,725	)
State income taxes (1)		2,465			8,385			(2,768	)
Stock-based compensation		383			491			609
Excess tax (benefits) related to stock-based compensation		4,565			(43,797	)		(19,961	)
Research and development credits, net of reserves		(6,401	)		(8,206	)		(3,541	)
Nondeductible officers' compensation		12,295			21,905			79,046
Increase (decrease) in valuation allowance		68			37,782			(293	)
Transaction costs		39			438			277
Basis difference on disposition		659			—			—
Nondeductible penalties		318			16			6
Other		85			200			523
Income tax expense (benefit)	$	9,597		$	15,077		$	(9,827	)
Effective income tax rate		(41.3	%)		(148.1	%)		3.2	%

(1)Includes the state tax effects for (i) excess tax (benefits) related to stock-based compensation of $0.8 million, ($6.4) million and ($1.7) million for 2022, 2021 and 2020, respectively, and (ii) increase in valuation allowance of $4.4 and $14.6 million for 2022 and 2021, respectively. The state tax effect for valuation allowance in 2020 was not material.

Schedule of Components of Net Deferred Taxes

:

	December 31,
(in thousands)	2022			2021
Deferred tax assets
Other assets	$	2,703		$	5,072
Operating lease liabilities		14,402			9,702
Stock-based compensation		12,542			10,097
Research and development credits, net of reserves		14,382			19,407
Tax credit carryforward		769			580
Interest expense carryforward		—			4,699
Charitable contribution carryforward		6,810			8,817
Goodwill		10,705			8,668
Capitalized research and development expenditures		9,269			—
Net operating losses		8,737			21,907
Total deferred tax assets		80,319			88,949
Valuation allowance		(57,115	)		(52,679	)
Deferred tax assets, net of valuation allowance		23,204			36,270
Deferred tax liabilities
Other liabilities		(1,143	)		(527	)
Operating lease right-of-use assets		(8,815	)		(6,727	)
Property and equipment		(4,383	)		(4,699	)
Capitalized software		—			(10,926	)
Intangible assets		(9,157	)		(13,635	)
Total deferred tax liabilities		(23,498	)		(36,514	)
Total deferred tax liabilities, net	$	(294	)	$	(244	)

Schedule of Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

(in thousands)
Gross unrecognized tax benefits at December 31, 2019	$	4,374
Increases related to prior year tax positions		126
Increases related to current year tax positions		3,327
Settlements with taxing authorities		(119	)
Lapse of statute of limitations		(317	)
Gross unrecognized tax benefits at December 31, 2020		7,391
Increases related to prior year tax positions		999
Increases related to current year tax positions		6,911
Lapse of statute of limitations		(505	)
Gross unrecognized tax benefits at December 31, 2021		14,796
Increases related to prior year tax positions		422
Increases related to current year tax positions		2,444
Decreases related to prior year tax positions		(1,160	)
Lapse of statute of limitations		(1,804	)
Gross unrecognized tax benefits at December 31, 2022	$	14,698