Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income tax (Benefit) Expense

The components of the Company’s income tax (benefit) expense are as follows:

	Year Ended December 31,
(in thousands)	2020			2019			2018
Current
Federal	$	235		$	20,012		$	10,368
State		848			2,592			620
		1,083			22,604			10,988
Deferred
Federal		(7,472	)		(4,670	)		(1,789	)
State		(3,438	)		(1,004	)		(644	)
		(10,910	)		(5,674	)		(2,433	)
Total income tax (benefit) expense	$	(9,827	)	$	16,930		$	8,555

Schedule of Reconciliation of Income Tax (Benefit) Expense

The reconciliation of the income tax (benefit) expense computed at the U.S. Federal statutory rate of 21% to the Company's income tax (benefit) expense is as follows:

	Year Ended December 31,
(in thousands)	2020			2019			2018
Income taxes computed at Federal statutory rate	$	(63,725	)	$	17,425		$	10,993
State income taxes		(2,768	)		988			(154	)
Stock-based compensation		609			313			(99	)
Excess tax benefits related to stock- based compensation		(19,961	)		(788	)		(1,276	)
Research and development credits		(3,541	)		(1,661	)		(858	)
Nondeductible officers' compensation		79,046			—			—
(Decrease) increase in valuation allowance		(293	)		380			—
Other		806			273			(51	)
Income tax (benefit) expense	$	(9,827	)	$	16,930		$	8,555
Effective income tax rate		3.2	%		20.4	%		16.3	%

Schedule of Components of Net Deferred Tax Assets

The components of the net deferred tax assets are as follows:

	December 31,
(in thousands)	2020			2019
Deferred tax assets
Other assets	$	2,303		$	3,108
Lease liabilities		8,747			9,111
Stock-based compensation		4,422			840
Research and development credits, net of reserves		4,146			1,845
Tax credit carryforward		296			—
Charitable contribution carryforward		8,403			—
Goodwill		9,329			2,524
Net operating losses		215			570
Total deferred tax assets		37,861			17,998
Valuation allowance		(268	)		(561	)
Deferred tax assets, net of valuation allowance		37,593			17,437
Deferred tax liabilities
Other liabilities		(825	)		(214	)
Lease assets		(6,377	)		(9,002	)
Property and equipment		(4,621	)		(335	)
Capitalized software		(4,557	)		(1,072	)
Intangible assets		(8,096	)		(4,607	)
Total deferred tax liabilities		(24,476	)		(15,230	)
Net deferred tax assets	$	13,117		$	2,207

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, 2017	$	865
Increases related to prior year tax positions		458
Increases related to current year tax positions		3,186
Gross unrecognized tax benefits at December 31, 2018		4,509
Decreases related to prior year tax positions		(879	)
Increases related to current year tax positions		744
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