Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 - Income Taxes

The provision for income taxes for the three and nine months ended September 30, 2023, and 2022, consisted of the following:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2023			2022			2023			2022
	(in thousands)
Current portion of income tax expense:
Federal	$	(3,923)		$	(7,014)		$	(6,732)		$	(11,287)
State	(1,173)			(2,317)			(1,716)			(4,668)
Deferred portion of income tax (expense) benefit	51,075			(110,048)			(43,171)			(202,996)
Income tax (expense) benefit	$	45,979		$	(119,379)		$	(51,619)		$	(218,951)
Effective tax rate	(26.1)		%	19.9		%	8.3		%	20.4		%

Income tax expense or benefit differs from the amount that would be calculated by applying the statutory United States federal income tax rate to income or loss before income taxes. These differences primarily relate to the effect of state income taxes, excess tax benefits and deficiencies from stock-based compensation awards, tax deduction limitations on the compensation of covered individuals, benefits from qualifying credits, changes in valuation allowances, the cumulative effect of other smaller permanent differences, and can also reflect the cumulative effect of an enacted tax rate change, in the period of enactment, on the Company’s net deferred tax asset and liability balances. The quarterly effective tax rate and the resulting income tax expense or benefit can also be affected by the proportional effects of forecast net income or loss and the correlative effect on the valuation allowance for each of the periods presented in the table above.

The Company commissioned a multi-year research and development (“R&D”) credit study in 2022, which was completed during the third quarter of 2023, and resulted in a favorable adjustment to the Company’s effective tax rate and a reduction of the Company’s 2022 and expected 2023 tax obligations. After utilizing a portion of the credits for the 2022 and 2023 tax years, the recorded net carryover R&D credit, as of September 30, 2023, expected to be utilized in future periods totaled $52.3 million.

For all years before 2019, the Company is generally no longer subject to United States federal or state income tax examinations by tax authorities.