Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income before income tax provision included the following components:

The provision for income taxes was composed of the following:

The reconciliation of the U.S. federal statutory tax rate to the consolidated effective tax rate was as follows:


	Year Ended December 31,
	2023		2022		2021
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Nondeductible expenses	2.1		2.3		2.8
State income taxes, net of federal benefit	0.6		0.9		0.6
Foreign rate differential	0.4		—		(0.1)

Stock-based compensation	—		(1.5)		(5.4)
Benefit from tax planning and entity structuring activities	(0.3)		(2.5)		(0.8)
U.S. federal tax (benefit) expense on foreign earnings	(1.2)		(2.4)		0.4

Research and development credits	(3.2)		(3.2)		(3.1)
Foreign-derived intangible income deduction	(4.1)		(5.7)		(4.0)
Other	0.2		0.1		0.4
	15.5	%	9.0	%	11.8	%

The components of deferred tax assets and liabilities are as follows:


	December 31,
(in thousands)	2023		2022
Deferred tax assets:
Research and experimentation capitalization	$	148,355	$	85,677
Uncertain tax positions	52,685		41,569
Net operating loss carryforwards	34,907		39,034
Stock-based compensation	33,473		27,548
Debt obligation basis difference	30,289		28,758
Operating lease liabilities	28,380		31,726
Employee benefits	13,662		13,343
Research and development credits	5,506		5,390
Allowance for doubtful accounts	4,836		4,376
Other	—		2,638
Valuation allowance	(17,608)		(17,336)
Total deferred tax assets	334,485		262,723
Deferred tax liabilities:
Other intangible assets	(202,404)		(192,018)
Operating lease right-of-use assets	(26,878)		(30,308)
Deferred revenue	(12,080)		(8,979)
Property and equipment	(3,607)		(5,029)
Other	(590)		—
Total deferred tax liabilities	(245,559)		(236,334)
Net deferred tax assets	$	88,926	$	26,389

The following is a reconciliation of the total amounts of unrecognized tax benefits:


	Year Ended December 31,
(in thousands)	2023		2022		2021
Unrecognized tax benefit as of January 1	$	45,772	$	39,641	$	24,075
Gross changes—acquisitions	—		—		—
Gross increases—tax positions in prior period	—		403		10,183
Gross decreases—tax positions in prior period	(1,782)		(2,780)		(2,281)
Gross increases—tax positions in current period	14,814		13,905		13,223
Reductions due to a lapse of the applicable statute of limitations	(3,236)		(3,743)		(3,226)
Changes due to currency fluctuation	(684)		(1,654)		(912)
Settlements	—		—		(1,421)
Unrecognized tax benefit as of December 31	$	54,884	$	45,772	$	39,641