Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of provision for income taxes relating to continuing operations

Our provision (benefit) for income taxes relating to continuing operations consists of the following (in thousands):

	December 31,
	2023		2022		2021
Current tax provision (benefit)—
Federal	$	(34,722)	$	58,040	$	31,283
State		4,222		26,376		8,741
Total current		(30,500)		84,416		40,024
Deferred tax provision (benefit)—
Federal		81,119		(80,130)		6,197
State		14,177		(14,375)		705
Total deferred		95,296		(94,505)		6,902
Provision (benefit) for income taxes	$	64,796	$	(10,089)	$	46,926

Schedule of difference in income taxes provided for and the amounts determined by applying the federal statutory tax rate to income before income taxes results

The provision (benefit) for income taxes for the years ended December 31, 2023, 2022 and 2021 resulted in effective tax rates on continuing operations of 16.7%, (4.3%) and 24.7%, respectively. The reasons for the differences between these effective tax rates and the federal statutory rates are as follows (in thousands, except percentages):

	December 31,
	2023			2022			2021
Federal statutory rate of—		21	%		21	%		21	%
Income taxes at the federal statutory rate	$	81,521		$	49,530		$	39,958
Increases (decreases) resulting from—
Net state income taxes		14,278			9,376			7,340
Net unrecognized tax benefits		9,049			(17,922)			640
Nondeductible expenses		5,774			4,045			2,381
R&D tax credit		(43,791)			(51,398)			—
Stock-based compensation deductions		(928)			(872)			(2,210)
Other		(1,107)			(2,848)			(1,183)
Provision (benefit) for income taxes	$	64,796		$	(10,089)		$	46,926

Schedule of significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the Consolidated Balance Sheets

Significant components of the deferred tax assets and deferred tax liabilities as reflected on the Consolidated Balance Sheets are as follows (in thousands):

	Year Ended
	December 31,
	2023		2022
Deferred tax assets—
Accounts receivable and allowance for credit losses	$	3,203	$	2,530
Stock-based compensation		4,549		3,809
Accrued liabilities and expenses		44,209		34,179
Lease liabilities		51,065		32,048
Net operating loss carryforwards		5,877		5,361
Intangible assets		8,570		9,204
Research and experimental expenditures		195,444		106,002
Other		1,234		539
Subtotal		314,151		193,672
Valuation allowances		(156)		(379)
Total deferred tax assets		313,995		193,293
Deferred tax liabilities—
Property and equipment		(27,049)		(18,882)
Lease right-of-use asset		(51,058)		(32,025)
Long-term contracts		(193,144)		(1,870)
Goodwill		(24,452)		(23,288)
Other		(1,689)		(1,563)
Total deferred tax liabilities		(297,392)		(77,628)
Net deferred tax assets	$	16,603	$	115,665

Schedule of deferred income tax assets and liabilities included in the consolidated balance sheets

The deferred tax assets and deferred tax liabilities reflected above are included in the Consolidated Balance Sheets as follows (in thousands):

	December 31,
	2023		2022
Deferred tax assets	$	17,723	$	115,665
Deferred tax liabilities	$	1,120	$	—

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):

	Year Ended December 31,
	2023		2022		2021
Balance at beginning of year	$	11,530	$	29,452	$	28,756
Additions based on tax positions related to current year		6,370		3,420		207
Additions based on tax positions related to prior years		2,723		7,427		489
Reductions for tax positions related to prior years		(44)		(13)		—
Reductions for settlements with taxing authorities		—		(28,756)		—
Balance at end of year	$	20,579	$	11,530	$	29,452