Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Summary of Income (Loss) Before Income Taxes and Gain on Equity-Method Investments

The following table summarizes income (loss) before income taxes and gain on equity-method investments:

	Year Ended December 31,
	2023			2022			2021
	(in thousands)
U.S. (loss) income before income taxes and gain on equity-method investments	$	(147,464	)	$	189,406		$	681,403
Foreign loss before income taxes and gain on equity-method investments		(26,621	)		(5,381	)		(4,103	)
(Loss) income before income taxes and gain on equity-method investments	$	(174,085	)	$	184,025		$	677,300

Income Tax Expense (Benefit)

Income tax expense consisted of the following:

	Year Ended December 31,
	2023			2022			2021
	(in thousands)
Current:
Federal	$	(5,590	)	$	31,140		$	131,907
State		(4,722	)		19,242			51,076
Total Current		(10,312	)		50,382			182,983
Deferred:
Federal		(12,771	)		(3,763	)		(7,471	)
State		4,100			(4,517	)		(717	)
Foreign		(188	)		224			669
Change in valuation allowance		20,325			(224	)		(669	)
Total Deferred		11,466			(8,280	)		(8,188	)
Total income tax expense	$	1,154		$	42,102		$	174,795

Reconciliation of Difference between Federal Statutory Income Tax Rate and Effective Income Tax Rate

Reconciliation of the difference between the federal statutory income tax rate and the effective income tax rate is as follows:

	Year Ended December 31,
	2023			2022			2021
Tax provision at federal statutory rate		21.00	%	21.00%			21.00%
State taxes		0.22	%		9.03	%		6.13	%
Uncertain tax positions		0.18	%	0.92%			0.05%
Stock based compensation		-1.65	%		-1.12	%		-1.96	%
Nondeductible compensation - 162(m)		-0.55	%		0.00	%		0.00	%
Goodwill impairment		-10.62	%		0.00	%		0.00	%
Federal return to provision		-0.21	%		-3.92	%		-0.17	%
State return to provision		3.41	%		-2.02	%		-0.14	%
Other permanent differences		-1.15	%	1.33%			1.09%
Research & development credit		3.19	%		-2.98	%		-0.33	%
Foreign tax rate differential		-2.42	%		0.00	%		0.00	%
Other		0.11	%	0.34%			0.19%
Change in valuation allowance		-12.20	%	0.12%				-0.10	%
Effective tax rate		-0.69	%	22.70%			25.76%

Summary of Elements of Deferred Tax Assets (Liabilities)

The following table summarizes the elements of the deferred tax assets (liabilities). Net deferred tax assets are included in other long-term assets in the Consolidated Balance Sheets.

	As of December 31,
	2023			2022
	(in thousands)
Deferred tax assets
Accrued vacation and other accrued expenses	$	807		$	1,488
Provision for credit losses		818			10,255
Net operating losses		17,496			16,345
Stock based compensation		906			2,550
State income taxes		211			4,892
Excess tax basis in FF Gene Biotech net assets		2,256			2,032
Lease liability		2,345			4,086
Unrealized gain/loss on available-for-sale debt securities		406			7,664
Research and development credits		1,258			—
Section 174 research & experimental expenditures		18,606			6,573
Equity loss in investment		503			503
Other		107			199
Gross deferred tax assets		45,719			56,587
Less: Valuation allowance		(15,900	)		(2,832	)
Net deferred tax assets		29,819			53,755
Deferred tax liabilities
Intangible assets		30,558			39,199
Depreciation		3,901			5,500
Right of use asset		2,299			4,056
Other		1,023			1,496
Total deferred tax liabilities		37,781			50,251
Net deferred tax assets	$	(7,962	)	$	3,504

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the Company’s gross unrecognized tax benefits is as follows:

	Year Ended December 31,
	2023			2022		2021
	(in thousands)
Balance at beginning of year	$	9,742		$	710	$	377
Increases to prior year positions		(3,845	)		2,843		—
Increases for current year positions		(64	)		6,189		333
Balance at end of year	$	5,833		$	9,742	$	710