Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of income Tax Provision

The components of the income tax provision include the following for the year ended December 31:

	2022			2021			2020
	(in thousands)
Current:
Federal	$	141,968		$	142,010		$	82,238
State		38,018			29,873			17,100
Foreign		—			—			—
Total current tax expense	$	179,986		$	171,883		$	99,338
Deferred:
Federal	$	(19,152	)	$	(21,033	)	$	(3,694	)
State		800			(4,343	)		(1,193	)
Foreign		(48,508	)		—			—
Total deferred tax expense	$	(66,860	)	$	(25,376	)	$	(4,887	)
Change in valuation allowance		48,694			196			—
Total income tax expense	$	161,820		$	146,703		$	94,451

Summary of Federal Statutory Income Tax Rate Percentage to Effective Tax Rate

A reconciliation of the Federal statutory income tax rate percentage to the effective tax rate is as follows for the year ended December 31:

	2022			2021			2020
	(in thousands)
(Loss) income before income taxes	$	(43,345	)	$	166,087		$	157,449
Federal statutory rate		21.0	%		21.0	%		21.0	%
Theoretical tax (benefit) expense	$	(9,102	)	$	34,878		$	33,064
Effects of tax rates in foreign jurisdictions	$	(57,272	)	$	—		$	—
State taxes		38,819			25,530			12,407
Uncertain tax position, inclusive of interest and penalties		(5,049	)		571			—
Change in valuation allowance		48,694			—			—
Other		(4,781	)		(156	)		(1,666	)
Tax effect of non-deductible expenses:
IRC Section 280E disallowance		137,413			85,615			50,646
Stock compensation		4,497			95			—
Political contributions		4,318			170			—
Non-recurring Expenses		4,283			—			—
Total non-deductible expenses	$	150,511		$	85,880		$	50,646
Total income tax expense	$	161,820		$	146,703		$	94,451

Summary of Deferred Income Taxes

Deferred income taxes consist of the following as of December 31:

	2022			2021			2020
	(in thousands)
Deferred tax assets:
Lease liabilities	$	3,094		$	7,015		$	1,219
Finance liabilities		27,386			15,715			—
Net operating losses		46,702			7,845			—
Contingent liabilities		7,487			—			—
Debt Discount		1,848			—			—
Other deferred tax assets		3,921			1,562			7,025
Total deferred tax assets:	$	90,438		$	32,137		$	8,244
Deferred tax liabilities:
Right of use assets	$	(3,112	)	$	(6,582	)	$	(1,210	)
Intangible assets		(237,309	)		(252,205	)		(18,999	)
Property and equipment		(19,004	)		(8,406	)		(3,482	)
Other deferred tax liabilities		(1,507	)		—			—
Total deferred tax liabilities:	$	(260,932	)	$	(267,193	)	$	(23,691	)
Valuation allowance		(53,643	)		(6,826	)		—
Net deferred tax liability	$	(224,137	)	$	(241,882	)	$	(15,447	)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2022			2021
	(in thousands)
Beginning balance	$	44,850		$	3,770
Reductions based on lapse of statute of limitations		(4,228	)		—
Additions based on tax positions related to the prior year		1,159			—
Additions for tax positions of prior years recorded to goodwill		—			41,080
Ending balance	$	41,781		$	44,850