Income Tax (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| Income Tax |
|
| Components of income before income tax (benefit) provision |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
(in thousands) |
|
2023 |
|
2022 |
|
2021 |
Domestic |
|
$ |
91,018 |
|
$ |
54,162 |
|
$ |
16,499 |
Foreign |
|
|
4,859 |
|
|
5,206 |
|
|
9,322 |
Income before income taxes |
|
$ |
95,877 |
|
$ |
59,368 |
|
$ |
25,821 |
|
| Schedule of income tax provision (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
(in thousands) |
|
2023 |
|
2022 |
|
2021 |
Current |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
35,225 |
|
$ |
20,599 |
|
$ |
821 |
State |
|
|
12,848 |
|
|
14,435 |
|
|
1,508 |
Foreign |
|
|
1,399 |
|
|
711 |
|
|
1,999 |
Total current tax provision |
|
$ |
49,472 |
|
$ |
35,745 |
|
$ |
4,328 |
Deferred |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(17,694) |
|
$ |
(15,467) |
|
$ |
(5,545) |
State |
|
|
(6,806) |
|
|
(4,324) |
|
|
(2,241) |
Foreign |
|
|
(561) |
|
|
146 |
|
|
(29) |
Total deferred tax benefit |
|
$ |
(25,061) |
|
$ |
(19,645) |
|
$ |
(7,815) |
Income tax provision (benefit) |
|
$ |
24,411 |
|
$ |
16,100 |
|
$ |
(3,487) |
|
| Schedule of reconciliation of the statutory U.S. income tax rate to the effective income tax rate |
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
2022 |
|
2021 |
|
Statutory federal tax rate |
|
21.0 |
% |
21.0 |
% |
21.0 |
% |
State taxes |
|
5.1 |
|
9.7 |
|
(3.3) |
|
Tax credits |
|
(2.1) |
|
(5.6) |
|
(3.9) |
|
Foreign tax effects |
|
0.5 |
|
0.2 |
|
— |
|
Non‑deductible items and other |
|
0.4 |
|
1.5 |
|
(0.6) |
|
Changes in tax reserves |
|
(0.8) |
|
1.7 |
|
1.9 |
|
Provision to return adjustment |
|
1.7 |
|
(1.2) |
|
0.5 |
|
Transaction costs |
|
0.3 |
|
— |
|
18.9 |
|
Global Intangible Low Tax Income |
|
1.1 |
|
1.0 |
|
0.7 |
|
Foreign-Derived Intangible Income |
|
(2.9) |
|
— |
|
— |
|
Non-deductible officers' compensation |
|
1.8 |
|
2.7 |
|
47.8 |
|
Non‑cash compensation |
|
(0.5) |
|
(3.9) |
|
(96.5) |
|
Effective tax rate |
|
25.6 |
% |
27.1 |
% |
(13.5) |
% |
|
| Components of deferred tax assets and liabilities |
|
|
|
|
|
|
|
|
|
As of December 31, |
(in thousands) |
|
2023 |
|
2022 |
Deferred tax assets: |
|
|
|
|
|
|
Allowance for doubtful accounts |
|
$ |
2,327 |
|
$ |
2,338 |
Accrued expenses and other |
|
|
5,271 |
|
|
6,299 |
Stock compensation |
|
|
6,140 |
|
|
3,920 |
Capitalized costs |
|
|
31,542 |
|
|
18,839 |
Lease liability |
|
|
21,071 |
|
|
22,941 |
Net operating losses |
|
|
3,719 |
|
|
4,117 |
Gross deferred tax assets |
|
|
70,070 |
|
|
58,454 |
Valuation allowance |
|
|
(636) |
|
|
(500) |
Net deferred tax assets |
|
$ |
69,434 |
|
$ |
57,954 |
Deferred tax liabilities: |
|
|
|
|
|
|
ROU asset |
|
$ |
(15,464) |
|
$ |
(18,042) |
Purchased intangibles |
|
|
(38,360) |
|
|
(38,216) |
Depreciation and amortization |
|
|
(10,652) |
|
|
(14,551) |
Total deferred tax liabilities |
|
|
(64,476) |
|
|
(70,809) |
Net deferred tax asset (liability) |
|
$ |
4,958 |
|
$ |
(12,855) |
|
| Schedule of unrecognized tax benefits |
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
(in thousands) |
|
2023 |
|
2022 |
Beginning balance |
|
$ |
3,415 |
|
$ |
2,363 |
Increase related to tax positions of prior years |
|
|
62 |
|
|
432 |
Increase related to tax positions of the current year |
|
|
250 |
|
|
620 |
Decrease due to lapse in statutes of limitations |
|
|
(1,037) |
|
|
— |
Ending balance |
|
$ |
2,690 |
|
$ |
3,415 |
|