Annual report [Section 13 and 15(d), not S-K Item 405]

Income Tax (Tables)

v3.25.0.1
Income Tax (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax  
Components of income before income tax provision

Year Ended December 31, 

(in thousands)

    

2024

    

2023

    

2022

Domestic

$

65,774

$

91,018

$

54,162

Foreign

 

23,016

 

4,859

 

5,206

Income before income taxes

$

88,790

$

95,877

$

59,368

Schedule of income tax provision

Year Ended December 31, 

(in thousands)

    

2024

    

2023

    

2022

Current

 

  

 

  

 

  

Federal

$

31,492

$

35,225

$

20,599

State

 

16,893

 

12,848

 

14,435

Foreign

 

5,798

 

1,399

 

711

Total current tax provision

$

54,183

$

49,472

$

35,745

Deferred

 

  

 

  

 

  

Federal

$

(16,154)

$

(17,694)

$

(15,467)

State

 

(4,451)

 

(6,806)

 

(4,324)

Foreign

 

(1,019)

 

(561)

 

146

Total deferred tax benefit

$

(21,624)

$

(25,061)

$

(19,645)

Income tax provision

$

32,559

$

24,411

$

16,100

Schedule of reconciliation of the statutory U.S. income tax rate to the effective income tax rate

Year Ended December 31, 

 

    

2024

    

2023

    

2022

 

Statutory federal tax rate

 

21.0

%  

21.0

%

21.0

%

State taxes

 

10.0

5.1

9.7

Tax credits

 

(4.8)

(2.1)

(5.6)

Foreign tax effects

 

2.5

0.5

0.2

Non‑deductible items and other

 

0.4

0.4

1.5

Changes in tax reserves

 

(0.8)

1.7

Provision to return adjustment

 

(0.9)

1.7

(1.2)

Transaction costs

0.1

0.3

Global Intangible Low Tax Income

 

3.2

1.1

1.0

Foreign-Derived Intangible Income

(2.1)

(2.9)

Non-deductible officers' compensation

4.0

1.8

2.7

Stock-based compensation

 

3.1

(0.5)

(3.9)

Effective tax rate

 

36.5

%  

25.6

%  

27.1

%

Components of deferred tax assets and liabilities

As of December 31, 

(in thousands)

    

2024

    

2023

Deferred tax assets:

 

  

 

  

Allowance for doubtful accounts

$

1,762

$

2,327

Accrued expenses and other

 

4,295

 

5,271

Stock compensation

10,089

6,140

Capitalized costs

42,841

31,542

Lease liability

21,468

21,071

Net operating losses

 

2,873

 

3,719

Gross deferred tax assets

 

83,328

 

70,070

Valuation allowance

 

(636)

 

(636)

Net deferred tax assets

$

82,692

$

69,434

Deferred tax liabilities:

 

  

 

  

ROU asset

$

(15,771)

$

(15,464)

Purchased intangibles

(30,110)

(38,360)

Depreciation and amortization

 

(9,832)

 

(10,652)

Total deferred tax liabilities

 

(55,713)

 

(64,476)

Net deferred tax asset

$

26,979

$

4,958

Schedule of unrecognized tax benefits

Year Ended December 31, 

(in thousands)

    

2024

    

2023

Beginning balance

$

2,690

$

3,415

Increase related to tax positions of prior years

 

287

 

62

Increase related to tax positions of the current year

 

433

 

250

Decrease due to lapse in statutes of limitations

(759)

(1,037)

Ending balance

$

2,651

$

2,690