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INCOME TAX
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAX INCOME TAX
Income tax provision on income from operations consists of the following:
 Years Ended December 31,
 202420232022
Current:   
Federal$60,997 $86,218 $84,570 
State14,807 19,803 25,975 
 75,804 106,021 110,545 
Deferred(30,663)(73,704)(87,192)
 $45,141 $32,317 $23,353 
Reconciliation of the U.S. statutory income tax rate to our effective income tax expense rate for operations follows:
 Years Ended December 31,
 202420232022
Federal income tax expense at statutory rate$64,715 $41,630 $39,395 
State income tax, net of federal income tax benefit8,917 6,881 9,197 
Net operating loss carryback— — (261)
Excess tax benefits of share-based compensation(21,143)(9,325)(7,752)
Tax credits(22,095)(20,494)(31,334)
Non-deductible business expenses4,786 5,191 5,425 
Uncertain tax positions10,109 7,647 8,338 
Other, net(148)787 345 
 $45,141 $32,317 $23,353 
The tax effects of the major items recorded as deferred tax assets and liabilities as of December 31 are:
 20242023
Deferred income tax assets:  
Capitalized research and experimental expenditures$157,812 $130,972 
Operating expenses not currently deductible8,593 22,180 
Stock option and other employee benefit plans22,095 21,864 
Loss and credit carryforwards5,836 7,430 
Deferred revenue1,670 1,923 
Other55 111 
Total deferred income tax assets196,061 184,480 
Valuation allowance(794)— 
Total deferred income tax assets, net of valuation allowance195,267 184,480 
Deferred income tax liabilities:  
Intangible assets(223,459)(242,522)
Property and equipment(5,624)(8,659)
Prepaid expenses(13,687)(11,889)
Total deferred income tax liabilities(242,770)(263,070)
Net deferred income tax liabilities$(47,503)$(78,590)
As of December 31, 2024, the capitalization and amortization requirements of research and experimental expenditures pursuant to the Tax Cuts and Jobs Act of 2017 (“TCJA”) changes to Internal Revenue Code Section 174 resulted in a deferred tax asset of $157.8 million.
As of December 31, 2024, we had after-tax federal and state net operating loss and net tax credit carryforwards of $5.8 million, that will begin expiring in 2033, if not utilized. The acquired carryforwards are subject to an annual limitation but are expected to be realized. A valuation allowance was recorded against a state research and development credit carryforward in 2024 for $0.8 million due to state taxable income limitations on credit utilization. We believe it is more likely than not that all other deferred tax assets will be realized. However, the amount of the deferred tax asset considered realizable could be adjusted in the future if estimates of taxable income or reversing taxable temporary differences are revised.
The following table provides a reconciliation of the gross unrecognized tax benefits from uncertain tax positions for the years ended December 31:
20242023
Balance at beginning of period$20,869 $14,044 
Additions for tax positions of prior period4,970 3,087 
Reductions for tax positions of prior period— (338)
Additions for tax positions of current period4,346 4,838 
Expiration of statutes of limitations(430)(762)
Balance at end of period$29,755 $20,869 
As of December 31, 2024 and December 31, 2023, we had uncertain tax positions of $32.2 million and $22.1 million, including interest and penalties, respectively, recorded within deferred tax liabilities, other long-term assets, and other long-term liabilities in our consolidated balance sheets. The total amount of unrecognized tax benefits, net of the federal income tax benefit of state taxes, if recognized, that would affect the effective tax rate is $28.6 million, $20.1 million and $13.3 million as of December 31, 2024, 2023, and 2022, respectively. It is reasonably possible that events will occur during the next 12 months that would cause the total amount of unrecognized tax benefits to increase or decrease. However, we do not expect such increases or decreases to be material to the Company’s financial condition or results of operations.
We are subject to U.S. federal income tax, as well as income tax of multiple state, local and foreign jurisdictions. We are routinely subject to income tax examinations by these taxing jurisdictions, but we do not have a history of, nor do we expect any material adjustments as a result of these examinations. With few exceptions, major U.S. federal, state, local and foreign jurisdictions are no longer subject to examination for years before 2020. As of February 19, 2025, no significant adjustments have been proposed by any taxing jurisdiction.