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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Our provision for income taxes was comprised of the following components:
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | 20,168 |  |  | $ | 13,881 |  |  | $ | 1,559 |
State | 4,221 |  |  | 4,149 |  |  | 1,890 |
Foreign | 2,103 |  |  | 1,990 |  |  | 1,610 |
Deferred |  |  |  |  |
Federal | (5,425) |  |  | (2,530) |  |  | 4,294 |
State | (390) |  |  | (751) |  |  | (88) |
Foreign | (938) |  |  | (549) |  |  | (321) |
| $ | 19,739 |  |  | $ | 16,190 |  |  | $ | 8,944 |
Our income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to pretax income as a result of the following:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
U.S. statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |
U.S. state income taxes, net of federal tax effect | 5.1 |  |  | 4.6 |  |  | 4.5 |
Tax impact of stock activity | (5.6) |  |  | (4.7) |  |  | (12.8) |
Nondeductible compensation | 4.7 |  |  | 3.5 |  |  | 5.0 |
Research and development credit | (1.5) |  |  | (1.5) |  |  | (1.1) |
Foreign derived intangible income | (1.3) |  |  | (1.4) |  |  | (1.3) |
Other | 0.7 |  |  | 1.2 |  |  | 1.4 |
Effective tax rate | 23.1 | % |  | 22.7 | % |  | 16.7 | %
The significant components of our deferred income tax assets and liabilities were as follows:
| December 31,
(in thousands) | 2023 |  | 2022
Deferred income tax assets |  |  |
Net operating loss and credit carryforwards | $ | 10,212 |  |  | $ | 9,970 |
Stock-based compensation expense | 6,304 |  |  | 5,084 |
Accrued expenses | 6,067 |  |  | 4,469 |
Operating lease liabilities | 3,470 |  |  | 4,384 |
Research and development capitalized | 17,007 |  |  | 9,591 |
Other deferred income tax assets | 2,705 |  |  | 2,408 |
Gross deferred income tax assets | 45,765 |  |  | 35,906 |
Less: valuation allowance | (2,545) |  |  | (1,873) |
Total net deferred income tax assets | $ | 43,220 |  |  | $ | 34,033 |
Deferred income tax liabilities |  |  |
Deferred costs | $ | (20,672) |  |  | $ | (17,696) |
Right-of-use assets | (1,884) |  |  | (2,338) |
Depreciation and amortization | (28,066) |  |  | (20,282) |
Other deferred income tax liabilities | (1,065) |  |  | (909) |
Total deferred income tax liabilities | (51,687) |  |  | (41,225) |
Net deferred income tax liabilities | $ | (8,467) |  |  | $ | (7,192) |
As of December 31, 2023, we had net operating loss carryforwards of $28.9 million for U.S. federal tax purposes, $5.6 million for state tax purposes, and $9.8 million for foreign tax purposes. If not utilized, the loss carryforwards will expire between 2024 and 2036 for federal tax purposes, between 2024 and 2043 for state tax purposes, and will not expire for foreign tax purposes. Section 382 of the U.S. Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. As of December 31, 2023, all $28.9 million of our federal net operating loss carryforwards are subject to Section 382 limitations, of which we believe $6.5 million will expire unused due to Section 382 limitations. Accordingly, our deferred income tax assets are reported net of the Section 382 limitations. We are subject to income taxes for U.S. federal and various state and international jurisdictions. We are generally subject to U.S. federal and state tax examinations for most prior tax years due to our net operating loss and R&D credit carryforwards and the utilization of the carryforwards in years still open under statute.

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