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Income Taxes
 12 Months Ended
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)202320222021
Current
Federal$20,168 $13,881 $1,559 
State4,221 4,149 1,890 
Foreign2,103 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,
202320222021
U.S. statutory federal income tax rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from:
U.S. state income taxes, net of federal tax effect5.1 4.6 4.5 
Tax impact of stock activity(5.6)(4.7)(12.8)
Nondeductible compensation4.7 3.5 5.0 
Research and development credit(1.5)(1.5)(1.1)
Foreign derived intangible income(1.3)(1.4)(1.3)
Other0.7 1.2 1.4 
Effective tax rate23.1 %22.7 %16.7 %
The significant components of our deferred income tax assets and liabilities were as follows:
December 31,
(in thousands)20232022
Deferred income tax assets
Net operating loss and credit carryforwards$10,212 $9,970 
Stock-based compensation expense6,304 5,084 
Accrued expenses6,067 4,469 
Operating lease liabilities3,470 4,384 
Research and development capitalized17,007 9,591 
Other deferred income tax assets2,705 2,408 
Gross deferred income tax assets45,765 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.