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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):
 Year Ended December 31,
 202320222021
Current expense (benefit):
Federal$(1,186)$10,097 $460 
State218 193 (22)
Foreign780 452 — 
(188)10,742 438 
Deferred expense (benefit):
Federal9,374 (3,656)(2,901)
State655 34,144 (1,685)
10,029 30,488 (4,586)
Total income tax expense (benefit)$9,841 $41,230 $(4,148)

A reconciliation of income tax expense (benefit) from continuing operations to the amount computed by applying the statutory federal income tax rate to the net income (loss) from continuing operations is summarized as follows (in thousands):
 
 Year Ended December 31,
 202320222021
Tax at federal statutory rate$13,448 $7,562 $15,163 
State, net of federal benefit397 264 (82)
FDII(1,037)(2,395)(637)
Rate change for changes in federal, foreign or state law342 (535)(7,963)
Change in uncertain tax positions(7,206)(158)480 
Contingent liabilities(116)15 (7,993)
Foreign tax differential on income/loss of foreign subsidiaries(38)103 (114)
Research and development credits(405)256 (1,628)
Debt repurchases— 626 — 
Subpart F income479 853 1,392 
Share-based compensation1,241 1,279 (12,080)
Provision to return adjustments2,200 2,232 (1,347)
Officer compensation844 5,869 3,239 
Change in valuation allowance(1,184)24,799 11,245 
Other876 460 (3,823)
$9,841 $41,230 $(4,148)

We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. Significant components of our deferred tax assets and liabilities as of December 31, 2023 and 2022 are shown below. We assess the positive and negative evidence to determine if sufficient future taxable income will be generated to use the existing deferred tax assets. Our evaluation of evidence resulted in management concluding that the majority of our deferred tax assets will be realized. However, we maintain a valuation allowance to offset certain net deferred tax assets as management believes realization of such assets are uncertain as of December 31, 2023, 2022 and 2021. The valuation allowance amount in connection with the deferred taxes decreased $1.2 million in 2023, increased $24.8 million in 2022 and increased $11.2 million in 2021.
We offset all deferred tax assets and liabilities by jurisdiction, as well as any related valuation allowance, and present them on our consolidated balance sheet as a non-current deferred income tax asset or liability (as applicable). Deferred tax assets
(liabilities) are comprised of the following:
 December 31,
 20232022
 (in thousands)
Deferred tax assets:
Net operating loss carryforwards$45,702 $53,960 
Research credit carryforwards26,611 26,309 
Capitalized R&D4,550 4,693 
Stock compensation11,886 11,158 
Other15,012 14,849 
103,761 110,969 
Valuation allowance for deferred tax assets(57,699)(57,472)
Net deferred tax assets$46,062 $53,497 
Deferred tax liabilities:
Identified intangibles(66,966)(64,696)
     Other(10,504)(10,886)
Net deferred tax liabilities$(77,470)$(75,582)
Deferred income taxes, net$(31,408)$(22,085)

As of December 31, 2023, we had federal net operating loss carryforwards set to expire through 2037 of $48.0 million and $165.1 million of state net operating loss carryforwards that begin to expire in 2028. We also have $8.5 million of federal research and development credit carryforwards, which expire through 2040. We have $29.4 million of California research and development credit carryforwards that have no expiration date. In addition, we have approximately $95.5 million of non-U.S. net operating loss carryovers and approximately $16.5 million of non-U.S. capital loss carryovers that have no expiration date.
As of December 31, 2022, we had federal net operating loss carryforwards set to expire through 2037 of $81.1 million and $168.3 million of state net operating loss carryforwards that begin to expire in 2028. We also had $8.5 million of federal research and development credit carryforwards, which expire through 2040. We had $29.0 million of California research and development credit carryforwards that have no expiration date. In addition, we had approximately $96.1 million of non-U.S. net operating loss carryovers and approximately $15.6 million of non-U.S. capital loss carryovers that have no expiration date.
Pursuant to Section 382 and 383 of the Internal Revenue Code of 1986, as amended, utilization of our net operating losses and credits may be subject to annual limitations in the event of any significant future changes in its ownership structure. These annual limitations may result in the expiration of net operating losses and credits prior to utilization. The deferred tax assets as of December 31, 2023 are net of any previous limitations due to Section 382 and 383.
We account for income taxes by evaluating a probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Our remaining liabilities for uncertain tax positions are presented net of the deferred tax asset balances on the accompanying consolidated balance sheet.
A reconciliation of the amount of unrecognized tax benefits at December 31, 2023, 2022 and 2021 is as follows (in thousands):
December 31,
202320222021
Balance at beginning of year$29,096 $29,550 $31,619 
     Additions based on tax positions related to the current year47 58 252 
     Additions for tax positions of prior years3 — 751 
     Reductions for tax positions of prior years(6,783)(512)(3,072)
Balance at end of year$22,363 $29,096 $29,550 

Included in the balance of unrecognized tax benefits at December 31, 2023 is $20.6 million of tax benefits that, if recognized would impact the effective rate. There are no positions for which it is reasonably possible that the uncertain tax benefit will significantly increase or decrease within twelve months.
We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2023 and December 31, 2022, we recognized an immaterial amount of interest and penalties. We file income tax returns in the United States, various state jurisdictions, and United Kingdom with varying statutes of limitations. The federal statute of limitation remains open for the 2020 tax year to the present. The state income tax returns generally remain open for the 2019 tax year through the present. Net operating loss and research credit carryforwards arising prior to these years are also open to examination if and when utilized. The Company's 2019 and 2020 California tax returns are under examination by the California Franchise Tax Board. The Company does not anticipate that the examination will result in a material adjustment to its financial statements. No other income tax returns are currently under examination. We believe our reserve for unrecognized tax benefits and contingent tax issues is adequate with respect to all open years.