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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax expense (benefit) consists of the following:
Years Ended December 31,
(in millions)202320222021
Current:
Federal$3.4 $(0.5)$(1.9)
State1.8 1.9 3.6 
Foreign0.2 0.5 0.1 
Total current5.4 1.9 1.8 
Deferred:
Federal(51.8)(25.8)(33.7)
State(5.2)(4.8)5.1 
Foreign0.1 (2.9)0.1 
Change in valuation allowance52.6 3.0 (3.2)
Total deferred(4.3)(30.5)(31.7)
Total income tax expense (benefit)
$1.1 $(28.6)$(29.9)
Loss before income taxes consists of the following:
Years Ended December 31,
(in millions)202320222021
United States$(263.2)$(141.3)$(53.8)
Foreign1.0 0.7 (3.3)
Total$(262.2)$(140.6)$(57.1)
The differences between income taxes at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations were as follows:
Years Ended December 31,
(in millions)202320222021
Federal income tax expense at the statutory rate$(54.9)21.0 %$(29.5)21.0 %$(12.0)21.0 %
State income taxes, net of federal benefit(4.1)1.6 %(3.3)2.3 %(1.8)3.2 %
Research and development credits(1.6)0.6 %(3.5)2.5 %2.5 (4.4)%
Uncertain tax positions3.7 (1.4)%0.6 (0.4)%(3.0)5.3 %
Incentive stock option and employee stock purchase plan expense1.2 (0.5)%2.5 (1.8)%0.7 (1.2)%
Foreign rate differential(0.4)0.2 %— — %0.5 (0.9)%
Change in valuation allowance52.6 (20.1)%2.6 (1.8)%(3.2)5.6 %
CARES Act— — %— — %2.7 (4.7)%
Non-deductible meals and entertainment— — %— — %0.1 (0.2)%
Non-deductible officer compensation3.0 (1.1)%3.5 (2.5)%3.3 (5.8)%
Non-deductible legal settlement— — %— — %2.5 (4.5)%
Acquisitions, dispositions, and contingent consideration0.1 — %(0.1)0.1 %(23.0)40.3 %
Other, net1.5 (0.7)%(1.4)0.9 %0.8 (1.4)%
Total income tax expense (benefit)
$1.1 -0.4 %$(28.6)20.3 %$(29.9)52.3 %
The significant components of the Company’s deferred tax assets and liabilities were comprised of the following:
December 31,
(in millions)20232022
Deferred tax assets:
Net operating loss carryforwards$77.1 $66.6 
Stock compensation expense5.0 3.6 
Research and development credits20.8 19.9 
Lease liability28.0 35.2 
Section 174 capitalized costs38.4 21.2 
Accrued expenses and liabilities22.5 10.8 
Other, net3.2 3.6 
Total gross deferred tax assets195.0 160.9 
Less valuation allowance(95.0)(42.4)
Total deferred tax assets100.0 118.5 
Deferred tax liabilities:
Intangible assets84.2 93.8 
Lease right-of-use assets15.5 25.4 
Property, plant and equipment1.9 2.8 
Total deferred tax liabilities101.6 122.0 
Net deferred tax liability$(1.6)$(3.5)
The Tax Cuts and Jobs Act (TCJA), passed in 2017, amended Section 174 of the Internal Revenue Code to require that specific research and experimental (R&E) expenditures be capitalized and amortized over five years for U.S. R&E expenditures or 15 years for non-U.S. R&E expenditures beginning in the Company’s fiscal year ended December 31, 2022. Although Congress has considered legislation that would defer, modify or repeal the capitalization and amortization requirement, there is no assurance that the provision will be deferred, repealed or otherwise modified. If the requirement is not modified, the Company may be required to utilize some of its federal and state tax attributes and there may be increases to state cash taxes or tax expense.
The Company has incurred a cumulative three-year loss. Pursuant to ASC 740, Income Taxes ("ASC 740"), the negative evidence of a cumulative loss may be difficult to overcome. Due to cumulative book losses and the lack of sufficient positive evidence, the Company has applied a valuation allowance to all applicable deferred tax assets, leaving a remaining deferred tax liability balance of $1.6 million.
At December 31, 2023, the Company had the following net operating loss and research credit carryforwards (tax effected), with their respective expiration periods. Certain carryforwards are subject to the limitations of Section 382 and 383 of the Internal Revenue Code as indicated (in millions):
CarryforwardsAmountSubject to
sections 382, 383		Expires
beginning in year		Through
Federal net operating loss$38.5 Yes2033Indefinite
Federal capital loss13.8 No 20262028
Utah net operating loss0.8 No2024Indefinite
California net operating loss4.4 Yes20292043
Other state net operating loss8.6 YesVariousVarious
Foreign net operating losses (various jurisdictions)10.8 NoVariousVarious
Federal research credit10.5 Yes20272043
Utah research credit5.4 No20242037
California research credit4.8 NoIndefiniteIndefinite
Due to the cumulative losses that have been incurred to date in foreign operations, the changes of the Tax Cuts and Jobs Act and the election to treat its foreign subsidiaries as disregarded entities, no deferred taxes related to the Company’s foreign operations have been recorded. For those foreign entities for which an election has been made to be treated as disregarded for U.S. tax purposes, the appropriate U.S. jurisdiction deferred tax assets and liabilities have been recorded. 
The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement criteria as set forth in ASC 740. As of December 31, 2023, the Company had net unrecognized tax benefits of $48.1 million. The Company’s gross unrecognized tax benefits as of the years ended December 31, 2023, 2022, and 2021 and the changes in those balances are as follows: 
Years Ended December 31,
(in millions)202320222021
Unrecognized tax benefits at the beginning of period$43.9 $32.1 $37.6 
Gross increases - current year tax positions0.8 12.9 1.4 
Gross increases - prior year tax positions3.6 1.6 1.1 
Gross decreases - prior year tax positions(0.2)(2.0)(2.8)
Gross decreases - settlements— (0.7)(5.1)
Gross decreases - statute lapse— — (0.1)
Unrecognized tax benefits at end of year$48.1 $43.9 $32.1 
Interest and penalties in year-end balance$6.4 $4.1 $3.3 
In 2022, the Company filed a U.S. federal tax return taking an uncertain tax position that was not recorded as a benefit or deferred tax asset in the financial statements but for which the $12.0 million unrecognized tax benefit has been included in the table above. Interest and penalties related to uncertain tax positions are included as a component of Income tax benefit and all other interest and penalties are included as a component of Other income (expense) in the Consolidated Statements of Operations. For the years ended December 31, 2023 and December 31, 2022, $30.2 million and $26.8 million of the unrecognized tax benefits, if recognized, would affect the effective tax rate, respectively.
The Company files U.S. federal, foreign and state income tax returns in jurisdictions with various statutes of limitations. The Company is currently under audit by Switzerland for the years ended June 30, 2017 through December 31, 2021 Annual tax provisions include amounts considered necessary to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues may differ materially from the amount accrued.