INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES [ABSTRACT]

Sources of Pre-Tax Accounting Income

The sources of pre-tax operating income are as follows (in thousands):

	Year Ended December 31,
	2021		2020		2019
Domestic	$	108,160	$	129,620	$	39,864
Foreign		99,724		40,648		70,547
Total	$	207,884	$	170,268	$	110,411

Components of Income Tax Expense (Benefit)

The components of the Company’s Provision for (benefit from) income taxes are as follows (in thousands):

	Year Ended December 31,
	2021		2020		2019
Current provision for (benefit from)
Federal	$	20,697	$	22,763	$	5,289
State		8,006		9,871		2,826
Foreign		20,161		13,496		18,938
Total current provision for (benefit from)		48,864		46,130		27,053
Deferred provision for (benefit from)
Federal		(7,017)		(2,390)		2,515
State		(402)		(254)		118
Foreign		8,250		(2,549)		(4,009)
Total deferred provision for (benefit from)		831		(5,193)		(1,376)
Total provision for (benefit from) income taxes	$	49,695	$	40,937	$	25,677

Effective Income Tax Rate Reconciliation Table

The following reconciles the Company’s effective tax rate to the federal statutory rate (in thousands):

	Year Ended December 31,
	2021		2020		2019
Income tax per U.S. federal statutory rate (21%, 21%, 21%)	$	43,655	$	35,756	$	23,186
State income taxes, net of federal deduction		4,588		6,923		3,144
Change in valuation allowances		12,567		3,903		9,832
Foreign income taxes at different rates than the U.S.		(1,416)		(783)		(3,356)
Foreign withholding taxes		(93)		106		600
Losses in international markets without tax benefits		—		(1,656)		(2,651)
Nondeductible compensation under Section 162(m)		1,494		656		668
Taxes related to equity compensation		(4,282)		(587)		(976)
Liabilities for uncertain tax positions		(790)		2,882		661
Permanent difference related to foreign exchange gains		3,362		(71)		36
(Income) losses of foreign branch operations		(187)		(10)		55
Non-taxable earnings of noncontrolling interest		(3,085)		(1,964)		(1,294)
Foreign dividend less foreign tax credits		(1,142)		(1,723)		(1,681)
Decrease (increase) to deferred tax asset - change in tax rate		—		(48)		(2,848)
State and Federal income tax credits and NOL's		(4,531)		(3,918)		(1,176)
Foreign earnings taxed currently in U.S.		1,930		1,936		2,172
Taxes related to prior year filings		(1,192)		(1,718)		(1,643)
Taxes related to acquisition accounting		—		1,317		978
Other		(1,183)		(64)		(30)
Income tax per effective tax rate	$	49,695	$	40,937	$	25,677
Effective tax rate percentage		23.9%		24.0%		23.3%

Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred income tax assets and liabilities are summarized as follows (in thousands):

	Year Ended December 31,
	2021		2020
Deferred tax assets, gross
Accrued workers compensation, deferred compensation and employee benefits	$	8,441	$	8,574
Allowance for credit losses, insurance and other accruals		4,767		4,463
Amortization of deferred lease liabilities		15,816		20,352
Net operating losses		18,006		20,508
Equity compensation		2,302		1,660
Customer acquisition and deferred revenue accruals		20,069		6,868
Federal and state tax credits, net		2,759		2,383
Unrealized losses on derivatives		22		1,187
Impairment of equity investment		4,064		4,064
Partnership Investment		106		526
Other		5,052		5,444
Total deferred tax assets, gross		81,404		76,029
Valuation allowances		(29,620)		(18,697)
Total deferred tax assets, net		51,784		57,332
Deferred tax liabilities
Depreciation and amortization		(10,291)		(10,734)
Unrealized gain on derivatives		—		(2,959)
Contract acquisition costs		(1,831)		(3,182)
Intangible assets		(21,202)		(15,880)
Operating lease assets		(12,481)		(16,763)
Other		(184)		(480)
Total deferred tax liabilities		(45,989)		(49,998)
Net deferred tax assets	$	5,795	$	7,334

Valuation Allowance Rollforward

Activity in the Company’s valuation allowance accounts consists of the following (in thousands):

	Year Ended December 31,
	2021		2020		2019
Beginning balance	$	18,697	$	17,051	$	10,867
Additions of deferred income tax expense		14,660		4,650		7,373
Reductions of deferred income tax expense		(3,737)		(3,004)		(1,189)
Ending balance	$	29,620	$	18,697	$	17,051

Expiration of Net Operating Loss Carryforwards

As of December 31, 2021, after consideration of all tax loss carry back opportunities, the Company had tax affected tax loss carry forwards worldwide expiring as follows (in thousands):

2022	$	—
2023		94
2024		125
2025		50
After 2025		8,411
No expiration		9,326
Total	$	18,006

Reserve for Uncertain Tax Positions Rollforward

The tabular reconciliation of the reserve for uncertain tax benefits on a gross basis without interest for the three years ended December 31, 2021 is presented below (in thousands):

Balance as of December 31, 2018	$	4,784
Additions for current year tax positions		—
Reductions in prior year tax positions		—
Balance as of December 31, 2019		4,784
Additions for current year tax positions		2,725
Reductions in prior year tax positions		—
Balance as of December 31, 2020		7,509
Additions for current year tax positions		220
Reductions in prior year tax positions		(826)
Balance as of December 31, 2021	$	6,903

Jurisdictions Open to Income Tax Examination

Tax Jurisdiction	Tax Year Ended
United States	2017 to Present
Australia	2017 to Present
India	2017 to Present
Canada	2017 to Present
Mexico	2016 to Present
Philippines	2018 to Present