INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Domestic	$	(39,871)	$	52,887	$	108,160
Foreign		80,595		91,561		99,724
Total	$	40,724	$	144,448	$	207,884

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,
	2023		2022		2021
Current provision for (benefit from)
Federal	$	3,625	$	10,816	$	20,697
State		1,893		5,245		8,006
Foreign		24,470		22,055		20,161
Total current provision for (benefit from)		29,988		38,116		48,864
Deferred provision for (benefit from)
Federal		(14,357)		(3,128)		(7,017)
State		(848)		(192)		(402)
Foreign		7,677		(7,681)		8,250
Total deferred provision for (benefit from)		(7,528)		(11,001)		831
Total provision for (benefit from) income taxes	$	22,460	$	27,115	$	49,695

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,
	2023		2022		2021
Income tax per U.S. federal statutory rate (21%, 21%, 21%)	$	8,552	$	30,334	$	43,655
State income taxes, net of federal deduction		(1,355)		2,717		4,588
Change in valuation allowances		14,917		(3,278)		12,567
Foreign income taxes at different rates than the U.S.		208		1,202		(1,416)
Taxes related to compensation		1,542		(66)		(2,788)
Liabilities for uncertain tax positions		1,759		(1,435)		(790)
Impacts of foreign branch operations		(283)		2,315		(187)
Non-taxable earnings of noncontrolling interest		(1,508)		(2,638)		(3,085)
Foreign dividend less foreign tax credits		(1,294)		(1,616)		(1,142)
State and Federal income tax credits and NOL's		(4,611)		(4,604)		(4,531)
Foreign earnings taxed currently in U.S.		2,409		2,978		1,930
Taxes related to prior year filings		675		(432)		(1,192)
Other		1,449		1,638		2,086
Income tax per effective tax rate	$	22,460	$	27,115	$	49,695
Effective tax rate percentage		55.2%		18.8%		23.9%

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,
	2023		2022
Deferred tax assets, gross
Accrued compensation and employee benefits	$	12,687	$	11,627
Allowance for credit losses, insurance and other accruals		7,855		4,109
Amortization of deferred lease liabilities		21,683		18,475
Net operating losses		22,241		18,312
Customer acquisition and deferred revenue accruals		15,991		18,749
Federal and state tax credits, net		3,456		3,247
Investments		7,626		1,149
Depreciation and amortization		19,570		7,896
Unremitted foreign earnings		13,412		—
Interest expense		14,957		—
Other		630		3,931
Total deferred tax assets, gross		140,108		87,495
Valuation allowances		(39,902)		(24,944)
Total deferred tax assets, net		100,206		62,551
Deferred tax liabilities
Intangible assets		(41,447)		(28,848)
Operating lease assets		(18,362)		(15,594)
Other		(5,383)		(3,254)
Total deferred tax liabilities		(65,192)		(47,696)
Net deferred tax assets	$	35,014	$	14,855

Valuation Allowance Rollforward

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

	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	24,944	$	29,620	$	18,697
Additions of deferred income tax expense		18,410		2,248		14,660
Reductions of deferred income tax expense		(3,452)		(6,924)		(3,737)
Ending balance	$	39,902	$	24,944	$	29,620

Expiration of Net Operating Loss Carryforwards

As of December 31, 2023, after consideration of all tax loss carry back opportunities, the Company had tax affected tax loss carry forwards worldwide expiring as follows (in thousands):

2024	$	10
2025		245
2026		971
2027		375
After 2027		9,621
No expiration		11,024
Total	$	22,246

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, 2023 is presented below (in thousands):

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
Additions for current year tax positions		143
Reductions in prior year tax positions		(479)
Balance as of December 31, 2022		6,567
Additions for current year tax positions		212
Reductions in prior year tax positions		(203)
Balance as of December 31, 2023	$	6,576

Jurisdictions Open to Income Tax Examination

Tax Jurisdiction	Tax Year Ended
United States	2017 - Present
Australia	2019 - Present
India	2017 - Present
Canada	2019 - Present
Mexico	2018 - Present
Philippines	2019 - Present