XML 64 R44.htm IDEA: XBRL DOCUMENT v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Provision for Income Tax
The continuing operations income tax (expense) benefit consisted of the following (in thousands):
 Year ended December 31,
 20222021 2020
Current:
Federal$(42,698)$8,435 $(15,112)
State(12,184)248 (4,300)
Foreign(16,066)(15,931)(18,631)
Total current(70,948)(7,248)(38,043)
 
Deferred:   
Federal12,667 17,132 6,022 
State(1,577)5,044 67 
Foreign1,901 (729)(6,396)
Total deferred12,991 21,447 (307)
Income tax (expense) benefit from continuing operations$(57,957)$14,199 $(38,350)
Reconciliation of Statutory Federal Income Tax Rate with Effective Income Tax Rate
A reconciliation of the statutory federal income tax rate with the Company’s continuing operations effective income tax rate is as follows:
 Year ended December 31,
 202220212020
Statutory tax rate21.0 %21.0 %21.0 %
State income taxes, net5.0 (1.3)1.8 
Foreign rate differential1.0 (0.3)2.8 
Foreign income inclusion5.4 0.7 5.2 
Foreign tax credit(5.1)(0.8)(4.3)
Reserve for uncertain tax positions(3.2)(2.4)11.5 
Valuation allowance— (1.7)9.9 
Impact on deferred taxes of enacted tax law and rate changes1.4 (0.5)3.3 
Tax credits and incentives(5.0)(1.5)(7.2)
Mark-to market on investment in Consensus22.1 (18.0)— 
Return to provision adjustments1.1 0.5 2.4 
Executive compensation1.5 0.7 2.7 
Other(1.0)(0.4)(0.2)
Effective tax rates44.2 %(4.0)%48.9 %
Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities result from differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Temporary differences and carryforwards which give rise to deferred tax assets and liabilities from continuing operations are as follows (in thousands):
 Years Ended December 31,
 2022 2021
Deferred tax assets:
Net operating loss and other carryforwards$19,513 $28,393 
Tax credit carryforwards4,222 2,801 
Accrued expenses10,702 12,548 
Allowance for bad debt1,445 2,116 
Share-based compensation expense3,885 3,545 
Operating lease liabilities16,756 21,771 
Basis difference in fixed assets14,642 — 
Deferred revenue2,994 4,331 
State taxes4,447 3,771 
Other3,920 4,351 
 82,526 83,627 
Less: valuation allowance(1,699)(1,812)
Total deferred tax assets$80,827 $81,815 
  
Deferred tax liabilities: 
Basis difference in property and equipment$— $(8,337)
Operating lease right-of-use assets(14,008)(16,696)
Basis difference in intangible assets(101,797)(117,244)
Unrealized gains on investments(24,123)(11,291)
Prepaid insurance(2,744)(3,121)
Convertible debt— (21,972)
Other(8,639)(6,219)
Total deferred tax liabilities(151,311)(184,880)
Net deferred tax liabilities$(70,484)$(103,065)
Reconciliation of Unrecognized Tax Benefits
The aggregate changes in the balance of unrecognized tax benefits, which excludes interest and penalties, for 2022, 2021 and 2020, is as follows (in thousands):
Year ended December 31,
202220212020
Beginning balance $39,527 $46,032 $43,687 
Increases related to tax positions during a prior year— 3,448 3,953 
Decreases related to tax positions taken during a prior year(2,816)(5,511)(244)
Increases related to tax positions taken in the current year819 4,675 4,264 
Settlements— — (5,628)
Decreases related to expiration of statute of limitations(3,322)(9,117)— 
Ending balance$34,208 $39,527 $46,032 
Summary of Valuation Allowance on Deferred Tax Assets From Continuing Operations
The rollforward of the valuation allowance on the deferred tax assets from continuing operations is as follows (in thousands):
Year ended December 31,
202220212020
Beginning balance$1,812 $8,262 $563 
Charges to costs and expenses
— 178 9,456 
Write-offs and recoveries(113)(6,628)(1,757)
Ending balance$1,699 $1,812 $8,262