Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Current:
Federal	$	(29,040)	$	(42,698)	$	8,435
State	(8,179)		(12,184)		248
Foreign	(16,940)		(16,066)		(15,931)
Total current	(54,159)		(70,948)		(7,248)
Deferred:
Federal	20,817		12,667		17,132
State	7,177		(1,577)		5,044
Foreign	2,023		1,901		(729)
Total deferred	30,017		12,991		21,447
Income tax (expense) benefit from continuing operations	$	(24,142)	$	(57,957)	$	14,199

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,
	2023		2022		2021
Statutory tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net	6.5		5.0		(1.3)
Foreign rate differential	3.1		1.0		(0.3)
Foreign income inclusion	6.0		5.4		0.7
Foreign tax credit	(4.7)		(5.1)		(0.8)
Reserve for uncertain tax positions	(5.9)		(3.2)		(2.4)
Valuation allowance	—		—		(1.7)
Impact on deferred taxes of enacted tax law and rate changes	0.6		1.4		(0.5)
Tax credits and incentives	(8.4)		(5.0)		(1.5)
Impairment of goodwill	16.0		—		—
Mark-to market on investment in Consensus	—		22.1		(18.0)
Return to provision adjustments	(5.1)		1.1		0.5
Executive compensation	2.4		1.5		0.7
Other	0.7		(1.0)		(0.4)
Effective tax rates	32.2	%	44.2	%	(4.0)	%

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,
	2023		2022
Deferred tax assets:
Net operating loss and other carryforwards	$	15,762	$	19,513
Tax credit carryforwards	4,743		4,222
Accrued expenses	14,629		10,702
Allowance for bad debt	2,003		1,445
Share-based compensation expense	6,097		3,885
Operating lease liabilities	6,320		16,756
Basis difference in fixed assets	22,191		14,642
Deferred revenue	2,420		2,994
State taxes	1,974		4,447
Other	2,468		3,920
	78,607		82,526
Less: valuation allowance	(1,720)		(1,699)
Total deferred tax assets	$	76,887	$	80,827
Deferred tax liabilities:
Operating lease right-of-use assets	(4,618)		(14,008)
Basis difference in intangible assets	(86,712)		(101,797)
Unrealized gains on investments	(13,512)		(24,123)
Prepaid insurance	(2,835)		(2,744)
Other	(5,982)		(8,639)
Total deferred tax liabilities	(113,659)		(151,311)
Net deferred tax liabilities	$	(36,772)	$	(70,484)

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,
	2023		2022		2021
Beginning balance	$	1,699	$	1,812	$	8,262
Charges to costs and expenses	21		—		178
Write-offs and recoveries	—		(113)		(6,628)
Ending balance	$	1,720	$	1,699	$	1,812

Reconciliation of Unrecognized Tax Benefits

The aggregate changes in the balance of unrecognized tax benefits, which excludes interest and penalties, for 2023, 2022, and 2021, is as follows (in thousands):

	Year ended December 31,
	2023		2022		2021
Beginning balance	$	34,208	$	39,527	$	46,032
Increases related to tax positions during a prior year	218		—		3,448
Decreases related to tax positions taken during a prior year	(1,023)		(2,816)		(5,511)
Increases related to tax positions taken in the current year	744		819		4,675
Decreases related to expiration of statute of limitations	(4,989)		(3,322)		(9,117)
Ending balance	$	29,158	$	34,208	$	39,527