Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Domestic and Foreign Components of Income Before Provision for Income Taxes

The domestic and foreign components of income (loss) before provision for income taxes consist of the following:


	Year Ended December 31,
	2021		2020		2019
	(In thousands)
United States	$	(128,210)	$	(113,689)	$	(105,961)
Israel	1,414		2,214		2,791
United Kingdom	1,145		536		5,377
Netherlands	3,629		3,398		(465)
Australia	755		1,663		716
Germany	(6,450)		243		3,854
Other (1)	339		507		462
	$	(127,378)	$	(105,128)	$	(93,226)

——————————————

(1)Includes Bulgaria, Canada, Japan, France, India, Italy, Singapore, and Spain

Schedule of Provision For Income Taxes

The provision for income taxes consists of the following:


	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Current income taxes:
U.S. Federal	$	(22)	$	(581)	$	(452)
State and local	159		59		89
Foreign	3,698		2,408		4,415
Total current income taxes	3,835		1,886		4,052

Deferred income taxes:
U.S. Federal	(2,908)		(151)		126
State and local	20		459		135
Foreign	(3,351)		272		(1,468)
Total deferred income taxes	(6,239)		580		(1,207)
Total provision for income taxes	$	(2,404)	$	2,466	$	2,845

Schedule of Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate

The difference between the total income taxes computed at the federal statutory rate and the provision for income taxes consists of the following:


	Year Ended December 31,
	2021		2020		2019
Federal statutory rate	21.00	%	21.00	%	21.00	%
State taxes, net of federal benefit	4.83	%	4.82	%	2.95	%
Non-deductible expenses – stock based compensation	(1.73)	%	(1.21)	%	1.82	%
Global intangible low tax income inclusion	—	%	—	%	(2.29)	%
Non-deductible expenses – other	(0.54)	%	0.14	%	(0.37)	%
Non-deductible excess compensation	(2.30)	%	(5.52)	%	(1.20)	%
Foreign taxes	(0.86)	%	(3.98)	%	(1.86)	%
Valuation allowance	(26.92)	%	(30.87)	%	(26.42)	%
Stock based compensation – excess tax benefit	6.58	%	9.93	%	6.18	%
Other	1.83	%	3.34	%	(2.86)	%
Total provision	1.89	%	(2.35)	%	(3.05)	%

Schedule of Federal Deferred Tax Assets and Deferred Tax Liabilities

The effects of temporary differences and federal NOL carryforwards that give rise to significant portions of federal deferred tax assets and deferred tax liabilities as of the dates presented:


	Year Ended December 31,
	2021		2020
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	141,930	$	78,651
Foreign tax credit	1,222		1,222
R&D tax credit	1,761		—
Original issue discount	13,530		16,464
Interest	4,188		1,986
Operating lease liability	3,145		5,150
Accounts payable and accrued expenses	7,010		7,289
Non-cash compensation	13,591		7,401
Intangibles amortization	—		3,620
Allowance for doubtful accounts	1,280		954
Total deferred tax assets	187,657		122,737
Less valuation allowance	(107,061)		(55,357)
Deferred tax assets, net of valuation allowance	80,596		67,380
Deferred tax liabilities:
Property and equipment	(12,586)		(10,048)
Intangibles amortization	(15,361)		—
Goodwill amortization and contingent earn-out adjustments	(6,165)		(5,294)
Convertible notes issuance	(41,666)		(49,118)
Operating lease right of use asset	(1,833)		(2,511)
Total deferred tax liabilities	(77,611)		(66,971)
Net deferred tax assets (liabilities)	$	2,985	$	409

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Unrecognized tax benefits balance at January 1	$	3,615	$	2,053	$	1,921
Increase due to business combinations	488		—		—
Gross decrease for tax positions of prior years	—		(438)		—
Gross increase for tax positions of current years	376		2,984		584
Decrease due to expiration of statue	—		—		(452)
Decrease due to settlement	(1,562)		(984)		—
Gross unrecognized tax benefits at December 31	$	2,917	$	3,615	$	2,053