INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Pretax Income (Loss) before Income Tax, Domestic and Foreign

The components of pretax income (loss) for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
United States	$	16,285	$	(65,256)	$	60,875
International	(59,711)		(126,714)		27,150
Income (loss) before provision (benefit) for income taxes	$	(43,426)	$	(191,970)	$	88,025

Schedule of Components of Income Tax Expense (Benefit)

The Provision (benefit) for income taxes for the years ended December 31, 2023, 2022 and 2021 consisted of the following components (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current taxes:
U.S. federal	$	1,305	$	161	$	2,354
State	2,094		704		1,629
International	4,374		(7,554)		(2,321)
Total current taxes	7,773		(6,689)		1,662
Deferred taxes:
U.S. federal	35		31,132		(15,254)
State	106		20,307		(16,864)
International	1,594		(2,340)		(1,867)
Total deferred taxes	1,735		49,099		(33,985)
Provision (benefit) for income taxes	$	9,508	$	42,410	$	(32,323)

Schedule of Effective Income Tax Rate Reconciliation

The items accounting for differences between the income tax provision (benefit) computed at the U.S. federal statutory rate and the Provision (benefit) for income taxes for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
U.S. federal income tax provision (benefit) at statutory rate	$	(9,120)	$	(40,314)	$	18,485
Foreign income and losses taxed at different rates (1)	6,842		9,035		5,000
State income taxes, net of federal benefits, and state tax credits	3,709		4,133		4,897
Change in valuation allowances	87,993		64,328		(50,695)
Effect of income tax rate changes on deferred items	(104)		443		815
Adjustments related to uncertain tax positions	(5,117)		(13,062)		2,588
Non-deductible stock-based compensation expense	1,728		2,191		2,727
Tax (windfalls)/shortfalls on stock-based compensation awards	1,606		2,741		(1,762)
Federal research and development credits, net of adjustments	—		(812)		(396)
Forgiveness of intercompany liabilities	(43)		1,468		(62)
Tax attribute expiration	—		5,519		—
Asset impairments	(82,988)		7,213		—
Observable price change on an other equity investment	—		—		(17,955)
Non-deductible or non-taxable items	5,002		(473)		4,035
Provision (benefit) for income taxes	$	9,508	$	42,410	$	(32,323)

(1)Tax rates in foreign jurisdictions were generally lower than the U.S. federal statutory rate through December 31, 2023. This resulted in an adverse impact to the Provision (benefit) for income taxes in this rate reconciliation for the years ended December 31, 2023, 2022 and 2021 prior to the impact of valuation allowances, due to the net pretax losses from operations in certain foreign jurisdictions with lower tax rates.

Schedule of Deferred Tax Assets and Liabilities

The deferred income tax assets and liabilities consisted of the following components as of December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Accrued expenses and other liabilities	$	33,517	$	37,397
Operating lease obligation	—		5,602
Stock-based compensation	2,153		3,886
Net operating loss and tax credit carryforwards (1)	217,560		135,743
Property, equipment and software, net	8,462		—
Intangible assets, net	20,586		19,139
Right-of-use assets	1,238		—
Investments	26,350		20,360
Convertible senior notes	3,353		4,638
Unrealized foreign currency exchange losses	955		—
Capitalized research and development costs	12,645		9,994
Other	171		312
Total deferred tax assets	326,990		237,071
Less: Valuation allowances	(296,129)		(204,462)
Deferred tax assets, net of valuation allowance	30,861		32,609
Deferred tax liabilities:
Prepaid expenses and other assets	(11,399)		(11,983)
Operating lease obligation	(1,417)		—
Property, equipment and software, net	—		(1,470)
Right-of-use assets	—		(679)
Deferred revenue	(8,931)		(8,027)
Total deferred tax liabilities	(21,747)		(22,159)
Net deferred tax asset (liability)	$	9,114	$	10,450

(1)Includes $83.0 million of tax losses recorded in 2023 due to an impairment of investment in subsidiaries. An offsetting valuation allowance was recorded in 2023.

Schedule of Unrecognized Tax Benefits

The following table summarizes activity related to our gross unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Beginning Balance	$	39,172	$	49,502	$	48,960
Increases related to prior year tax positions	—		—		5,105
Decreases related to prior year tax positions	—		(124)		(3,138)
Increases related to current year tax positions	790		3,028		1,887
Decreases based on settlements with taxing authorities	—		(109)		—
Decreases due to lapse of statute limitations	(6,743)		(12,410)		(2,530)
Foreign currency translation	380		(715)		(782)
Ending Balance	$	33,599	$	39,172	$	49,502