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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income (loss) from continuing operations before income taxes consists of the following components:
(In thousands)Years Ended December 31,
202320222021
Domestic$239,061 $(52,458)$292,364 
Foreign56,945 22,506 81,868 
Total$296,006 $(29,952)$374,232 
Income tax expense (benefit) attributable to continuing operations consists of the following components:
(In thousands)Years Ended December 31,
202320222021
Current expense (benefit):
Federal$9,260 $(6,310)$19,751 
State12,624 2,141 10,360 
Foreign23,517 18,933 25,990 
45,401 14,764 56,101 
Deferred expense (benefit):
Federal46,831 (43,707)24,923 
State1,034 (3,633)2,715 
Foreign1,871 (3,349)6,372 
49,736 (50,689)34,010 
Tax expense (benefit) relating to uncertain tax positions, including accrued interest(531)(5,055)4,282 
Income tax expense (benefit)$94,606 $(40,980)$94,393 

A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows:
(In thousands)Years Ended December 31,
202320222021
U.S. federal statutory income tax rate21 %21 %21 %
State and local income taxes, net of federal benefit (a)4 20 3 
Effect of foreign operations (b)1 (11)(1)
Non-deductible compensation expenses (c)2 (35)2 
Excess tax deficiencies related to share-based compensation1 (5)(1)
Changes in the valuation allowance (d)3 (109)3 
Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits— 16 1 
Deferral of investment tax credit benefit— 4 (1)
Deemed liquidation - controlled foreign corporation (a)— 235 — 
Other— 1 (2)
Effective income tax rate32 %137 %25 %
(a)    In the year ended December 31, 2022, the deemed liquidation – controlled foreign corporation is a result of a capital loss sustained related to a change in the entity classification of a wholly owned controlled foreign corporation. This also impacts state and local income taxes.
(b)    In the years ended December 31, 2023, 2022 and 2021, the effect of foreign operations relates to the income tax benefit or expense as a result of certain entities operating in foreign jurisdictions.
(c)    In the year ended December 31, 2022, the increase in nondeductible compensation expense is primarily due to contractual severance as a result of employee separations.
(d)    In the year ended December 31, 2023, the increase in valuation allowance relates primarily to the generation of excess foreign tax credits. In the year ended December 31, 2022, the increase in valuation allowance relates primarily to the generation of excess capital losses and foreign tax credits. In the year ended December 31, 2021, the increase in valuation allowance relates primarily to the generation of excess foreign tax credits and a reduction in the expected utilization of interest expense carryforwards as a result of a tax assessment.
The tax effects of temporary differences that give rise to significant components of deferred tax assets or liabilities at December 31, 2023 and 2022 are as follows:
(In thousands)December 31,
20232022
Deferred Tax Asset (Liability)
NOLs and tax credit carry-forwards$100,137 $101,793 
Compensation and benefit plans19,974 24,451 
Allowance for doubtful accounts1,486 1,280 
Fixed assets and intangible assets31,816 35,678 
Accrued interest expense20,985 30,346 
Unused capital losses22,396 60,226 
Other liabilities24,769 21,618 
Deferred tax asset221,563 275,392 
Valuation allowance(135,742)(132,164)
Net deferred tax asset85,821 143,228 
Prepaid liabilities(639)(570)
Fixed assets and intangible assets(85,282)(89,671)
Investments in partnerships(124,164)(128,434)
Other assets(24,663)(23,577)
Deferred tax liability(234,748)(242,252)
Total net deferred tax liability$(148,927)$(99,024)
 
At December 31, 2023, the Company had investment tax credit carry-forwards of approximately $80.0 million, expiring on various dates from 2032 through 2038 and foreign tax credit carryforwards of approximately $46.2 million, expiring on various dates from 2024 through 2033. The investment tax credits have been reduced by a valuation allowance of approximately $19.2 million and the foreign tax credit carryforwards have been reduced by a valuation allowance of $46.2 million as it is more likely than not that these carry forwards will not be realized. The Company had net operating loss carry forwards of approximately $328.7 million, related primarily to federal and state net operating losses acquired as a result of the purchase of the outstanding shares of RLJ Entertainment and Sentai Holdings of approximately $75.8 million and $3.8 million, respectively, as well as net operating loss carryforwards of our foreign subsidiaries. The deferred tax asset related to the federal and state net operating loss carryforward of approximately $20.0 million has expiration dates ranging from 2024 through 2043 (some are indefinite) and has been reduced by a valuation allowance of approximately $10.4 million, including $7.7 million that was recorded through goodwill as part of purchase accounting. Although the foreign net operating loss carry-forward periods range from 5 years to unlimited, the related deferred tax assets of approximately $34.8 million for these carry-forwards have been reduced by a valuation allowance of approximately $34.7 million as it is more likely than not that these carry-forwards will not be realized. The deferred tax asset related to unused capital losses and other related losses has been reduced by a valuation allowance of approximately $25.2 million as it is more likely than not that these losses will not be realized. The remainder of the valuation allowance at December 31, 2023 relates primarily to deferred tax assets attributable to temporary differences of certain foreign subsidiaries for which it is more likely than not that these deferred tax assets will not be realized.
For the year ended December 31, 2023, $0.4 million relating to amortization of tax deductible second component goodwill was realized as a reduction in tax liability (as determined on a 'with-and-without' approach).
At December 31, 2023, the liability for uncertain tax positions was $5.7 million, excluding accrued interest of $1.8 million and deferred tax assets of $1.6 million. All of such unrecognized tax benefits, if recognized, would reduce the Company's income tax expense and effective tax rate.
A reconciliation of the beginning to ending amount of the liability for uncertain tax positions (excluding related accrued interest and deferred tax benefit) is as follows:
(In thousands)
Balance at December 31, 2022$6,650 
Increases related to current year tax positions692 
Increases related to prior year tax positions91 
Decreases related to prior year tax positions(243)
Decreases due to settlements/payments(1,158)
Decreases due to lapse of statute of limitations(349)
Balance at December 31, 2023$5,683 
Interest benefit (net of the related deferred tax) of $0.2 million was recognized during the year ended December 31, 2023 and is included in income tax expense in the consolidated statement of income. At December 31, 2023 and 2022, the liability for uncertain tax positions and accrued interest are included in accrued liabilities and other liabilities in the consolidated balance sheets.
As of December 31, 2023, approximately $244.9 million of cash and cash equivalents, previously held by foreign subsidiaries, was repatriated to the United States. Our consolidated cash and cash equivalents balance of $570.6 million as of December 31, 2023 includes approximately $141.9 million held by foreign subsidiaries. Of this amount, approximately $20.0 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the repatriated amount, as well as the expected remaining amount to be repatriated, has been accrued in the current period and the Company does not expect to incur any significant, additional taxes related to the remaining balance.
The Company is currently being audited by the State and City of New York and various other states or jurisdictions, with most of the periods under examination relating to tax years 2015 and forward.