
	Years Ended December 31,
	2020		2019		2018
Current tax (provision):
Federal	$	(30,277)	$	(37,319)	$	(23,848)
State and local	(7,213)		(5,861)		(7,384)
Total current tax (provision)	(37,490)		(43,180)		(31,232)
Deferred tax benefit:
Federal	101,613		32,327		7,474
State and local	43,860		(7,209)		15,271
Total deferred tax benefit	145,473		25,118		22,745
Total benefit (provision) for income taxes	$	107,983	$	(18,062)	$	(8,487)


	Years Ended December 31,
	2020		2019		2018
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
State and local taxes, net of federal tax benefit	7.4	%	2.7	%	(6.7)	%
Change in value of indemnification asset	2.8	%	1.6	%	(3.3)	%
Non-deductible executive compensation	3.5	%	—	%	—	%
Stock compensation	4.4	%	—	%	—	%
Non-deductible transaction costs	4.9	%	0.8	%	—	%
Change in valuation allowance	(256.0)	%	1.9	%	(2.1)	%
Change in unrecognized tax benefits (including FBOS)	(48.7)	%	5.3	%	2.7	%
Other, net	(0.3)	%	0.4	%	2.4	%
Effective tax rate	(261.0)	%	33.7	%	14.0	%

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted and signed into law. The CARES Act includes several provisions for corporations including increasing the amount of deductible interest, allowing companies to carryback certain Net Operating Losses (“NOLs”) and increasing the amount of NOLs that corporations can use to offset income. The CARES Act did not materially affect the Company's year-to-date income tax provision, deferred tax assets and liabilities, and related taxes payable. Further, on December 27, 2020, the Consolidated Appropriations Act, 2021, (“CAA”) was enacted and signed into law. The CAA includes several provisions for corporations including tax and direct spending relief for businesses and individuals affected by the coronavirus pandemic; and extends dozens of expiring tax deductions, credits, and incentives. The CAA did not materially affect the Company's year-to-date income tax provision, deferred tax assets and liabilities, and related taxes payable.

Deferred taxes arise because of differences in the book and tax basis of certain assets and liabilities. A valuation allowance is recognized to reduce gross deferred tax assets to the amount that will more likely than not be realized.


	Years Ended December 31,
	2020		2019
Deferred tax assets
Allowance for doubtful accounts	$	9,979	$	9,098
Deferred and other compensation	10,636		18,165
Capital investments	3,790		3,780
Debt, capitalized fees, and other interest	2,291		4,644
Pension and other post-employment benefits	51,231		52,219
Operating lease liability	7,539		9,736
Reserve for facility exit costs	7,053		1,875
Net operating loss and credit carryforwards	28,611		27,019
Fixed assets and capitalized software	420		130
Non-compete and other agreements	46,213		30,250
Goodwill and other intangible assets	8,335		—
Other, net	8,566		11,239
Total deferred tax assets	184,664		168,155
Valuation allowance	(24,307)		(126,321)
Net deferred tax assets	$	160,357	$	41,834

Deferred tax liabilities
Goodwill and other intangibles	—		(1,658)
Deferred revenue	(46,501)		(71,943)
Deferred costs	(3,003)		(3,453)
Investment in subsidiaries	(5,466)		(4,676)
Operating lease right-of-use assets	(9,362)		(10,643)
Other, net	(3,434)		(4,199)
Total deferred tax liabilities	(67,766)		(96,572)
Net deferred tax asset (liability)	$	92,591	$	(54,738)

The Company establishes a valuation allowance to reduce the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In evaluating the ability to realize deferred tax assets, the Company considers all available positive and negative evidence, in determining whether, based on the weight of that evidence, a valuation allowance is needed for some or all of their deferred tax assets. In determining the need for a valuation allowance on the Company's deferred tax assets the Company places greater weight on recent and objectively verifiable current information. The Company has considered taxable income in prior carryback years, future reversals of existing taxable temporary differences, tax planning strategies, and future taxable income in assessing the need for the valuation allowance. If the Company was to determine that it would be able to realize the deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes.

For the year ended December 31, 2020, the Company recorded a net valuation allowance release of $105.6 million on the basis of management’s reassessment of the amount of its deferred tax assets that are more likely than not to be realized. As of December 31, 2020, management has determined that it is more likely than not that its deferred taxes will be realized, with the exception of certain indefinite lived deferred tax assets and certain state net operating loss carryforwards of $24.3 million.


	2020		2019		2018
Balance at beginning of period	$	126,321	$	127,294	$	136,766
Impact from adoption of ASC 606	—		—		(4,365)
Net change in valuation allowance	(102,014)		(973)		(5,107)
Balance at end of period	$	24,307	$	126,321	$	127,294


	2020		2019		2018
Balance at beginning of period	$	48,305	$	48,469	$	49,521
Gross additions for tax positions related to the current year	—		—		146
Gross additions for tax positions related to prior years	—		—		550
Gross reductions for tax positions related to prior years	(22,186)		—		(665)
Gross reductions for tax positions related to the lapse of applicable statute of limitations	(2,416)		(164)		(311)
Gross reductions for tax positions related to current year settlements	—		—		(772)
Balance at end of period	$	23,703	$	48,305	$	48,469

For the year ended December 31, 2020, the Company's unrecognized tax benefit decreased by $24.6 million while for the year ended December 31, 2019, the Company's unrecognized tax benefit decreased by $0.2 million, and for the year ended December 31, 2018, the Company's unrecognized tax benefit decreased by $1.1 million. The decrease for the year December 31, 2020 was primarily attributable to a partial release of uncertain tax positions due to favorable developments with ongoing U.S. federal tax examinations. The decrease for the year ended December 31, 2019 was due to the reduction for tax positions related to the lapse of applicable statute of limitations. The decrease for the year ended December 31, 2018 was primarily due to the additional accrual of tax interest for tax positions related to prior years.

For the years ended December 31, 2020, 2019, and 2018, the Company had $23.7 million, $48.3 million, and $48.5 million, respectively, of unrecognized tax benefits excluding interest and penalties, that if recognized, would impact the effective tax rate. The Company recorded interest and penalties related to unrecognized tax benefits as part of the provision/(benefit) for income taxes in the Company's consolidated statements of operations of $(2.3) million, $3.7 million, and $2.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. Unrecognized tax benefits include $8.4 million, $10.7 million, and $7.0 million of accrued interest as of December 31, 2020, 2019, and 2018, respectively.

It is reasonably possible that the $23.7 million unrecognized tax benefit liability presented above for the year ended December 31, 2020, could decrease by $21.8 million within the next twelve months, due to an anticipated settlement with the tax authorities and the expiration of the statute of limitations in certain jurisdictions