Income Tax (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The components of income tax expense consisted of the following:

	Years ended December 31,
(In thousands)	2021		2020		2019
Current tax provision	$	23,388	$	22,907	$	19,366
Deferred tax benefit	(2,826)		(3,905)		(6,391)
Income tax expense	$	20,562	$	19,002	$	12,975

Segregation of Income Tax Expense (Benefit) Based on Location of Operations

The following table presents the components of income tax expense and its segregation based on location of operations:

	Years ended December 31,
(In thousands)	2021		2020		2019
Income before income tax provision
Puerto Rico	$	148,331	$	98,608	$	89,667
United States	622		3,953		4,047
Foreign countries	32,752		21,292		22,961
Total income before income tax provision	$	181,705	$	123,853	$	116,675
Current tax provision
Puerto Rico	$	6,792	$	7,260	$	7,550
United States	137		612		339
Foreign countries	16,459		15,035		11,477
Total current tax provision	$	23,388	$	22,907	$	19,366
Deferred tax (benefit) provision
Puerto Rico	$	(2,428)	$	(2,087)	$	(4,109)
United States	109		1,041		(216)
Foreign countries	(507)		(2,859)		(2,066)
Total deferred tax benefit	$	(2,826)	$	(3,905)	$	(6,391)

Components of Deferred Tax Assets and Liabilities

The following table presents the components of the Company’s deferred tax assets and liabilities:

	December 31,
(In thousands)	2021		2020
Deferred tax assets (“DTA”)
Allowance for doubtful accounts	$	175	$	223
Unearned income	10,475		11,058
Lease liability	2,655		3,410
Share-based compensation	1,181		1,163
Debt issuance costs	132		189
Accrued liabilities	3,263		1,828
Derivative liability	1,036		2,070
Accrual of contract maintenance cost	84		110
Impairment of asset	290		310
Other	1,596		1,649
Total gross deferred tax assets	20,887		22,010
Deferred tax liabilities (“DTL”)
Capitalized salaries	2,193		2,095
Difference between the assigned values and the tax basis of assets and liabilities recognized in business combinations	7,978		10,507
Right of use asset	2,707		3,340
Other	3,468		3,086
Total gross deferred tax liabilities	16,346		19,028
Deferred tax asset (liability), net	$	4,541	$	2,982

Summary of Operating Loss Carryforwards

The NOL balance as of December 31, 2021 expires as follows:

(In thousands)
2026	$	51
2028	688
2029	1,558
2030	4,112
2031	3,737
2033	178
Indefinitely	1,072

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of UTPs:

	Years ended December 31,
(In thousands)	2021		2020		2019
Balance, beginning of year	$	5,908	$	9,146	$	9,238
Gross increases—tax positions in prior period	431		1,335		—
Gross decreases—tax positions in prior period	(101)		(192)		(92)
Lapse of statute of limitations	(2,287)		(4,381)		—
Balance, end of year	$	3,951	$	5,908	$	9,146

Income Tax Expense Differs from Computed Income Tax at Statutory Rates

The income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate of 37.5% to the income before income taxes as a result of the following:

	Years ended December 31,
(In thousands)	2021		2020		2019
Computed income tax at statutory rates	$	68,139	$	46,445	$	43,753
Differences in tax rates due to multiple jurisdictions	2,003		839		1,058
Excess tax benefits on share-based compensation	(1,023)		(1,094)		(1,779)
Effect of income subject to tax-exemption grant	(46,762)		(31,347)		(31,424)
Unrecognized tax (benefit) expense	(3,388)		1,322		(32)
Other, net	1,593		2,837		1,399
Income tax expense	$	20,562	$	19,002	$	12,975