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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of loss before provision for income taxes Our loss before provision for income taxes was as follows (in thousands):
 
For the Years Ended December 31,
 
2019
 
2018
 
2017
Domestic
$
(328,161
)
 
$
(54,681
)
 
$
(76,404
)
Foreign
1,045

 
530

 

Loss before income taxes and non-controlling interests
$
(327,116
)
 
$
(54,151
)
 
$
(76,404
)

Components of income tax expense (benefit)

Components of income tax expense (benefit) (in thousands) consist of the following:
 
For the Years Ended December 31,
 
2019
 
2018
 
2017
Current
 
 
 
 
 
Federal
$
1,175

 
$
458

 
$
368

State and local
14

 
9

 
266

Foreign
399

 
251

 

Total current tax expense
1,588

 
718

 
634

Deferred
 
 
 
 
 
Federal
(27,334
)
 
(14,820
)
 
3,202

State and local
(5,046
)
 
(2,252
)
 
(3,102
)
Foreign
6

 
(49
)
 

Total deferred tax expense
(32,374
)
 
(17,121
)
 
100

Change in valuation allowance
9,250

 
16,443

 
(7,371
)
Total tax expense (benefit)
$
(21,536
)
 
$
40

 
$
(6,637
)

Schedule of reconciliation of the U.S. statutory tax rate to our effective tax rate
A reconciliation of the U.S. statutory tax rate to our effective tax rate and our statutory rate is presented below:
 
For the Years Ended December 31,
 
2019
 
2018
 
2017
U.S. statutory tax rate
21.0
 %
 
21.0
 %
 
35.0
 %
U.S. state income taxes, net of U.S. federal tax benefit
4.4
 %
 
3.6
 %
 
3.3
 %
Foreign earnings at other than U.S. rates
(0.1
)%
 
(0.2
)%
 
 %
Change in valuation allowance
(2.8
)%
 
(30.4
)%
 
(34.0
)%
Change in valuation allowance, tax reform
 %
 
 %
 
43.7
 %
Impact of tax reform
 %
 
 %
 
(36.0
)%
Non-deductible goodwill impairment
(15.8
)%
 
 %
 
 %
Non-controlling interest
(0.3
)%
 
(0.7
)%
 
(4.6
)%
Excess tax benefits on stock-based compensation
(0.2
)%
 
3.9
 %
 
3.1
 %
Federal and state research tax credits
 %
 
4.5
 %
 
 %
Change in uncertain tax positions
0.1
 %
 
(1.1
)%
 
 %
Effect of investment in MHG
(1.4
)%
 
 %
 
 %
Change in indefinite reinvestment assertion for domestic subsidiaries
2.6
 %
 
 %
 
 %
Other, net
(0.8
)%
 
(0.7
)%
 
(1.8
)%
Effective rate
6.7
 %
 
(0.1
)%
 
8.7
 %

Schedule of deferred tax assets and liabilities
Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows:

  
As of December 31,
  
2019
 
2018
Deferred Tax Assets
 
 
 
Start-up and organizational costs
$
149

 
$
160

Internally developed software costs

 
3,283

Goodwill
19,142

 

Operating lease liabilities
18,055

 

Accrued expenses
9,534

 

Stock based compensation
8,899

 

Net operating loss carryforwards
112,316

 
76,019

Federal and state research tax credits
1,828

 
1,828

Other
3,941

 
861

Subtotal
173,864

 
82,151

Valuation allowance
(50,815
)
 
(37,037
)
Total deferred tax assets
123,049

 
45,114

 
 
 
 
Deferred Tax Liabilities
 
 
 
Internally developed software costs
14,603

 

Intangible assets
58,655

 
26,710

Outside basis differences
5,865

 
43,492

Right-of-use assets - Operating
16,180

 

Contract fulfillment costs
9,510

 

Convertible debt
15,732

 

Fixed assets
796

 

Other
3,650

 

Total deferred tax liabilities
124,991

 
70,202

Net deferred tax assets (liabilities)
$
(1,942
)
 
$
(25,088
)

Changes in valuation allowance
Changes in our valuation allowance (in thousands) were as follows:

 
For the Years Ended December 31,
 
2019
 
2018
 
2017
Balance at beginning-of-year
$
37,037

 
$
53,201

 
$
26,376

Charged to costs and expenses
9,250

 
16,443

 
(7,371
)
Charged to other accounts (1)
4,528

 
(32,607
)
 
34,196

Balance at end-of-year
$
50,815

 
$
37,037

 
$
53,201

(1) 
Amounts charged to other accounts includes an increase of $4.5 million and a decrease of $32.6 million and an increase of $34.2 million charged to additional paid-in-capital for the years ended December 31, 2019, 2018 and 2017, respectively.
Changes in unrecognized tax benefits
Changes in our unrecognized tax benefits (in thousands) were as follows:
 
For the Years Ended December 31,
 
2019
 
2018
 
2017
Balance at beginning-of-year
$
934

 
$
762

 
$

Gross increases - tax positions in prior period

 
934

 
1,108

Gross decreases - tax positions in prior period

 
(762
)
 

Gross increases - tax positions in current period

 

 
74

Lapse of statute of limitations
(181
)
 

 

Change in tax rate

 

 
(420
)
Balance at end-of-year
$
753

 
$
934

 
$
762