Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of U.S. and International (Loss) Income Before Income Taxes

The components of U.S. and International income (loss) before income taxes is as follows for the years presented:


	Year Ended December 31,
(in thousands)	2023		2022		2021
United States	$	(11,676)	$	(4,811)	$	(55,912)
International	23,927		32,927		26,924
Total income (loss) before income taxes	$	12,251	$	28,116	$	(28,988)

Schedule of Income Tax Provision (Benefit) for Income Taxes

The income tax provision (benefit) for income taxes consists of the following for the years presented:


	Year Ended December 31,
(in thousands)	2023		2022		2021
Current income tax provision:
US Federal	$	10,694	$	—	$	—
US State	2,842		2,202		1,547
International	12,707		9,855		9,808
Total current income tax provision	26,243		12,057		11,355

Deferred income tax benefit:
US Federal	(9,854)		(927)		(15,597)
US State	(2,973)		(1,489)		(2,451)
International	(1,049)		(935)		(3,768)
Total deferred income tax benefit	(13,876)		(3,351)		(21,816)
Total income tax provision (benefit)	$	12,367	$	8,706	$	(10,461)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate for continuing operations is as follows for the years presented:


	Year Ended December 31,
(dollars in thousands)	2023			2022			2021
Income (loss) before income taxes
US Federal and State	$	(11,676)		$	(4,811)		$	(55,912)
International	23,927			32,927			26,924
Total income (loss) before income taxes	$	12,251		$	28,116		$	(28,988)
US Federal statutory rate	21		%	21		%	21		%
Income taxes computed at US Federal statutory rate	$	2,573		$	5,904		(6,088)
Tax impact of foreign operations	4,807			2,880			(1,348)
Tax credits	(1,324)			(1,396)			(840)
Non-deductible transaction related costs	520			346			851
Non-deductible compensation	4,472			2,661			3,136
Stock-based compensation shortfall (windfall)	895			(570)			—
State taxes, net of Federal effect	(825)			(151)			(949)
U.S. Return to provision and deferred tax adjustments	(391)			60			(4,243)
Uncertain tax positions	1,670			1,190			(1,439)
Change in valuation allowance	—			48			234
Amended tax returns	—			(2,268)			—
Other permanent differences	(30)			2			225
Total income tax provision (benefit)	$	12,367		$	8,706		$	(10,461)
Effective income tax rate	100.9		%	31.0		%	36.1		%

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and deferred tax liabilities consisted of the following:


	December 31,
(in thousands)	2023		2022
Deferred tax assets
Loss carryforwards	$	8,912	$	9,136
Tax credits	724		7,113
Accounts receivable, accrued expenses and reserves	7,752		8,466
Interest expense	7,626		9,292
Stock-based compensation	6,902		7,803
Hedges, swaps and other unrealized losses	2,821		1,526
ROU lease liability	2,832		4,543
Other	71		163
Total deferred tax assets, gross	37,640		48,042
Valuation allowance	(2,766)		(2,766)
Total deferred tax assets, net	$	34,874	$	45,276
Deferred tax liabilities
Intangibles	$	(38,654)	$	(53,475)
Property and equipment	—		(1,201)
ROU lease asset	(1,533)		(4,513)
Prepaid expenses	(1,827)		(2,925)
Capitalized commissions	(1,492)		(1,444)
Outside basis difference in subsidiaries	(441)		(962)
Other	(348)		(11)
Total deferred liabilities	(44,295)		(64,531)
Total deferred tax liabilities, net	$	(9,421)	$	(19,255)

Schedule of Valuation Allowance

Activity in the Company’s valuation allowance accounts consists of the following for the years presented:


	Year Ended December 31,
(in thousands)	2023		2022		2021
Beginning balance	$	(2,766)	$	(2,718)	$	(2,484)
Additions of deferred income tax expense	—		(48)		(234)
Reductions of deferred income tax expense	—		—		—
Ending balance	$	(2,766)	$	(2,766)	$	(2,718)

Schedule of Unrecognized Tax Benefits

Unrecognized tax benefits are reconciled as follows for the years presented:


	December 31,
(in thousands)	2023		2022
Gross unrecognized tax benefits as of January 1	$	3,721	$	2,677
Increases—prior year tax positions	1,559		735
Decreases—prior year tax positions	(566)		(266)
Increases—current year tax positions	536		575
Gross unrecognized tax benefits as of December 31	$	5,250	$	3,721