INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES

Schedule of components of income before income taxes

The components of income before income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands):

	2021		2020		2019
Domestic	$	(38,407)	$	(17,689)	$	(15,661)
Foreign		15,720		17,782		21,733
Total	$	(22,687)	$	93	$	6,072

Schedule of reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense

The following is a reconciliation from the tax computed at statutory income tax rates to the Company’s income tax expense for the years ended December 31, 2021, 2020 and 2019 (in thousands):

	2021		2020		2019
Tax computed at statutory US federal income tax rates	$	(4,760)	$	20	$	1,275
Noncontrolling interest		(158)		(851)		(648)
Foreign tax rate differential		(4,520)		1,866		(1,769)
Over (under) provided in prior periods		(78)		(520)		(244)
Nondeductible expenses		1,429		1,098		3,359
Benefit Attributable CARES Act		—		(3,064)		—
Capitalized transactions costs		898		—		19
Change in tax reserves		2,524		2,148		3,883
State Taxes, net of federal benefit		(1,399)		(409)		(429)
Change in valuation allowance		3,575		33		(35)
Investment Tax Credit		101		84		(1,215)
Stock-based compensation		510		406		422
Deferred income tax revaluation		—		(10)		(513)
Total Income Tax Expense	$	(1,878)	$	801	$	4,105

Schedule of components of income tax expense (benefit)

The components of income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands):

\
	2021		2020		2019
Current:
United States—Federal	$	460	$	504	$	(1,559)
United States—State		2		3		(336)
Foreign		4,272		7,611		8,192
Total current income tax expense	$	4,734	$	8,118	$	6,297
Deferred:
United States—Federal	$	(5,800)	$	(6,527)	$	(1,805)
United States—State		(1,402)		(413)		(93)
Foreign		590		(377)		(294)
Total deferred income tax expense (benefit)	$	(6,612)	$	(7,317)	$	(2,192)
Consolidated:
United States—Federal	$	(5,340)	$	(6,023)	$	(3,364)
United States—State		(1,400)		(410)		(429)
Foreign		4,862		7,234		7,898
Total income tax expense (benefit)	$	(1,878)	$	801	$	4,105

Schedule of significant components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities are as follows as of December 31, 2021 and 2020 (in thousands):

	2021		2020
Deferred tax assets:
Accounts receivable and inventory allowances	$	2,348	$	1,972
Basis in investments		6,939		7,512
Accrued expenses		8,619		4,701
Deferred revenue		27,940		3,141
Employee benefits		8,454		4,363
Other, net		968		744
Net operating losses		41,117		26,582
Tax Credits		1,916		1,997
Operating lease liability		31,207		14,648
Total deferred tax asset		129,508		65,660
Deferred tax liabilities:
Acquired intangible assets, property and equipment		83,423		26,736
Right-of-use asset		29,967		14,594
Prepaid expense		189		209
Total deferred tax liabilities		113,579		41,539
Valuation allowance		(33,642)		(31,014)
Net deferred tax liabilities	$	(17,713)	$	(6,893)

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands):

	2021		2020
Deferred tax assets:
Long term	$	3,747	$	3,782
Total deferred tax asset	$	3,747	$	3,782
Deferred tax liabilities:
Long term	$	(21,460)	$	(10,675)
Total deferred tax liabilities	$	(21,460)	$	(10,675)
Net deferred tax liabilities	$	(17,713)	$	(6,893)

Schedule of activity related to unrecognized tax benefits

The following shows the activity related to unrecognized tax benefits (not including interest and penalty) during the three years ended December 31, 2021 (in thousands):

Gross unrecognized uncertain tax benefits at December 31, 2018	$	30,232
Increase in unrecognized tax benefits taken during a prior period		—
Increase in unrecognized tax benefits taken during the current period		3,383
Lapse in statute of limitations		(933)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2019	$	32,682
Increase in unrecognized tax benefits taken during a prior period		—
Increase in unrecognized tax benefits taken during the current period		2,964
Lapse in statute of limitations		(1,768)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2020	$	33,878
Increase in unrecognized tax benefits taken during a prior period		(216)
Increase in unrecognized tax benefits taken during the current period		3,880
Increase in unrecognized tax benefits acquired as part of a business combination		8,275
Lapse in statute of limitations		(2,103)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2021	$	43,714