INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Schedule of components of income before income taxes

The components of income before income taxes for the years ended December 31, 2023, 2022 and 2020 are as follows (in thousands):

	2023		2022		2021
Domestic	$	(57,289)	$	(37,777)	$	(38,407)
Foreign		29,750		29,721		15,720
Total	$	(27,539)	$	(8,056)	$	(22,687)

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, 2023, 2022 and 2021 (in thousands):

	2023		2022		2021
Tax computed at statutory US federal income tax rates	$	(5,783)	$	(1,681)	$	(4,760)
Noncontrolling interest		(62)		844		(158)
Foreign tax rate differential		(8,853)		(6,525)		(4,520)
Over (under) provided in prior periods		(179)		(437)		(78)
Nondeductible expenses		1,806		2,111		1,429
Capitalized transactions costs		56		134		898
Change in tax reserves		2,783		4,052		2,524
State Taxes, net of federal benefit		(1,776)		(1,126)		(1,399)
Change in valuation allowance		2,467		2,117		3,575
Investment Tax Credit		84		84		101
Stock-based compensation		812		696		510
Deferred income tax revaluation		(140)		(742)		-
Total Income Tax Expense	$	(8,785)	$	(473)	$	(1,878)

Schedule of components of income tax expense (benefit)

The components of income tax expense (benefit) for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands):

\
	2023		2022		2021
Current:
United States—Federal	$	921	$	302	$	460
United States—State		404		20		2
Foreign		6,646		6,657		4,272
Total current income tax expense	$	7,971	$	6,979	$	4,734
Deferred:
United States—Federal	$	(7,786)	$	(4,527)	$	(5,800)
United States—State		(2,781)		(1,895)		(1,402)
Foreign		(6,189)		(1,030)		590
Total deferred income tax expense (benefit)	$	(16,756)	$	(7,452)	$	(6,612)
Consolidated:
United States—Federal	$	(6,865)	$	(4,225)	$	(5,340)
United States—State		(2,377)		(1,875)		(1,400)
Foreign		457		5,627		4,862
Total income tax expense (benefit)	$	(8,785)	$	(473)	$	(1,878)

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, 2023 and 2022 (in thousands):

	2023		2022
Deferred tax assets:
Accounts receivable and inventory allowances	$	2,552	$	2,567
Basis in investments		3,795		4,387
Accrued expenses		7,331		7,063
Deferred revenue		26,768		27,526
Employee benefits		4,515		6,690
Other, net		14,764		6,892
Net operating losses		78,876		63,713
Tax Credits		5,659		2,995
Operating lease liability		23,370		24,451
Total deferred tax asset		167,630		146,284
Deferred tax liabilities:
Acquired intangible assets, property and equipment		105,729		106,529
Right-of-use asset		27,099		27,796
Prepaid expense		250		197
Total deferred tax liabilities		133,078		134,522
Valuation allowance		(43,118)		(35,759)
Net deferred tax liabilities	$	(8,566)	$	(23,997)

Schedule of deferred tax assets and liabilities

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

	2023		2022
Deferred tax assets:
Long term	$	11,209	$	4,653
Total deferred tax asset	$	11,209	$	4,653
Deferred tax liabilities:
Long term	$	(19,775)	$	(28,650)
Total deferred tax liabilities	$	(19,775)	$	(28,650)
Net deferred tax liabilities	$	(8,566)	$	(23,997)

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, 2023 (in thousands):

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
Increase in unrecognized tax benefits taken during a prior period		—
Increase in unrecognized tax benefits taken during the current period		5,080
Increase in unrecognized tax benefits acquired as part of a business combination		(6,825)
Lapse in statute of limitations		(2,050)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2022	$	39,919
Increase in unrecognized tax benefits taken during a prior period		—
Increase in unrecognized tax benefits taken during the current period		2,598
Increase in unrecognized tax benefits acquired as part of a business combination		—
Lapse in statute of limitations		(2,449)
Settlements		—
Gross unrecognized uncertain tax benefits at December 31, 2023	$	40,068