XML 41 R30.htm IDEA: XBRL DOCUMENT v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Components of Net Income from Continuing Operations Before Income Taxes

Income Tax Provision. The components of net income before income taxes are as follows (in thousands):

 

 

2023

 

 

2022

 

 

2021

 

Domestic

 

$

72,769

 

 

$

53,251

 

 

$

98,261

 

Australia

 

 

854

 

 

 

(5,851

)

 

 

(3,429

)

India

 

 

10,008

 

 

 

9,517

 

 

 

5,873

 

Ireland

 

 

(236

)

 

 

(3,391

)

 

 

1,627

 

United Kingdom

 

 

2,029

 

 

 

2,533

 

 

 

(5,734

)

Foreign other

 

 

6,927

 

 

 

4,722

 

 

 

4,348

 

Total

 

$

92,351

 

 

$

60,781

 

 

$

100,946

 

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision consists of the following (in thousands):

 

 

2023

 

 

2022

 

 

2021

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

34,438

 

 

$

30,012

 

 

$

17,012

 

State

 

 

8,230

 

 

 

6,517

 

 

 

5,835

 

Australia

 

 

(333

)

 

 

55

 

 

 

118

 

India

 

 

3,601

 

 

 

4,370

 

 

 

959

 

Ireland

 

 

336

 

 

 

273

 

 

 

561

 

United Kingdom

 

 

1,002

 

 

 

349

 

 

 

426

 

Foreign other

 

 

2,391

 

 

 

2,772

 

 

 

1,338

 

 

 

 

49,665

 

 

 

44,348

 

 

 

26,249

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(19,687

)

 

 

(21,962

)

 

 

2,294

 

State

 

 

(1,982

)

 

 

(3,073

)

 

 

344

 

Australia

 

 

(896

)

 

 

(890

)

 

 

(180

)

India

 

 

(1,231

)

 

 

(1,388

)

 

 

368

 

Ireland

 

 

(205

)

 

 

(341

)

 

 

(150

)

United Kingdom

 

 

(233

)

 

 

469

 

 

 

(558

)

Foreign other

 

 

674

 

 

 

(442

)

 

 

248

 

 

 

 

(23,560

)

 

 

(27,627

)

 

 

2,366

 

Total income tax provision

 

$

26,105

 

 

$

16,721

 

 

$

28,615

 

Schedule of Effective Income Tax Rate Reconciliation

The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax provision is summarized as follows (in thousands):

 

 

2023

 

 

2022

 

 

2021

 

Provision at Federal rate of 21%

 

$

19,394

 

 

$

12,764

 

 

$

21,199

 

State income taxes, net of Federal impact

 

 

4,485

 

 

 

2,079

 

 

 

4,882

 

Research and experimentation credits

 

 

(1,053

)

 

 

(1,560

)

 

 

(2,062

)

Stock award vesting

 

 

(554

)

 

 

(1,355

)

 

 

(538

)

Tax uncertainties

 

 

(289

)

 

 

(227

)

 

 

69

 

Section 162(m) compensation limitation

 

 

2,955

 

 

 

2,326

 

 

 

1,610

 

Foreign rate differential

 

 

987

 

 

 

571

 

 

 

592

 

Valuation allowance for deferred tax assets

 

 

(1,655

)

 

 

638

 

 

 

1,427

 

Withholding tax

 

 

2,728

 

 

 

1,948

 

 

 

2,305

 

Convertible debt premium

 

 

-

 

 

 

(1,017

)

 

 

-

 

Other

 

 

(893

)

 

 

554

 

 

 

(869

)

Total income tax provision

 

$

26,105

 

 

$

16,721

 

 

$

28,615

 

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax assets as of December 31, 2023 and 2022 are as follows (in thousands):

 

 

2023

 

 

2022

 

Deferred income tax assets

 

$

109,536

 

 

$

81,747

 

Deferred income tax liabilities

 

 

(25,351

)

 

 

(27,733

)

Valuation allowance

 

 

(26,453

)

 

 

(27,925

)

Net deferred income tax assets

 

$

57,732

 

 

$

26,089

 

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2023 and 2022 are as follows (in thousands):

 

 

2023

 

 

2022

 

Net deferred income tax assets (liabilities):

 

 

 

 

 

 

Accrued expenses and reserves

 

$

10,907

 

 

$

6,206

 

Stock-based compensation

 

 

5,643

 

 

 

5,321

 

Software

 

 

80

 

 

 

(855

)

Client contracts and related intangibles

 

 

(7,536

)

 

 

(9,577

)

Goodwill

 

 

(14,874

)

 

 

(13,424

)

Net operating loss carryforwards

 

 

25,379

 

 

 

27,820

 

Property and equipment

 

 

(2,941

)

 

 

(3,789

)

Deferred revenue

 

 

6,539

 

 

 

4,882

 

Debt financing

 

 

7,396

 

 

 

(88

)

Foreign exchange gain/loss

 

 

2,010

 

 

 

1,791

 

Operating lease right-of-use assets and lease liabilities

 

 

3,555

 

 

 

5,872

 

R&D

 

 

46,817

 

 

 

28,733

 

Unrecognized tax benefit

 

 

326

 

 

 

408

 

Credits and incentives

 

 

384

 

 

 

374

 

Other

 

 

500

 

 

 

340

 

Total net deferred income tax assets

 

 

84,185

 

 

 

54,014

 

Less: valuation allowance

 

 

(26,453

)

 

 

(27,925

)

Net deferred income tax assets

 

$

57,732

 

 

$

26,089

 

Reconciliation of Beginning and Ending Balances of Liability for Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands):

 

 

2023

 

 

2022

 

 

2021

 

Balance, beginning of year

 

$

2,562

 

 

$

2,929

 

 

$

1,393

 

Additions related to prior acquisitions

 

 

-

 

 

 

2

 

 

 

1,508

 

Lapse of statute of limitations

 

 

(409

)

 

 

5

 

 

 

(151

)

Additions for tax positions of prior years

 

 

100

 

 

 

8

 

 

 

36

 

Reductions for tax positions of prior years

 

 

(395

)

 

 

(382

)

 

 

(62

)

Additions for tax positions of current year

 

 

-

 

 

 

-

 

 

 

205

 

Balance, end of year

 

$

1,858

 

 

$

2,562

 

 

$

2,929