Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

The continuing operations provision for income tax consisted of the following (in thousands):


	Years Ended December 31,
	2021		2020		2019
Current:
Federal	$	(8,435)	$	15,112	$	14,227
State	(248)		4,300		1,002
Foreign	15,931		18,631		6,045
Total current	7,248		38,043		21,274

Deferred:
Federal	(17,132)		(6,022)		(2,004)
State	(5,044)		(67)		(3,849)
Foreign	729		6,396		(1,661)
Total deferred	(21,447)		307		(7,514)
Total provision	$	(14,199)	$	38,350	$	13,760

Reconciliation of Statutory Federal Income Tax Rate with Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate with the Company’s continuing operations effective income tax rate is as follows:


	Years Ended December 31,
	2021		2020		2019
Statutory tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net	(1.3)		1.8		0.8
Foreign rate differential	(0.3)		2.8		(0.7)
Foreign income inclusion	0.7		5.2		4.4
Foreign tax credit	(0.8)		(4.3)		(4.5)
Reserve for uncertain tax positions	(2.4)		11.5		9.3
Valuation allowance	(1.7)		9.9		0.2



Impact on deferred taxes of enacted tax law and rate changes	(0.5)		3.3		(1.3)
Tax credits and incentives	(1.5)		(7.2)		(9.2)
Mark-to market on investment in Consensus	(18.0)		—		—
Return to provision adjustments	0.5		2.4		0.2
Executive compensation	0.7		2.7		5.3


Other	(0.4)		(0.2)		(0.4)
Effective tax rates	(4.0)	%	48.9	%	25.1	%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities result from differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Temporary differences and carryforwards which give rise to deferred tax assets and liabilities from continuing operations are as follows (in thousands):


	Years Ended December 31,
	2021		2020
Deferred tax assets:
Net operating loss carryforwards	$	28,393	$	21,134
Tax credit carryforwards	2,801		9,022
Accrued expenses	12,548		17,393
Allowance for bad debt	2,116		3,757
Share-based compensation expense	3,545		5,923

Impairment of investments	—		6,714

Deferred revenue	4,331		912
State taxes	3,771		4,948
Other	9,426		11,071
	66,931		80,874
Less: valuation allowance	(1,812)		(8,262)
Total deferred tax assets	$	65,119	$	72,612

Deferred tax liabilities:

Basis difference in property and equipment	$	(8,337)	$	(17,126)
Basis difference in intangible assets	(117,244)		(129,301)
Unrealized gains on investments	(11,291)		—
Prepaid insurance	(3,121)		(2,703)

Convertible debt	(21,972)		(65,192)
Other	(6,219)		(3,403)
Total deferred tax liabilities	(168,184)		(217,725)
Net deferred tax liabilities	$	(103,065)	$	(145,113)

Reconciliation of Unrecognized Tax Benefits

The aggregate changes in the balance of unrecognized tax benefits, which excludes interest and penalties, for 2021, 2020 and 2019, is as follows (in thousands):


	Years Ended December 31,
	2021		2020		2019
Beginning balance	$	46,032	$	43,687	$	40,842
Increases related to tax positions during a prior year	3,448		3,953		5,285
Decreases related to tax positions taken during a prior year	(5,511)		(244)		—
Increases related to tax positions taken in the current year	4,675		4,264		3,991
Settlements	—		(5,628)		(5,831)
Decreases related to expiration of statute of limitations	(9,117)		—		(600)
Ending balance	$	39,527	$	46,032	$	43,687