
	Years Ended December 31,
(In thousands)	2020		2019		2018
Current:
Federal	$	—	$	—	$	—
State	45		(42)		(119)
Foreign	847		2,762		1,806
Total	$	892	$	2,720	$	1,687
Deferred:
Federal	$	101	$	(1,189)	$	898
State	238		(3,992)		1,060
Foreign	(329)		1,454		61
Total	$	10	$	(3,727)	$	2,019
Income tax provision (benefit)	$	902	$	(1,007)	$	3,706


	Years Ended December 31,
	2020		2019		2018
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
State taxes	(0.5)	%	1.1	%	(2.8)	%
Other nondeductible items	—	%	(0.7)	%	(0.5)	%
Nondeductible interest and derivatives	(9.7)	%	(1.5)	%	(4.0)	%
Foreign rate differences	(1.8)	%	(1.8)	%	(2.2)	%
Change in valuation allowance	5.9	%	(5.3)	%	(5.4)	%
Stock compensation	(5.5)	%	(1.2)	%	(5.6)	%
Executive compensation	(0.1)	%	(0.1)	%	(0.3)	%
Goodwill impairment	—	%	(10.7)	%	—	%
Subscription receivable	—	%	—	%	(1.2)	%
US tax impact of restructuring	(14.4)	%	—	%	—	%
Other adjustments	1.1	%	(0.5)	%	(1.0)	%
Uncertain tax positions	2.1	%	—	%	(0.4)	%
Effective tax rate	(1.9)	%	0.3	%	(2.4)	%

The Company recognized income tax expense of $0.9 million during the year ended December 31, 2020, which is primarily comprised of current tax expense of $0.8 million related to foreign taxes. Included in total tax expense are income tax adjustments of $8.9 million for permanent differences in the book and tax treatment of certain stock-based compensation, limitations on the deductibility of certain executive compensation, and nondeductible interest expense on debt instruments and associated derivatives. Also included is an adjustment of $11.2 million for a permanent difference related to foreign earnings taxable in the U.S. as a result of a tax restructuring that occurred during the year. These tax adjustments, along with state and local taxes and book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.

The Company recognized an income tax benefit of $1.0 million during the year ended December 31, 2019, which is comprised of current tax expense of $2.7 million primarily related to foreign taxes and a deferred tax benefit of $3.7 million related to temporary differences between the tax treatment and GAAP accounting treatment for certain items. Included within the total tax benefit is income tax expense of $17.3 million related to the increase in valuation allowance recorded against the Company's deferred tax assets to offset the tax benefit of the Company's operating losses in the U.S. and certain foreign jurisdictions. Also included in the total tax benefit are income tax adjustments of $58.6 million related to the impairment of goodwill and $15.2 million for permanent differences in the book

and tax treatment of certain stock-based compensation, limitations on the deductibility of certain executive compensation, nondeductible interest expense on debt instruments and associated derivatives, and other nondeductible expenses. These tax adjustments, along with state and local taxes and book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.

The Company recognized an income tax expense of $3.7 million during the year ended December 31, 2018, which is comprised of current tax expense of $1.7 million primarily related to foreign taxes and a deferred tax expense of $2.0 million related to temporary differences between the tax treatment and GAAP accounting treatment for certain items. Included within the total tax expense is an income tax expense of $19.0 million related to the increase in valuation allowance recorded against the Company's deferred tax assets to offset the tax benefit of the Company's operating losses in the U.S. and certain foreign jurisdictions. An income tax adjustment of $19.7 million has also been included for permanent differences in the book and tax treatment of certain stock-based compensation, limitations on the deductibility of certain executive compensation, nondeductible interest expense on debt instruments and associated derivatives, and other nondeductible expenses. These tax adjustments, along with state and local taxes and book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.

The COVID-19 pandemic has a global reach, and many countries have introduced measures that provide relief to taxpayers in a variety of ways. The Company has evaluated these measures, including the CARES Act in the United States, and has concluded that these did not have a significant impact on its income tax (provision) benefit for the year ended December 31, 2020.


	As of December 31,
(In thousands)	2020		2019
Deferred tax assets:
Net operating loss carryforwards	$	197,017	$	212,253
Lease liability	14,517		16,772
Deferred revenues	14,483		5,095
Deferred compensation	6,138		8,146
Accrued salaries and benefits	3,499		2,406
Tax credits	2,187		2,945
Tax contingencies	1,132		1,127
Allowance for doubtful accounts	776		453
Capital loss carryforwards	263		266
Goodwill	—		2,462
Litigation settlement	—		225
Other	2,550		2,409
Gross deferred tax assets	242,562		254,559
Valuation allowance	(220,115)		(219,607)
Net deferred tax assets	$	22,447	$	34,952
Deferred tax liabilities:
Lease asset	$	(8,829)	$	(11,219)
Property and equipment	(5,716)		(5,134)
Intangible assets	(3,495)		(15,202)
Subpart F income recapture	(1,224)		(1,224)
Goodwill	(958)		—
Other	(111)		(86)
Total deferred tax liabilities	(20,333)		(32,865)
Net deferred tax asset	$	2,114	$	2,087

As of December 31, 2020, and 2019, the Company had a valuation allowance of $220.1 million and $219.6 million, respectively, against certain deferred tax assets. The valuation allowance relates to the deferred tax assets of the Company's U.S. entities, including federal and state tax attributes and timing differences, as well as the deferred tax assets of certain foreign subsidiaries. The increase in the valuation allowance during 2020 is primarily related to the pre-tax losses generated in the U.S. To the extent the Company determines that, based on the weight of available evidence, all or a portion of its valuation allowance is no longer necessary, the

Company will recognize an income tax benefit in the period such determination is made for the reversal of the valuation allowance. If management determines that, based on the weight of available evidence, it is more-likely-than-not that all or a portion of the net deferred tax assets will not be realized, the Company may recognize income tax expense in the period such determination is made to increase the valuation allowance. It is possible that such reduction of or addition to the Company's valuation allowance may have a material impact on the Company's results from operations.

As of December 31, 2020, the Company had federal and state net operating loss carryforwards for tax purposes of $578.5 million and $1,360.7 million, respectively. These net operating loss carryforwards will begin to expire in 2023 for federal income tax purposes and 2021 for state income tax purposes. The federal and certain state net operating losses generated after December 31, 2017 have an indefinite carryforward period. As of December 31, 2020, the Company had an aggregate net operating loss carryforward for tax purposes related to its foreign subsidiaries of $5.1 million, which will begin to expire in 2024.

Under the provisions of Internal Revenue Code Section 382, certain substantial changes in the Company's ownership may result in a limitation on the amount of U.S. net operating loss carryforwards that can be utilized annually to offset future taxable income and taxes payable. A significant portion of the Company's net operating loss carryforwards are subject to an annual limitation under Section 382 of the Internal Revenue Code, and the Company anticipates that the Transactions will trigger further limitations. Additionally, despite the net operating loss carryforwards, the Company may have a future tax liability due to foreign tax or state tax requirements.

As of December 31, 2020, the Company has certain foreign subsidiaries with accumulated undistributed earnings. The TCJA allows for a dividend received deduction resulting in no material U.S. federal income tax upon repatriation of these earnings. The Company intends to indefinitely reinvest these earnings, as well as future earnings from its foreign subsidiaries, to fund its international operations and therefore has not accrued any foreign withholding taxes or state income taxes.

For uncertain tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefits determined on a cumulative probability basis, which are more-likely-than-not to be realized upon ultimate settlement in the financial statements. The Company has unrecognized tax benefits, which are tax benefits related to uncertain tax positions which have been or will be reflected in income tax filings that have not been recognized in the financial statements due to potential adjustments by taxing authorities in the applicable jurisdictions. The Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $0.7 million and $1.6 million as of December 31, 2020 and 2019, respectively. The remaining unrecognized tax benefits have reduced deferred tax balances. The amount of unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate are $2.0 million, $2.3 million and $2.5 million as of December 31, 2020, 2019 and 2018, respectively, and include the federal tax benefit of state deductions. The Company anticipates a negligible amount of unrecognized tax benefits will reverse during the next year due to the expiration of statutes of limitation.


	As of December 31,
(In thousands)	2020		2019		2018
Beginning balance	$	2,400	$	2,560	$	2,508
Increase related to tax positions of prior years	47		14		167
Increase related to tax positions of the current year	51		53		90

Decrease related to tax positions of prior years	(5)		(84)		(106)

Decrease due to lapse in statutes of limitations	(415)		(143)		(99)
Ending balance	$	2,078	$	2,400	$	2,560

The Company recognizes interest and penalties related to income tax matters in income tax expense. As of December 31, 2020 and 2019, accrued interest and penalties on unrecognized tax benefits were $0.1 million and $0.7 million, respectively. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. For income tax returns filed by the Company, the Company is generally no longer subject to U.S. federal examinations by tax authorities for years prior to 2017 or state and local tax examinations by tax authorities for years prior to 2016. The Company is no longer subject to examination by tax authorities in the Netherlands for years prior to 2014. However, tax attribute carryforwards may still be adjusted upon examination by tax authorities.