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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income Tax Provision

The domestic and foreign components of net income (loss) before provision for income taxes is as follows:
Year ended December 31,
20212020
Domestic$150 $(3,446)
Foreign4,194 2,738 
Income (loss) before provision for income taxes$4,344 $(708)
The components of the provision for (benefit from) income taxes are as follows:
Year ended December 31,
20212020
Current tax provision (benefit):
U.S. Federal$— $— 
State and local5 5 
Foreign1,462 699 
Total current provision for (benefit from) income taxes1,467 704 
Deferred tax provision (benefit):
U.S. Federal— — 
State and local— — 
Foreign(350)(169)
Total deferred benefit from income taxes(350)(169)
Total provision for provision for income taxes$1,117 $535 

Tax Rate Reconciliation

The effective tax rates for the years ended December 31, 2021 and 2020 were 25.7% and negative 75.5%, respectively. The change in effective tax rate in 2021 is primarily related to the reduction and effective lapsing of statutes for certain historic foreign uncertain tax positions and mix of income and losses in different jurisdictions taxed at different rates, as well as changes in valuations allowances in the U.S. and in our foreign subsidiaries. The change in the effective tax rate in 2020 is primarily related to the mix of income and losses in different jurisdictions taxed at different rates, as well as changes in valuation allowances in the U.S. and in our foreign subsidiaries. The effects of other federal and state deferred tax adjustments in 2021 and 2020 were offset by changes in valuation allowances and have no net impact on effective tax rates.

The following is a reconciliation of the effective tax rate for the years ended December 31, 2021 and 2020 to the U.S. federal statutory rate of 21%:
Year ended December 31,
20212020
Benefit at federal statutory rates$912 $(149)
State income taxes, net of federal benefit144 (212)
Change in valuation allowance(3,893)227 
Taxes related to foreign income1,256 195 
Non-deductible expenses105 (271)
Other federal deferred tax adjustments791 (23)
Other state deferred tax adjustments2,362 738 
Uncertain tax positions(560)30 
Provision for income taxes$1,117 $535 
    
Deferred Taxes Assets (Liabilities)

Deferred income taxes are provided for the tax effect of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. Net deferred tax assets have been reported as non-current in the accompanying Consolidated Balance Sheets. Significant temporary differences at December 31, 2021 and 2020 are as follows:
As of December 31,
20212020
Deferred tax assets (liabilities):
Allowance for doubtful accounts$96 $23 
Property and equipment(169)2 
Goodwill and intangibles(113)204 
Accrued compensation2,612 1,818 
Accrued liabilities and other109 106 
Loss carryforwards182,784 186,606 
Deferred tax assets before valuation allowance185,319 188,759 
Valuation allowance(183,974)(187,722)
Deferred tax assets, net of valuation allowance$1,345 $1,037 

As a result of the enactment of the Tax Act, the Company has provided tax on GILTI, and therefore, future repatriations of previously unremitted foreign earnings are expected to either be exempt from U.S. taxation or offset by net operating losses (“NOLs”). The Company has not provided any withholding tax with respect to unremitted foreign earnings, respectively, at December 31, 2021 and December 31, 2020.

Net Operating Losses (“NOLs”), Capital Losses, and Valuation Allowance

At December 31, 2021, the Company had losses for U.S. federal and state tax purposes of approximately $690,704 in total, made up of net U.S. federal and state NOLs incurred through December 31, 2021 of $312,041 and U.S. federal and state capital losses of $378,663 as a result of the sale of all of our RTM businesses in three separate transactions, which was completed on March 31, 2018. The NOLs include approximately $13,144 of tax losses that were not absorbed by Monster Worldwide, Inc. (“Monster”) on its consolidated U.S. federal tax returns through the spin-off of the Company on April 1, 2003. U.S. federal and state NOLs incurred through December 31, 2017 expire at various dates through 2037 with $7,984 scheduled to expire during 2022. U.S. federal and state NOLs incurred in or after 2018 have an indefinite carryforward period, which can be offset by 80% of future taxable income in any given year. U.S. federal and state capital losses incurred in 2018 will expire after five years during 2023.

The Company’s utilization of U.S. NOLs is subject to an annual limitation imposed by Section 382 of the Internal Revenue Code (“IRC”), which may limit our ability to utilize all the existing NOLs before the expiration dates. Based upon IRC Section 382 studies prepared by the Company, Section 382 ownership changes have occurred that will result in $224,124 of the Company’s federal and state NOLs generated through September 2006 and recognized built-in losses during the five- year period after September 2006 being subject to IRC Section 382 limitations. As a result of IRC Section 382 limitations, $27,848 of the $224,124 NOLs that are limited are expected to expire prior to utilization specifically as a result of the IRC Section 382 cumulative annual limitations. Accordingly, the U.S. federal and state NOLs of $312,041, as indicated above, excluded the $27,848 of tax losses expected to expire prior to utilization due to IRC Section 382 cumulative annual limitations and the deferred tax asset for loss carryforwards of $179,985 also excluded $7,416 of related tax benefits.

As of December 31, 2021, certain international subsidiaries had NOLs for local tax purposes of $12,264. With the exception of $5,280 of NOLs with an indefinite carry forward period as of December 31, 2021, these losses will expire at various dates through 2039, with $0 scheduled to expire during 2022. The deferred tax recognized for NOLs are presented net of unrecognized tax benefits, where applicable.
ASC 740-10-30-5 requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In making this assessment, management considers the level of historical taxable income, scheduled reversals of deferred tax liabilities, tax planning strategies, and projected future taxable income. As of December 31, 2021, $182,768 of the valuation allowance relates to the deferred tax asset for NOLs, $179,985 of which is U.S. federal and state and $2,783 of which is foreign, that management has determined will more likely than not expire prior to realization. The remaining valuation allowance of $1,206 relates to deferred tax assets on U.S. and foreign temporary differences that management estimates will not be realized due to the Company’s U.S. and foreign tax losses.
Uncertain Tax Positions
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties is as follows:
20212020
Balance, beginning of year$669 $663 
Additions for tax positions of current years— — 
Additions for tax positions of prior years— 6 
Reductions for tax positions of prior years(309)— 
Expiration of applicable statutes of limitations— — 
Balance, end of year$360 $669 
The total amount of state and local and foreign unrecognized tax benefits that, if recognized, would affect the effective tax rate as of December 31, 2021 and December 31, 2020 was $360 and $669, respectively, exclusive of interest and penalties.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits as part of the provision for income taxes. As of December 31, 2021 and December 31, 2020, the Company had $110 and $594, respectively, of accrued interest and penalties associated with unrecognized tax benefits.
During 2021, the Canada Tax Authority concluded its investigations into the prior year tax positions and issued its final assessment for Canadian interest and penalties of $42. The remaining FIN48 reserve for Canada tax, interest and penalties of approximately $560 was released as a tax benefit in the third quarter of 2021.
Based on information available as of December 31, 2021, it is reasonably possible that the total amount of unrecognized tax benefits is not expected to increase or decrease over the next 12 months as a result of projected resolutions of global tax examinations and controversies and potential lapses of the applicable statutes of limitations.
In many cases, the Company’s unrecognized tax benefits are related to tax years that remain subject to examination by the relevant tax authorities. Tax years with NOLs remain open until such losses expire or the statutes of limitations for those years when the NOLs are used or expire. As of December 31, 2021, the Company’s open tax years which remain subject to examination by the relevant tax authorities, are between 2013 and 2021 depending on the jurisdiction.
Year
The Company believes that its unrecognized tax benefits as of December 31, 2021 are appropriately recorded for all years subject to examination above.