INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Pretax Income (Loss) before Income Tax, Domestic and Foreign

The components of pretax income (loss) from continuing operations for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
United States	$	(65,256)	$	60,875	$	(55,699)
International	(126,714)		27,150		(238,367)
Income (loss) from continuing operations before provision (benefit) for income taxes	$	(191,970)	$	88,025	$	(294,066)

Schedule of Components of Income Tax Expense (Benefit)

The Provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 consisted of the following components (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current taxes:
U.S. federal	$	161	$	2,354	$	(180)
State	704		1,629		1,719
International	(7,554)		(2,321)		(1,942)
Total current taxes	(6,689)		1,662		(403)
Deferred taxes:
U.S. federal	31,132		(15,254)		32
State	20,307		(16,864)		114
International	(2,340)		(1,867)		(7,247)
Total deferred taxes	49,099		(33,985)		(7,101)
Provision (benefit) for income taxes (1)	$	42,410	$	(32,323)	$	(7,504)

(1)Amounts included in the Provision (benefit) for income taxes related to continuing operations.

Schedule of Effective Income Tax Rate Reconciliation

The items accounting for differences between the income tax provision (benefit) from continuing operations computed at the U.S. federal statutory rate and the Provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
U.S. federal income tax provision (benefit) at statutory rate	$	(40,314)	$	18,485	$	(61,805)
Foreign income and losses taxed at different rates (1)	9,035		5,000		8,608
State income taxes, net of federal benefits, and state tax credits	4,133		4,897		6,487
Change in valuation allowances	64,328		(50,695)		(4,474)
Effect of income tax rate changes on deferred items	443		815		618
Adjustments related to uncertain tax positions	(13,062)		2,588		(15,518)
Non-deductible stock-based compensation expense	2,191		2,727		3,803
Tax (windfalls)/shortfalls on stock-based compensation awards	2,741		(1,762)		3,876
Federal research and development credits, net of adjustments	(812)		(396)		6,043
Forgiveness of intercompany liabilities	1,468		(62)		(2,863)
Tax attribute expiration	5,519		—		19,962
Goodwill impairment	7,213		—		23,202
Observable price change on an other equity investment	—		(17,955)		—
Non-deductible or non-taxable items	(473)		4,035		4,557
Provision (benefit) for income taxes	$	42,410	$	(32,323)	$	(7,504)

(1)Tax rates in foreign jurisdictions were generally lower than the U.S. federal statutory rate through December 31, 2022. This resulted in an adverse impact to the Provision (benefit) for income taxes in this rate reconciliation for the years ended December 31, 2022, 2021 and 2020 prior to the impact of valuation allowances, due to the net pretax losses from continuing operations in certain foreign jurisdictions with lower tax rates.

Schedule of Deferred Tax Assets and Liabilities

The deferred income tax assets and liabilities consisted of the following components as of December 31, 2022 and 2021 (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Accrued expenses and other liabilities	$	37,397	$	45,532
Operating lease obligation	5,602		10,890
Stock-based compensation	3,886		4,014
Net operating loss and tax credit carryforwards	135,743		140,787
Intangible assets, net	19,139		20,357
Investments	20,360		20,581
Convertible senior notes	4,638		5,929
Unrealized foreign currency exchange losses	—		1,078
Capitalized research and development costs (1)	9,994		—
Other	312		244
Total deferred tax assets	237,071		249,412
Less: Valuation allowances	(204,462)		(145,105)
Deferred tax assets, net of valuation allowance	32,609		104,307
Deferred tax liabilities:
Prepaid expenses and other assets	(11,983)		(14,605)
Property, equipment and software, net	(1,470)		(9,511)
Right-of-use asset	(679)		(7,293)
Deferred revenue	(8,027)		(12,755)
Total deferred tax liabilities	(22,159)		(44,164)
Net deferred tax asset (liability)	$	10,450	$	60,143

(1)The 2017 Tax Cuts and Jobs Act amended Internal Revenue Cost Section 174 to require taxpayers to capitalize certain research and experimental expenditures. This regulatory change is effective for amounts paid or incurred in tax years beginning after December 31, 2021. A new deferred tax asset has been established in relation to this law change and the capitalized Section 174 costs must be amortized over five years.

Summary of Unrecognized Tax Benefits

The following table summarizes activity related to our gross unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2022, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Beginning Balance	$	49,502	$	48,960	$	64,361
Increases related to prior year tax positions	—		5,105		8,389
Decreases related to prior year tax positions	(124)		(3,138)		(22,541)
Increases related to current year tax positions	3,028		1,887		1,994
Decreases based on settlements with taxing authorities	(109)		—		—
Decreases due to lapse of statute limitations	(12,410)		(2,530)		(5,640)
Foreign currency translation	(715)		(782)		2,397
Ending Balance	$	39,172	$	49,502	$	48,960