INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income (loss) before income taxes, including income from equity method investments, consisted of the following components:



	Year ended December 31,
	2019			2018		2017
	(in thousands)
Domestic	$	9,781		$	38,918	$	(298,351	)
Foreign	(24		)	18,557		(11,690		)
Income (loss) before income taxes ^(*)	$	9,757		$	57,475	$	(310,041	)

(*) Includes income from equity method investments

Summary of Income Tax Expense

Income tax expense (benefit) consisted of the following components:



	Year ended December 31,
	2019			2018			2017
	(in thousands)
Current:
Federal	$	17,130		$	277		$	23,965
State	3,379			4,646			4,458
Foreign	3,764			6,037			3,376
Total current income tax expense	24,273			10,960			31,799
Deferred:
Federal	3,393			(11,069		)	(177,272		)
State	18,188			(11,284		)	(13,710		)
Foreign	(985		)	(912		)	(596		)
Total deferred income tax expense (benefit)	20,596			(23,265		)	(191,578		)
Total income tax expense (benefit)	$	44,869		$	(12,305	)	$	(159,779	)

Summary of Differences Between the Company's Effective Tax Rate and the Federal Statutory Tax Rate

Income tax expense (benefit) reflected in the accompanying Consolidated Statements of Operations varies from the amounts that would have been provided by applying the United States federal statutory income tax rate of 21% to income (loss) before income taxes as shown below:



	Year ended December 31,
	2019			2018			2017
	(in thousands)
U.S. federal statutory income tax	$	2,049		$	12,070		$	(108,532	)
Increase (reduction) resulting from:
State income tax, net of federal tax benefit	3,014			(5,600		)	(3,224		)
International operations	2,085			856			(2,431		)
Foreign derived intangible income	(484		)	(2,003		)	—
Global intangible low taxed income	305			4,005			—
Premiums paid to wholly owned subsidiary company	(221		)	(221		)	(368		)
Nondeductible goodwill	—			—			6,219
Brand impairment	—			—			50,957
Exchange of convertible senior notes	40			—			(9,529		)
Loss (gain) on forward contracts for the issuance of the convertible preferred stock	3,525			(18,678		)	—
Formation of the joint ventures	8,067			—			—
Change in valuation allowance	27,117			2,547			(3,294		)
Stock based compensation	971			1,859			1,651
Federal tax credits and income deductions	(3,642		)	(5,305		)	(2,448		)
Tax impact of uncertain tax positions	4,831			1,028			295
Return to provision adjustment	(3,093		)	(1,073		)	(3,852		)
Impact of 2017 Tax Act	—			(3,583		)	(86,786		)
Other permanent differences	305			1,793			1,563
Income tax expense (benefit)	$	44,869		$	(12,305	)	$	(159,779	)

Summary of Significant Components of the Company's Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following at December 31:



	Year ended December 31,
	2019			2018
	(in thousands)
Deferred tax assets:
Operating reserves	$	4,642		$	5,787
Deferred revenue	7,402			9,118
Net operating loss and credit carryforwards	30,395			35,243
Lease liabilities	89,975			6,842
Fixed assets	8,941			12,632
Stock-based compensation	3,599			3,479
Interest limitation	29,205			20,073
Other	2,456			3,938
Valuation allowance	(42,348		)	(20,025		)
Total deferred tax assets	134,267			77,087

Deferred tax liabilities:
Prepaid expenses	(4,850		)	(3,820		)
Right-of-use assets	(68,116		)	—
Intangible assets	(91,673		)	(100,709		)
Convertible senior notes	(1,214		)	(3,616		)
Total deferred tax liabilities	(165,853		)	(108,145		)
Net deferred tax liability	$	(31,586	)	$	(31,058	)

Summary of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding penalties and interest, is as follows:



	December 31,
	2019			2018			2017
	(in thousands)
Balance of unrecognized tax benefits at beginning of period	$	6,950		$	5,774		$	6,456
Additions for tax positions taken during current period	180			882			748
Additions for tax positions taken during prior periods	4,774			715			192
Reductions for tax positions taken during prior periods	(800		)	(421		)	(675		)
Settlements	(385		)	—			(947		)
Balance of unrecognized tax benefits at end of period	$	10,719		$	6,950		$	5,774