Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Income before Income Tax, Domestic and Foreign

The following table sets forth the components of the Company's income before income tax (expense) benefit:


	Years Ended December 31,
(in thousands)	2021		2020		2019
United States	$	168,965	$	41,238	$	53,566
Foreign	(34,651)		—		—
Total income before income tax (expense) benefit	$	134,314	$	41,238	$	53,566

Schedule of Components of Income Tax Expense (Benefit)

The following table sets forth the components of the Company's income tax (expense) benefit:


	Years Ended December 31,
(in thousands)	2021		2020		2019
Current tax (expense):
Federal	$	(31,690)	$	(30,277)	$	(37,319)
State and local	(5,852)		(7,213)		(5,861)
Foreign	(14,494)		—		—
Total current tax (expense)	(52,036)		(37,490)		(43,180)
Deferred tax (expense) benefit:
Federal	(4,378)		101,613		32,327
State and local	2,560		43,860		(7,209)
Foreign	21,117		—		—
Total deferred tax benefit	19,299		145,473		25,118
Total income tax (expense) benefit	$	(32,737)	$	107,983	$	(18,062)

Schedule of Effective Income Tax Rate Reconciliation

The following table sets forth the principal reasons for the differences between the effective income tax rate and the statutory federal income tax rate for the Company:


	Years Ended December 31,
	2021		2020		2019
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
Foreign rate differential	(3.6)	%	—	%	—	%
Impact of non-US taxing jurisdictions, net	0.8	%	—	%	—	%
State and local taxes, net of federal tax benefit	4.3	%	7.4	%	2.7	%
Change in value of indemnification asset	—	%	2.8	%	1.6	%
Non-deductible executive compensation	1.0	%	3.5	%	—	%
Stock compensation	(0.5)	%	4.4	%	—	%
Non-deductible transaction costs	4.2	%	4.9	%	0.8	%
Change in federal and state valuation allowance	(2.3)	%	(256.0)	%	1.9	%
Change in unrecognized tax benefits (including FBOS)	(1.4)	%	(48.7)	%	5.3	%
Other, net	0.9	%	(1.2)	%	0.4	%
Effective tax rate	24.4	%	(261.9)	%	33.7	%

Schedule of Deferred Tax Assets and Liabilities

The following table sets forth the significant components of the Company's deferred income tax assets and liabilities:


	Years Ended December 31,
(in thousands)	2021		2020
Deferred tax assets
Allowance for doubtful accounts	$	5,099	$	9,979
Deferred and other compensation	13,956		10,636
Capital investments	3,795		3,790
Debt, capitalized fees, and other interest	329		2,291
Pension and other post-employment benefits	37,569		51,231
Operating lease liability	9,726		7,539
Reserve for facility exit costs	5,070		7,053
Net operating loss and credit carryforwards (1)	26,522		28,611
Fixed assets and capitalized software	—		420
Non-compete and other agreements	40,335		46,213
Goodwill and other intangible assets	—		8,335
Other, net	6,435		8,566
Total deferred tax assets	$	148,836	$	184,664
Valuation allowance	(21,338)		(24,307)
Net deferred tax assets	$	127,498	$	160,357

Deferred tax liabilities
Deferred revenue	$	(21,033)	$	(46,501)
Goodwill and other intangible assets	(6,764)		—
Deferred costs	(2,254)		(3,003)
Investment in subsidiaries	(4,828)		(5,466)
Operating lease right-of-use assets	(7,572)		(9,362)
Fixed assets and capitalized software	(2,466)		—
Other, net	(2,814)		(3,434)
Total deferred tax (liabilities)	$	(47,731)	$	(67,766)
Net deferred tax asset	$	79,767	$	92,591

(1) At December 31, 2021 and 2020, the Company had net operating loss and credit carryforwards of $26.5 million and $28.6 million, respectively, for state income tax purposes, which will begin to expire in 2023.

Summary of Valuation Allowance

The following table sets forth changes in the Company’s valuation allowance:


(in thousands)	2021		2020
Balance at beginning of period	$	24,307	$	126,321
Net change in valuation allowance	(2,969)		(102,014)
Balance at end of period	$	21,338	$	24,307

Schedule of Unrecognized Tax Benefits Roll Forward

The following table reflects changes to and balances of the Company's unrecognized tax benefits:


(in thousands)	2021		2020		2019
Balance at beginning of period	$	23,703	$	48,305	$	48,469
Gross reductions for tax positions related to prior years	—		(22,186)		—
Gross reductions for tax positions related to the lapse of applicable statute of limitations	(2,869)		(2,416)		(164)
Balance at end of period	$	20,834	$	23,703	$	48,305