Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of components of income before provision for income taxes

For the years ended December 31, 2020 and 2019, Income before provision for income taxes, includes the following components (amounts in thousands):

	2020		2019
Domestic income	$	8,112	$	21,695
Foreign loss		(1,258)		(13,080)
Income before provision for income taxes	$	6,854	$	8,615

Schedule of composition of income tax expense

For the years ended December 31, 2020 and 2019, income tax expense is comprised of the following (amounts in thousands):

	2020		2019
Current income tax expense	$	7,405	$	8,493
Deferred income tax		1,587		3,593
Income tax expense	$	8,992	$	12,086

Schedule of reconciliation of income tax (benefit) expense

For the years ended December 31, 2020 and 2019, the reconciliation of income tax expense computed at the U.S. federal statutory rates to income tax expense is (amounts in thousands):

	2020		2019
Income tax expense at federal statutory rate-US Only	$	1,439	$	1,810
Income tax expense at federal statutory rate-Foreign Only		4,402		3,637
Permanent items		1,325		184
Return to provision true-ups -Current/Deferred		(2,042)		301
Foreign rate differential		(1,117)		(2,284)
Foreign tax credits		(5,693)		(5,501)
Foreign valuation allowance		4,615		10,007
Change in FTC valuation allowance		543		3,785
Revaluation of Puerto Rico deferred taxes		84		(1,361)
Foreign withholding taxes		1,283		1,449
Deferred foreign tax credit offset		29		(421)
State taxes and state rate change		2,073		480
Foreign rate tax change		2,051		—
Income tax expense	$	8,992	$	12,086

Schedule of components of net deferred tax liabilities

	2020		2019
Deferred tax assets:
Allowances for doubtful accounts	$	1,078	$	776
Deferred branch tax benefit		11,645		11,813
Deferred revenue		114		109
NOL credit and other carryovers		290		274
Fixed assets		140		94
Accrued expenses		1,353		1,455
Foreign tax credit		19,040		18,497
Stock compensation		3,594		3,634
Pension		449		360
Interest rate swap		510		178
Intangibles		1,335		1,354
Equity method losses		26,996		21,976
Other deferred tax assets		4		38
Less: Foreign income valuation allowance		(27,186)		(22,570)
Less: Foreign tax credit valuation allowance		(19,040)		(18,497)
Total deferred tax assets		20,322		19,491
Deferred tax liabilities:
Prepaid expenses		(535)		(504)
Intangibles		(15,506)		(15,496)
Property and equipment		(7,992)		(8,225)
Amortization expense		(15,595)		(13,389)
Total deferred tax liabilities		(39,628)		(37,614)
	$	(19,306)	$	(18,123)

Schedule of classification of deferred tax amounts

The deferred tax amounts mentioned above have been classified on the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019 as follows (amounts in thousands):

	2020		2019
Non-current assets	$	—	$	1,208
Non-current liabilities	$	19,306	$	19,331