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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax (benefit)/expense on income/(loss) analyzed by jurisdiction is as follows:
Year ended December 31,
202120202019
Current
U.K.$4,374 $1,288 $677 
U.S. Federal4,798 17,540 6,917 
U.S. State289 2,861 988 
Other20,206 15,855 9,959 
Total current29,667 37,544 18,541 
Deferred
U.K.(8,254)(15,932)— 
U.S. Federal5,987 (15,020)(824)
U.S. State(2,771)(1,013)(223)
Other(12,331)(8,277)(7,293)
Total deferred
(17,369)(40,242)(8,340)
Total provision (benefit) for income taxes $12,298 $(2,698)$10,201 
The components of pre-tax loss are as follows:
Year ended December 31,
202120202019
U.K. (loss)$(13,059)$(347,158)$(246,688)
U.S. income (loss)(284,853)(47,198)3,733 
Other income (loss)39,762 41,033 (5,477)
Pre-tax loss$(258,150)$(353,323)$(248,432)
A reconciliation of the statutory U.K. income tax rate to the Company’s effective tax rate is as follows:
Year ended December 31,
202120202019
Loss before tax:$(258,150)$(353,323)$(248,432)
Income tax (benefit) provision12,298 (2,698)10,201 
Statutory rate19.0 %19.0 %19.0 %
Effect of different tax rates3.2 %1.8 %(4.0)%
BEAT(3.8)%(1.9)%(0.9)%
Tax rate modifications17.4 %— %— %
Valuation Allowances(39.0)%(21.1)%(17.6)%
Share-based compensation(2.7)%6.6 %(0.2)%
Other permanent differences2.3 %(1.9)%(0.9)%
Non-deductible transaction costs(0.8)%(1.4)%(1.7)%
Withholding tax(0.4)%(0.2)%(0.5)%
Tax indemnity— %— %3.0 %
Other— %(0.1)%(0.2)%
Effective rate(4.8)%0.8 %(4.1)%
The tax effects of the significant components of temporary differences giving rise to the Company’s deferred income tax assets and liabilities are as follows:
December 31,
20212020
Accounts receivable$2,637 $1,550 
Accrued expenses24,121 4,078 
Deferred revenue5,171 11,956 
Other assets32,302 14,561 
Unrealized gain/loss679 208 
Fixed assets, net— 6,237 
Debt issuance costs16,980 14,879 
Lease liabilities13,442 — 
Goodwill73,827 123,175 
Operating losses and tax attributes533,339 368,670 
Total deferred tax assets702,498 545,314 
Valuation allowances(546,770)(367,962)
Net deferred tax assets155,728 177,352 
Other identifiable intangible assets, net(407,944)(442,275)
Other liabilities(69,071)(72,210)
Right of Use Assets(9,342)— 
Fixed assets, net(21,493)— 
Total deferred tax liabilities(507,850)(514,485)
Net deferred tax liabilities$(352,122)$(337,133)
In the Consolidated Balance Sheets, deferred tax assets and liabilities are shown net if they are in the same jurisdiction. The components of the net deferred tax liabilities as reported on the Consolidated Balance Sheets are as follows:
December 31,
20212020
Deferred tax asset$27,938 $29,863 
Deferred tax liability(380,060)(366,996)
Net deferred tax liability$(352,122)$(337,133)
Deferred Tax Assets and Liabilities
The Company is required to assess the realization of its deferred tax assets and the need for a valuation allowance. The assessment requires judgment on the part of management with respect to benefits that could be realized from future taxable income. The valuation allowance is $546,770 and $367,962 at December 31, 2021 and 2020, respectively against certain deferred tax assets, as it more likely than not that such amounts will not be fully realized. During the years ended December 31, 2021 and 2020, the valuation allowance increased by $178,808 and $194,703, respectively.
At December 31, 2021, the Company had U.S. federal tax loss carryforwards of $983,033, U.K. tax loss carryforwards of $508,669, U.S. state tax loss carryforwards of $625,713, Japan tax loss carryforwards of $58,398, and tax loss carryforwards in other foreign jurisdictions of $92,394, respectively. The majority of the unrecognized tax loss carryforwards relate to UK and U.S. The carryforward period for US federal tax losses is twenty years for losses generated in tax years ended prior to December 31, 2017. The expiration period for these losses begins in 2036. For US losses generated in tax years beginning after January 1, 2018, the carryforward period is indefinite. The carryforward period for the U.K. tax losses is indefinite. The carryforward period for US state losses varies, and the expiration period is between 2021 and 2040. The carryforward period for the Japan tax losses is nine years, and the expiration period begins in 2025. The carryforward period of other losses varies by jurisdiction.
The Company has provided income taxes and withholding taxes in the amount of $12,893 on the undistributed earnings of foreign subsidiaries as of December 31, 2021. Included in the amount is a historical ProQuest liability in the amount of $7,461 which was recorded against goodwill in the acquisition accounting. The Company is not permanently reinvesting its foreign earnings offshore.

Deferred Tax Valuation Allowance
The following table shows the change in the deferred tax valuation as follows:
December 31,
202120202019
Beginning Balance, January 1$367,962 $173,259 $133,856 
Change Charged to Expense/(Income)100,708 52,111 38,956 
Change Charged to CTA(4,740)1,787 447 
Change Charged to Goodwill82,840 140,805 — 
Ending Balance, December 31$546,770 $367,962 $173,259 
Uncertain Tax Positions
Unrecognized tax benefits represent the difference between the tax benefits that the Company is able to recognize for financial reporting purposes and the tax benefits that have been recognized or expect to be recognized in filed tax returns. The total amount of net unrecognized tax benefits that, if recognized, would impact the Company's effective tax rate were $100,182 and $13,721 as of December 31, 2021 and 2020, respectively. As a result of the acquisition of ProQuest, a reserve of $70,842 has been recorded as part of the acquisition accounting related to positions taken in prior tax years by ProQuest. The majority of the reserve, in the amount of $66,616, is due to a tax controversy in Israel.

The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the tax provision. As of December 31, 2021, the interest and penalties are $19,808 and, as of December 31, 2020, the interest and penalties are $5,454. It is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months by
approximately $745.
The Company files income tax returns in the United Kingdom, the United States and various other jurisdictions. As of December 31, 2021, the Company’s open tax years subject to examination were 2016 through 2021, which includes the Company’s major jurisdictions in the United Kingdom and the United States.
The following table summarizes the Company’s unrecognized tax benefits, excluding interest and penalties:
December 31,
202120202019
Balance at the beginning of the year$13,721 $1,145 $1,450 
Increases for tax positions taken in prior years— 12,098 — 
Increases for tax positions taken in the current year4,996 518 412 
Increases for acquisitions (recorded against goodwill)70,842 — — 
Increases for return to provisions10,949 — — 
Decreases due to statute expirations(326)(40)— 
Decrease due to payment— — (717)
Balance at the end of the year$100,182 $13,721 $1,145