Income Taxes (Tables) - Cypress Holdings Inc And Subsidiaries [Member]

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Line Items]

Schedule of Components of Pretax Loss Attributable to Domestic and Foreign Operations

The components of pretax loss attributable to domestic and foreign operations are as follows (in thousands):

	Years Ended December 31,
	2020			2019			2018
Domestic	$	(15,117	)	$	(270,428	)	$	(51,102	)
Foreign		(6,438	)		(7,205	)		(6,952	)
Pretax loss	$	(21,555	)	$	(277,633	)	$	(58,054	)

Schedule of Components of Income Tax Benefit

The income tax benefit consists of the following (in thousands):

	Years Ended December 31,
	2020			2019			2018
Current provision (benefit):
Federal	$	1,539		$	13,685		$	(1,083	)
State		4,906			3,302			1,809
Total current provision		6,445			16,987			726
Deferred provision (benefit):
Federal		(7,536	)		(67,874	)		(11,699	)
State		(3,588	)		(16,406	)		7,950
Foreign		(1,710	)		(1,873	)		(281	)
Change in valuation allowance		1,710			1,873			281
Total deferred benefit		(11,124	)		(84,280	)		(3,749	)
Total income tax benefit	$	(4,679	)	$	(67,293	)	$	(3,023	)

Summary of Effective Income Tax Rate Differs from the Federal Statutory Rate

The Company’s effective income tax rate differs from the federal statutory rate as follows (in thousands, except percentages):

	Year Ended					Year Ended					Year Ended
	December 31, 2020					December 31, 2019					December 31, 2018
Federal income tax benefit at statutory rate	$	(4,527	)	21.0	%	$	(58,303	)	21.0	%	$	(12,191	)	21.0	%
State and local taxes-net of federal income tax effect		288		(1.3	)		(13,797	)	5.0			9,378		(16.2	)
Impairment of goodwill		—		—			5,417		(2.0	)		—		—
Foreign rate difference		(227	)	1.1			(284	)	0.1			(272	)	0.5
Research and experimental credit		(3,058	)	14.2			(2,401	)	0.9			(1,926	)	3.3
Other nondeductible expenses		812		(3.8	)		441		(0.2	)		445		(0.8	)
Uncertain tax positions		589		(2.7	)		574		(0.2	)		230		(0.4	)
Valuation allowance		1,572		(7.3	)		1,926		(0.7	)		1,480		(2.5	)
Other—net		(128	)	0.5			(866	)	0.3			(167	)	0.3
Income tax benefit	$	(4,679	)	21.7	%	$	(67,293	)	24.2	%	$	(3,023	)	5.2	%

Schedule of Deferred Income Tax Assets and Liabilities

The approximate income tax effect of each type of temporary difference giving rise to deferred income tax assets and liabilities as of December 31, 2020 and 2019 was as follows (in thousands):

	2020			2019
Deferred income tax assets:
Accrued compensation	$	7,020		$	7,848
Net operating losses—foreign		9,347			7,637
Stock-based compensation		6,558			4,399
Research and experimental credit		2,005			1,352
Sales allowances and doubtful accounts		1,074			1,008
Capitalized acquisition costs		211			238
Net operating losses—domestic (state)		716			726
Disallowed interest expense		2,086			16,324
Interest rate swaps		4,685			1,301
Other		2,474			732
Total deferred income tax assets		36,176			41,565
Valuation allowance for deferred tax asset		(9,347	)		(7,637	)
Net deferred income tax assets		26,829			33,928
Deferred income tax liabilities:
Intangible asset amortization		331,941			354,628
Software, equipment and property depreciation and amortization		10,526			6,872
Deferred contract costs		6,710			5,900
Total deferred income tax liabilities		349,177			367,400
Net deferred income tax liabilities	$	322,348		$	333,472

Schedule of Change in Unrecognised Tax Benefits Excluding Interest and Penalties

The change in unrecognized tax benefits excluding interest and penalties for the years ended December 31, 2020 and 2019 was as follows (in thousands):

	2020			2019
Balance at beginning of year	$	2,306		$	1,508
Additions based on tax positions related to the current year		719			589
Additions based on true ups to tax positions of prior years		91			248
Reductions for tax positions of prior years		(71	)		(39	)
Balance at end of year	$	3,045		$	2,306

Summary of Major Jurisdictions Subject to Examination by the relevant Tax Auhtorities and Open Tax Years

With few exceptions, the major jurisdictions subject to examination by the relevant tax authorities and open tax years, stated as the Company’s fiscal years, are as follows:

Jurisdiction	Open Tax Years
US Federal	2017 - 2019
US States	2017 - 2019
China	2017 - 2019
Canada	2017 - 2019