Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The income tax provision attributable to continuing operations for the years ended December 31, 2024, 2023, and 2022, consists of the following:

	Year Ended December 31,
	2024		2023		2022
	(In Thousands)
Current
State	$	348	$	535	$	130
Foreign	9,228		6,419		2,898
	9,576		6,954		3,028
Deferred
Federal	(94,799)		—		—
State	(2,751)		(41)		30
Foreign	3,096		(693)		507
	(94,454)		(734)		537
Total tax provision	$	(84,878)	$	6,220	$	3,565

A reconciliation of the provision (benefit) for income taxes attributable to continuing operations, computed by applying the federal statutory rate to income (loss) before income taxes and the reported income taxes, is as follows:

	Year Ended December 31,
	2024		2023		2022
	(In Thousands)
Income tax provision computed at statutory federal income tax rates	$	6,036	$	6,657	$	2,345
State income taxes, net of federal benefit	1,225		1,052		1,332
Nondeductible expenses	1,622		1,399		1,270
Impact of international operations	4,877		1,285		1,955
Valuation allowance	(97,871)		(3,693)		(2,980)
Other	(767)		(480)		(357)
Total tax provision (benefit)	$	(84,878)	$	6,220	$	3,565

Income (loss) before taxes and discontinued operations includes the following components:

	Year Ended December 31,
	2024		2023		2022
	(In Thousands)
Domestic	$	(9,130)	$	8,315	$	(4,609)
International	37,872		23,384		15,775
Total	$	28,742	$	31,699	$	11,166

As of December 31, 2024 and 2023, we had no unrecognized tax benefits. We do not expect a significant change to the unrecognized tax benefits during the next twelve months.

We file tax returns in the U.S. and in various state, local, and non-U.S. jurisdictions. The following table summarizes the earliest tax years that remain subject to examination by taxing authorities in any major jurisdiction in which we operate:

	Earliest Open Tax Period
United States – Federal	2012
United States – State and Local	2005
Non-United States Jurisdictions	2013

We use the liability method for reporting income taxes, under which current and deferred tax assets and liabilities are recorded in accordance with enacted tax laws and rates. Under this method, at the end of each period, the amounts of deferred tax assets and liabilities are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. We establish a valuation allowance to reduce the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We considered all available evidence, both positive and negative, in determining whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of our deferred tax assets. In determining the need for a valuation allowance on our deferred tax assets we placed greater weight on recent and objectively verifiable current information, as compared to more forward-looking information that is used in valuating other assets on the balance sheet. While we have considered taxable income in prior carryback years, future reversals of existing taxable temporary differences, future taxable income, and tax planning strategies in assessing the need for the valuation

allowance, there can be no guarantee that we will be able to realize our net deferred tax assets. Significant components of our deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows:

	December 31,
	2024		2023
	(In Thousands)
Net operating losses	$	89,088	$	94,964
Accruals	20,602		21,227
Depreciation and amortization for book in excess of tax expense	9,792		10,620
All other	13,353		10,585
Total deferred tax assets	132,835		137,396
Valuation allowance	(19,447)		(116,834)
Net deferred tax assets	$	113,388	$	20,562
Right of use assets	$	9,092	$	8,695
Depreciation and amortization for tax in excess of book expense	2,944		5,224
Revenue deferred for tax	2,660		—
Investments	1,570		2,886
All other	3,885		5,126
Total deferred tax liabilities	20,151		21,931
Net deferred tax assets (liabilities)	$	93,237	$	(1,369)

 

Deferred tax assets and liabilities are netted by jurisdiction in our consolidated balance sheets. Deferred tax assets and liabilities netted by jurisdiction as of December 31, 2024 and 2023 are as follows:

	December 31,
	2024		2023
	(In Thousands)
Deferred tax assets	$	98,149	$	910
Deferred tax liabilities	(4,912)		(2,279)
Net deferred tax assets (liabilities)	$	93,237	$	(1,369)

As of December 31, 2024, a significant portion of our deferred tax assets were United States (federal and state) assets, which include net operating loss carryforwards, tax credit carryforwards as well as temporary differences between GAAP and tax basis that will result in future tax deductions in excess of book. Significant management judgment is required in determining the period in which a reversal of a valuation allowance should occur. We are required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. During the years ended December 31, 2024, 2023, and 2022, we expect to utilize or have utilized approximately $19.3 million, $40.2 million and $37.3 million, respectively of federal net operating losses in the Unites States. During the year ended December 31, 2024, in part because we achieved three years of cumulative pretax income in the United States tax jurisdiction, after adjusting for permanent book and tax differences, which is a positive indication of our ability to generate sufficient future taxable income, we determined that there was sufficient positive evidence to conclude that it is more likely than not that additional deferred taxes are realizable and, therefore, released the valuation allowance accordingly. For the year ended December 31, 2024, we recorded a net United States federal and state valuation allowance release of $97.5 million on the basis of our reassessment of the amount of its deferred tax assets that are more likely than not to be realized. Our accounting for deferred tax consequences represents the best estimate of those future events. The $97.4 million decrease in the valuation allowance during the year ended December 31, 2024 is primarily due to the recorded net United States federal and state valuation allowance release.

At December 31, 2024, we had deferred tax assets associated with federal, state, and foreign net operating loss carryforwards/carrybacks equal to approximately $72.4 million, $9.0 million, and $7.7 million, respectively. In those countries and states in which net operating losses are subject to an expiration period, our loss carryforwards,

if not utilized, will expire at various dates from 2025 through 2043. Utilization of the net operating loss and credit carryforwards may be subject to a significant annual limitation due to ownership changes that have occurred previously or could occur in the future provided by Section 382 of the Internal Revenue Code.