Income Taxes (Tables)

3 Months Ended

Mar. 31, 2021

A summary of the components of the Company’s deferred tax assets at March 31, 2021 and December 31, 2020 are as follows:


	March 31, 2021			December 31, 2020
Deferred tax assets:
Capital losses	$	16,596		$	16,596
Operating lease liabilities		4,851			4,953
Interest carryforwards		2,184			2,235
NOLs – Foreign		2,084			2,167
Goodwill and intangible assets		1,418			1,466
Accrued expenses		1,363			3,507
Stock-based compensation		1,195			1,922
NOLs – U.S.		382			510
Outside basis differences		122			122
Other		263			111

Deferred tax assets		30,458			33,589


Deferred tax liabilities:
Right of use assets – operating leases		3,848			3,927
Fixed assets and prepaid assets		1,234			1,261
Foreign currency translation adjustment		262			293
Unremitted earnings – International subsidiaries		97			138
Allocated equity component of convertible notes		—			1,022

Deferred tax liabilities		5,441			6,641

Total deferred tax assets less deferred tax liabilities		25,017			26,948
Less: valuation allowance		(18,802	)		(18,885	)

Deferred tax assets, net	$	6,215		$	8,063

Schedule of Changes in Balance of Gross Unrecognized Tax Benefits

The table below sets forth the aggregate changes in the balance of these gross unrecognized tax benefits during the three months ended March 31, 2021:


	Total			Unrecognized Tax Benefits			Interest and Penalties
Balance on January 1, 2021	$	27,016		$	21,850		$	5,166
Decrease - Lapse of statute of limitations (1)		(5,171	)		(3,559	)		(1,612	)
Increases		39			—			39
Foreign currency translation (2)		338			273			65

Balance at March 31, 2021	$	22,222		$	18,564		$	3,658

(1)

Recorded as an income tax benefit of $5,171 during the three months ended March 31, 2021, along with an equal and offsetting amount recorded in other losses, net, to recognize a reduction in the indemnification asset. During the three months ended March 31, 2020, an income tax benefit of $5,981 was recorded along with an equal and offsetting amount in other losses, net.

(2)	The gross unrecognized tax benefits were accrued in British pounds.