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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The following summarizes the components of income tax expense (benefit):

			Years ended December 31,
(dollars in thousands)			2022			2021			2020
Current taxes:
U.S. Federal			$	3,485		$	(2,499)		$	(407)
U.S. State and local			5,708			(257)			1,563
International			7,283			6,570			3,904
Total current taxes			16,476			3,814			5,060
Deferred taxes:
U.S. Federal			(16,880)			(4,615)			(1,064)
U.S. State and local			(9,319)			222			7,725
International			(445)			1,964			2,176
Total deferred taxes			(26,644)			(2,429)			8,837
Total income tax (benefit) provision			$	(10,168)		$	1,385		$	13,897

Schedule of Income Before Provision for Income Taxes

The following summarizes the components of income before provision for income taxes:

			Years ended December 31,
(dollars in thousands)			2022			2021			2020
U.S.			$	(91,493)		$	(23,180)		$	(4,112)
International			35,918			30,263			25,726
Income before provision for income taxes			$	(55,575)		$	7,083		$	21,614

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the effect of applying the federal statutory rate and the effective income tax rate used to calculate our income tax provision (benefit) is as follows:

			Years ended December 31,
			2022			2021			2020
Federal statutory rate			21.0		%	21.0		%	21.0		%
Effect of:
State income taxes, net of federal benefit			1.5			4.4			5.9
Change in foreign income tax rate applied to deferred tax balances			0.1			42.6			4.0
Change in state income tax rate applied to deferred tax balances			1.8			2.3			0.1
Nondeductible security incident-related fines or penalties			(8.7)			—			—
Section 162(m) limitation			(6.4)			75.0			17.5
Stock-based compensation			(6.3)			(36.2)			(1.2)
Change in valuation reserve (primarily state credit reserves)			(5.4)			26.1			38.2
GILTI inclusion			(2.6)			—			1.3
Nondeductible meals, entertainment and transportation			(0.7)			1.1			3.3
Acquisition costs			—			8.7			—
DTA Adjustment – NOLs			—			—			(3.3)
Unrecognized tax benefit			0.5			(32.7)			1.3
Foreign tax rate			1.0			(6.0)			(1.7)
Return to accrual adjustment			1.4			(4.2)			(4.1)
FDII benefit			2.3			—			—
State credits, net of federal benefit			7.2			(32.6)			(2.3)
Federal credits generated			11.5			(54.5)			(17.4)
Other			0.1			4.6			1.7
Income tax provision effective rate			18.3		%	19.6		%	64.3		%

Schedule of Deferred Tax Assets and Liabilities

The significant components of our deferred tax assets and liabilities were as follows:

			December 31,
(dollars in thousands)			2022			2021
Deferred tax assets relating to:
Federal and state and foreign net operating loss carryforwards			$	10,369		$	21,456
Federal, state and foreign tax credits			50,194			52,283
Stock-based compensation			21,166			21,432
Operating leases			14,024			23,795
Allowance for credit losses			1,803			2,524
Intangible assets			561			1,070
Deferred revenue			1,820			1,057
Accrued bonuses			455			218
Capitalized R&D and software costs			12,166			—
Other			6,293			13,515
Total deferred tax assets			118,851			137,350
Deferred tax liabilities relating to:
Intangible assets			(161,836)			(168,392)
Capitalized software and content development costs			—			(31,326)
Costs of obtaining contracts			(16,287)			(18,046)
Operating leases			(11,721)			(23,582)
Fixed assets			(9,827)			(8,483)
Other			(9,016)			(2,515)
Total deferred tax liabilities			(208,687)			(252,344)
Valuation allowance			(34,769)			(31,974)
Net deferred tax liability			$	(124,605)		$	(146,968)

Summary of Changes in Deferred Tax Asset Valuation Allowance

The following table illustrates the change in our deferred tax asset valuation allowance:

Years ended December 31, (dollars in thousands)			Balance at beginning of year			Acquisition- related change			Charges to expense			Balance at end of year
															2022			$	31,974		$	—		$	2,795		$	34,769
2021			29,184			893			1,897			31,974
2020			6,453			—			22,731			29,184

Summary of Changes in Unrecognized Tax Benefits

The following table sets forth the change to our unrecognized tax benefit for the years ended December 31, 2022, 2021 and 2020:

			Years ended December 31,
(dollars in thousands)			2022			2021			2020
Balance at beginning of year			$	3,651		$	4,625		$	4,346
Increases from prior period positions			89			6			414
Decreases in prior year positions			(908)			(57)			(614)
Increases from current period positions			629			1,751			491
Settlements (payments)			—			(1,192)			—
Lapse of statute of limitations			(378)			(1,482)			(12)
Balance at end of year			$	3,083		$	3,651		$	4,625

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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