XML 71 R38.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2023
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) | 2023 |  | 2022 |  | 2021 |
Current taxes: |  |  |
U.S. Federal | $ | 18,879 |  | $ | 3,485 |  | $ | (2,499) |
U.S. State and local | 12,331 |  | 5,708 |  | (257) |
International | 8,982 |  | 7,283 |  | 6,570 |
Total current taxes | 40,192 |  | 16,476 |  | 3,814 |
Deferred taxes: |  |  |
U.S. Federal | (18,303) |  | (16,880) |  | (4,615) |
U.S. State and local | (5,895) |  | (9,319) |  | 222 |
International | (170) |  | (445) |  | 1,964 |
Total deferred taxes | (24,368) |  | (26,644) |  | (2,429) |
Total income tax provision (benefit) | $ | 15,824 |  | $ | (10,168) |  | $ | 1,385 |
Schedule of Income Before Provision for Income Taxes | The following summarizes the components of income (loss) before provision for income taxes:
| Years ended December 31,
(dollars in thousands) | 2023 |  | 2022 |  | 2021 |
U.S. | $ | (22,074) |  | $ | (91,493) |  | $ | (23,180) |
International | 39,718 |  | 35,918 |  | 30,263 |
Income (loss) before provision for income taxes | $ | 17,644 |  | $ | (55,575) |  | $ | 7,083 |
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 is as follows:
| Years ended December 31,
| 2023 |  | 2022 |  | 2021 |
Federal statutory rate | 21.0 | % | 21.0 | % | 21.0 | %
Effect of: |  |  |
State income taxes, net of federal benefit | 20.0 |  | 1.5 |  | 4.4 |
Change in foreign income tax rate applied to deferred tax balances | — |  | 0.1 |  | 42.6 |
Change in state income tax rate applied to deferred tax balances | 7.1 |  | 1.8 |  | 2.3 |
Nondeductible security incident-related fines or penalties | 35.7 |  | (8.7) |  | — |
Section 162(m) limitation | 30.1 |  | (6.4) |  | 75.0 |
Stock-based compensation | 13.4 |  | (6.3) |  | (36.2) |
Change in valuation reserve (primarily state credit reserves) | 10.8 |  | (5.4) |  | 26.1 |
GILTI inclusion | 9.3 |  | (2.6) |  | — |
Foreign tax rate | 6.1 |  | 1.0 |  | (6.0) |
Nondeductible meals, entertainment and transportation | 4.4 |  | (0.7) |  | 1.1 |
Unrecognized tax benefit | 0.7 |  | 0.5 |  | (32.7) |
Acquisition costs | — |  | — |  | 8.7 |
Return to accrual adjustment | (8.3) |  | 1.4 |  | (4.2) |
State credits, net of federal benefit | (9.1) |  | 7.2 |  | (32.6) |
FDII benefit | (10.2) |  | 2.3 |  | — |
Federal credits generated | (42.3) |  | 11.5 |  | (54.5) |
Other | 1.0 |  | 0.1 |  | 4.6 |
Income tax provision effective rate | 89.7 | % | 18.3 | % | 19.6 | %
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) | 2023 |  | 2022 |
Deferred tax assets relating to: |  |
Capitalized R&D and software costs | $ | 47,351 |  | $ | 12,166 |
Federal, state and foreign tax credits | 39,260 |  | 50,194 |
Stock-based compensation | 24,717 |  | 21,166 |
Operating leases | 12,867 |  | 14,024 |
Federal and state and foreign net operating loss carryforwards | 7,061 |  | 10,369 |
Deferred revenue | 5,992 |  | 1,820 |
Allowance for credit losses | 1,702 |  | 1,803 |
Intangible assets | 1,050 |  | 561 |
Accrued bonuses | 314 |  | 455 |
Other | 2,982 |  | 6,293 |
Total deferred tax assets | 143,296 |  | 118,851 |
Deferred tax liabilities relating to: |  |
Intangible assets | (160,172) |  | (161,836) |
Costs of obtaining contracts | (13,870) |  | (16,287) |
Operating leases | (9,865) |  | (11,721) |
Fixed assets | (5,833) |  | (9,827) |
Other | (8,342) |  | (9,016) |
Total deferred tax liabilities | (198,082) |  | (208,687) |
Valuation allowance | (37,862) |  | (34,769) |
Net deferred tax liability | $ | (92,648) |  | $ | (124,605) |
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
2023 | $ | 34,769 |  | $ | — |  | $ | 3,093 |  | $ | 37,862 |
2022 | 31,974 |  | — |  | 2,795 |  | 34,769 |
2021 | 29,184 |  | 893 |  | 1,897 |  | 31,974 |
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, 2023, 2022 and 2021:
| Years ended December 31,
(dollars in thousands) | 2023 |  | 2022 |  | 2021 |
Balance at beginning of year | $ | 3,083 |  | $ | 3,651 |  | $ | 4,625 |
Increases from current period positions | 762 |  | 629 |  | 1,751 |
Increases from prior period positions | 101 |  | 89 |  | 6 |
Decreases in prior year positions | (118) |  | (908) |  | (57) |
Settlements (payments) | (160) |  | — |  | (1,192) |
Lapse of statute of limitations | (428) |  | (378) |  | (1,482) |
Balance at end of year | $ | 3,240 |  | $ | 3,083 |  | $ | 3,651 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration