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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

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