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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Domestic and Foreign Components of Income before Income Tax Expense | The U.S. and foreign components of (loss)/income before income tax expense for the years ended December 31, 2020, 2019 and 2018 are as follows:
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
U.S. |  | $ | (5,187 | ) |  | $ | 6,774 |  |  | $ | 43,677 |
Foreign |  |  | (30,035 | ) |  |  | (6,653 | ) |  |  | 7,362 |
Total |  | $ | (35,222 | ) |  | $ | 121 |  |  | $ | 51,039 |
Components of Current and Deferred Income Tax Expense | The components of current and deferred income tax expense included in the Consolidated Statement of Operations for years ended December 31, 2020, 2019 and 2018 are as follows:
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,670 |  |  | $ | 10,311 |  |  | $ | 15,805 |
State and local |  |  | 832 |  |  |  | 2,271 |  |  |  | 3,202 |
Foreign |  |  | (1,877 | ) |  |  | (1,687 | ) |  |  | 1,482 |
|  | $ | 2,625 |  |  | $ | 10,895 |  |  | $ | 20,489 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 60 |  |  | $ | (246 | ) |  | $ | (5,318 | )
State and local |  |  | 13 |  |  |  | (54 | ) |  |  | (1,077 | )
Foreign |  |  | (2,265 | ) |  |  | (49 | ) |  |  | 312 |
|  | $ | (2,192 | ) |  | $ | (349 | ) |  | $ | (6,083 | )
Income tax expense |  | $ | 433 |  |  | $ | 10,546 |  |  | $ | 14,406 |
Reconciliation of Statutory Federal Income Tax Rate and Company's Effective Rate | A reconciliation of the statutory federal income tax expense and the Company’s total income tax expense is as follows:
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
U.S. federal statutory income tax |  | $ | (7,397 | ) |  | $ | 25 |  |  | $ | 10,718 |
Loss/(gain) on revaluation of deferred consideration (1) |  |  | 11,929 |  |  |  | 2,378 |  |  |  | (2,570 | )
Decrease in unrecognized tax benefits, net |  |  | (5,661 | ) |  |  | (3,893 | ) |  |  | — |
Change in valuation allowance – Capital losses |  |  | 4,448 |  |  |  | 7,555 |  |  |  | 794 |
Change in valuation allowance – Foreign net operating losses (“NOLs”) and interest carryforwards |  |  | (2,018 | ) |  |  | 3,997 |  |  |  | 3,510 |
Foreign operations |  |  | (3,342 | ) |  |  | (3,561 | ) |  |  | (1,041 | )
Stock-based compensation tax (windfalls)/shortfalls |  |  | 1,485 |  |  |  | 1,198 |  |  |  | (543 | )
Change in tax-related indemnification assets, net |  |  | 1,189 |  |  |  | 740 |  |  |  | — |
Non-taxable gain on sale – Canadian ETF business |  |  | (740 | ) |  |  | — |  |  |  | — |
Non-deductible executive compensation |  |  | 399 |  |  |  | 1,608 |  |  |  | 4 |
Blended state income tax rate, net of federal benefit |  |  | (171 | ) |  |  | 237 |  |  |  | 1,406 |
Non-deductible acquisition and disposition-related costs |  |  | — |  |  |  | — |  |  |  | 1,506 |
Other differences, net |  |  | 312 |  |  |  | 262 |  |  |  | 622 |
Income tax expense |  | $ | 433 |  |  | $ | 10,546 |  |  | $ | 14,406 |
(1) | The loss/(gain) on revaluation is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary that is based in Jersey, a jurisdiction where the Company is subject to a zero percent tax rate.
Schedule of Income Tax Payments By Jurisdiction | A summary of income taxes paid by jurisdiction for the years ended December 31, 2020, 2019 & 2018 is as follows:
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Federal |  | $ | 4,470 |  |  | $ | 6,990 |  |  | $ | 10,710 |
State and local |  |  | 1,353 |  |  |  | 1,818 |  |  |  | 2,498 |
Foreign |  |  | 4,308 |  |  |  | 1,252 |  |  |  | 1,190 |
|  |  | $10,131 |  |  |  | $10,060 |  |  |  | $14,398 |
Summary of Deferred Tax Asset Recorded | A summary of the components of the Company’s deferred tax assets at December 31, 2020 and 2019 is as follows:
|  | December 31, |
|  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Capital losses |  | $ | 16,596 |  |  | $ | 8,226 |
Operating lease liabilities |  |  | 4,953 |  |  |  | 5,529 |
Accrued expenses |  |  | 3,507 |  |  |  | 4,054 |
Interest carryforwards |  |  | 2,235 |  |  |  | 2,615 |
NOLs – Foreign |  |  | 2,167 |  |  |  | 6,721 |
Stock-based compensation |  |  | 1,922 |  |  |  | 1,754 |
Goodwill and intangible assets |  |  | 1,466 |  |  |  | 1,671 |
NOLs – U.S. |  |  | 510 |  |  |  | 642 |
Outside basis differences |  |  | 122 |  |  |  | 123 |
Other |  |  | 111 |  |  |  | 218 |
Deferred tax assets |  |  | 33,589 |  |  |  | 31,553 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Right of use assets – operating leases |  |  | 3,927 |  |  |  | 4,400 |
Fixed assets and prepaid assets |  |  | 1,261 |  |  |  | 1,326 |
Allocated equity component of convertible notes |  |  | 1,022 |  |  |  | — |
Foreign currency translation adjustment |  |  | 293 |  |  |  | — |
Unremitted earnings – International subsidiaries |  |  | 138 |  |  |  | — |
Unrealized gains |  |  | — |  |  |  | 744 |
Deferred tax liabilities |  |  | 6,641 |  |  |  | 6,470 |
Total deferred tax assets less deferred tax liabilities |  |  | 26,948 |  |  |  | 25,083 |
Less: Valuation allowance |  |  | (18,885 | ) |  |  | (17,685 | )
Deferred tax assets, net |  | $ | 8,063 |  |  | $ | 7,398 |
Schedule of Changes in Balance of Gross Unrecognized Tax Benefits | The table below sets forth the aggregate changes in the balance of gross unrecognized tax benefits:
|  | Total |  |  | Unrecognized Tax Benefits |  |  | Interest and Penalties |
Balance on January 1, 2019 |  | $ | 34,876 |  |  | $ | 28,101 |  |  | $ | 6,775 |
Decrease - Lapse of statute of limitations |  |  | (4,309 | ) |  |  | (2,999 | ) |  |  | (1,310 | )
Increases |  |  | 416 |  |  |  | — |  |  |  | 416 |
Foreign currency translation (1) |  |  | 1,118 |  |  |  | 896 |  |  |  | 222 |
Balance at December 31, 2019 |  | $ | 32,101 |  |  | $ | 25,998 |  |  | $ | 6,103 |
Decrease - Lapse of statute of limitations |  |  | (5,981 | ) |  |  | (4,620 | ) |  |  | (1,361 | )
Increases |  |  | 320 |  |  |  | — |  |  |  | 320 |
Foreign currency translation (1) |  |  | 576 |  |  |  | 472 |  |  |  | 104 |
Balance at December 31, 2020 |  | $ | 27,016 |  |  | $ | 21,850 |  |  | $ | 5,166 |
(1) | The gross unrecognized tax benefits were accrued in British pounds.

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