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Income Taxes (Tables)

12 Months Ended

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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