Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

A summary of the components of the Company’s deferred tax assets at June 30, 2021 and December 31, 2020 are as follows:


	June 30, 2021			December 31, 2020
Deferred tax assets:
Capital losses	$	16,596		$	16,596
Operating lease liabilities		4,747			4,953
Accrued expenses		2,234			3,507
NOLs – Foreign		2,093			2,167
Goodwill and intangible assets		1,371			1,466
Interest carryforwards		1,349			2,235
Stock-based compensation		672			1,922
NOLs – U.S.		382			510
Outside basis differences		122			122
Other		382			111

Deferred tax assets		29,948			33,589

Deferred tax liabilities:
Right of use assets – operating leases		3,767			3,927
Fixed assets and prepaid assets		1,224			1,261
Foreign currency translation adjustment		387			293
Unremitted earnings – International subsidiaries		131			138
Allocated equity component of convertible notes		—			1,022

Deferred tax liabilities		5,509			6,641

Total deferred tax assets less deferred tax liabilities		24,439			26,948
Less: valuation allowance		(18,811	)		(18,885	)

Deferred tax assets, net	$	5,628		$	8,063

Schedule of Changes in Balance of Gross Unrecognized Tax Benefits

The table below sets forth the aggregate changes in the balance of these gross unrecognized tax benefits during the three and six months ended June 30, 2021:


	Total			Unrecognized Tax Benefits			Interest and Penalties
Balance on January 1, 2021	$	27,016		$	21,850		$	5,166
Decrease - Lapse of statute of limitations (1)		(5,171	)		(3,559	)		(1,612	)
Increases		39			—			39
Foreign currency translation (2)		338			273			65

Balance at March 31, 2021	$	22,222		$	18,564		$	3,658
Increases		40			—			40
Foreign currency translation (2)		165			138			27

Balance at June 30, 2021	$	22,427		$	18,702		$	3,725

(1)

Recorded as an income tax benefit of $5,171 during the six months ended June 30, 2021, along with an equal and offsetting amount recorded in other gains and losses, net, to recognize a reduction in the indemnification asset. During the six months ended June 30, 2020, an income tax benefit of $5,981 was recorded along with an equal and offsetting amount in other gains and losses, net.

(2)

The gross unrecognized tax benefits were accrued in British pounds