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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Income/Loss before Income Tax Expense

The U.S. and foreign components of income/loss before income tax expense for the years ended December 31, 2021, 2020 and 2019 are as follows:

		Year Ended December 31,
		2021				2020				2019
U.S.		$	15,986			$	(5,187	)		$	6,774
Foreign			40,685				(30,035	)			(6,653	)
Total		$	56,671			$	(35,222	)		$	121

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, 2021, 2020 and 2019 are as follows:

		Years Ended December 31,
		2021				2020				2019
Current:
Federal		$	5,857			$	3,670			$	10,311
State and local			1,538				832				2,271
Foreign			(837	)			(1,877	)			(1,687	)
		$	6,558			$	2,625			$	10,895
Deferred:
Federal		$	(1,217	)		$	60			$	(246	)
State and local			(251	)			13				(54	)
Foreign			1,784				(2,265	)			(49	)
		$	316			$	(2,192	)		$	(349	)
Income tax expense		$	6,874			$	433			$	10,546

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,
		2021				2020				2019
U.S. federal statutory income tax		$	11,901			$	(7,397	)		$	25
Decrease in unrecognized tax benefits, net			(5,014	)			(5,661	)			(3,893	)
Foreign operations			(3,211	)			(3,342	)			(3,561	)
Change in tax-related indemnification assets, net			1,053				1,189				740
Non-deductible executive compensation			881				399				1,608
Stock-based compensation tax shortfalls			647				1,485				1,198
(Gain)/loss on revaluation of deferred consideration(1)			(424	)			11,929				2,378
Blended state income tax rate, net of federal benefit			526				(171	)			237
Change in valuation allowance – Capital losses			5				4,448				7,555
Change in valuation allowance – Foreign net operating losses (“NOLs”) and interest carryforwards			—				(2,018	)			3,997
Non-taxable gain on sale – Canadian ETF business			—				(740	)			—
Other differences, net			510				312				262
Income tax expense		$	6,874			$	433			$	10,546

(1) The (gain)/loss 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, 2021, 2020 & 2019 is as follows:

		Years Ended December 31,
		2021				2020				2019
Federal		$	4,258			$	4,470			$	6,990
State and local			1,020				1,353				1,818
Foreign			3,178				4,308				1,252
		$	8,456			$	10,131			$	10,060

Summary of Deferred Tax Asset Recorded

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

		December 31,
		2021				2020
Deferred tax assets:
Capital losses		$	16,601			$	16,596
Accrued expenses			4,993				3,507
NOLs – Foreign			1,934				2,167
Stock-based compensation			1,359				1,922
Goodwill and intangible assets			1,276				1,466
Unrealized losses			614				—
Interest carryforwards			437				2,235
NOLs – U.S.			382				510
Outside basis differences			122				122
Operating lease liabilities			—				4,953
Other			376				111
Deferred tax assets			28,094				33,589
Deferred tax liabilities:
Fixed assets and prepaid assets			257				1,261
Foreign currency translation adjustment			181				293
Unremitted earnings – International subsidiaries			118				138
Allocated equity component of Convertible Notes			—				1,022
Right of use assets – operating leases			—				3,927
Deferred tax liabilities			556				6,641
Total deferred tax assets less deferred tax liabilities			27,538				26,948
Less: Valuation allowance			(18,657	)			(18,885	)
Deferred tax assets, net		$	8,881			$	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:

		Total				Unrecognized Tax Benefits				Interest and Penalties
Balance on January 1, 2020		$	32,101			$	25,998			$	6,103
Decrease - Lapse of statute of limitations(1)			(5,981	)			(4,620	)			(1,361	)
Increases			320				—				320
Foreign currency translation(2)			576				472				104
Balance at December 31, 2020		$	27,016			$	21,850			$	5,166
Decrease - Lapse of statute of limitations(1)			(5,171	)			(3,559	)			(1,612	)
Increases			173				—				173
Foreign currency translation(2)			(93	)			(73	)			(20	)
Balance at December 31, 2021		$	21,925			$	18,218			$	3,707

(1) Recorded as an income tax benefit along with an equal and offsetting amount recorded in other losses and gains, net, to recognize a reduction in the indemnification asset.

(2) The gross unrecognized tax benefits were accrued in British pounds.

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