XML 45 R28.htm IDEA: XBRL DOCUMENT v3.22.4

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Net Income from Continuing Operations Before Income Taxes

Income Tax Provision. The components of net income before income taxes are as follows (in thousands):

		2022				2021				2020
Domestic		$	53,251			$	98,261			$	77,721
Australia			(5,851	)			(3,429	)			(2,085	)
India			9,517				5,873				6,245
Ireland			(3,391	)			1,627				874
United Kingdom			2,533				(5,734	)			(4,281	)
Foreign other			4,722				4,348				6,882
Total		$	60,781			$	100,946			$	85,356

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision consists of the following (in thousands):

		2022				2021				2020
Current:
Federal		$	30,012			$	17,012			$	17,760
State			6,517				5,835				5,373
Australia			55				118				40
India			4,370				959				1,788
Ireland			273				561				567
United Kingdom			349				426				357
Foreign other			2,772				1,338				2,026
			44,348				26,249				27,911
Deferred:
Federal			(21,962	)			2,294				(497	)
State			(3,073	)			344				(1,031	)
Australia			(890	)			(180	)			(424	)
India			(1,388	)			368				(387	)
Ireland			(341	)			(150	)			331
United Kingdom			469				(558	)			304
Foreign other			(442	)			248				438
			(27,627	)			2,366				(1,266	)
Total income tax provision		$	16,721			$	28,615			$	26,645

Schedule of Effective Income Tax Rate Reconciliation

The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax is summarized as follows (in thousands):

		2022				2021				2020
Provision at Federal rate of 21%		$	12,764			$	21,199			$	17,925
State income taxes, net of Federal impact			2,079				4,882				3,430
Research and experimentation credits			(1,560	)			(2,062	)			(2,705	)
Stock award vesting			(1,355	)			(538	)			(540	)
Tax uncertainties			(227	)			69				(403	)
Section 162(m) compensation limitation			2,326				1,610				4,494
Foreign rate differential			571				592				462
Valuation allowance for deferred tax assets			638				1,427				1,002
Withholding tax			1,948				2,305				2,572
Other impact of foreign operations			422				(468	)			621
Statutory rate change			303				(299	)			71
Convertible debt premium			(1,017	)			—				—
Other			(171	)			(102	)			(284	)
Total income tax provision		$	16,721			$	28,615			$	26,645

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax assets as of December 31, 2022 and 2021 are as follows (in thousands):

		2022				2021
Deferred income tax assets		$	81,747			$	56,065
Deferred income tax liabilities			(27,733	)			(25,250	)
Valuation allowance			(27,925	)			(29,983	)
Net deferred income tax assets		$	26,089			$	832

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2022 and 2021 are as follows (in thousands):

		2022				2021
Net deferred income tax assets:
Accrued expenses and reserves		$	6,206			$	9,470
Stock-based compensation			5,321				3,807
Software			(855	)			(1,435	)
Client contracts and related intangibles			(9,577	)			(5,993	)
Goodwill			(13,424	)			(11,563	)
Net operating loss carryforwards			27,820				31,548
Property and equipment			(3,789	)			(4,311	)
Deferred revenue			4,882				3,578
State taxes			-				195
Contingent payments			(88	)			(123	)
Foreign exchange gain/loss			1,791				1,064
Operating lease right-of-use assets and lease liabilities			5,872				1,768
Unrecognized tax benefit			408				522
Credits and incentives			374				397
R&D			28,733				554
Other			340				1,337
Total net deferred income tax assets			54,014				30,815
Less: valuation allowance			(27,925	)			(29,983	)
Net deferred income tax assets		$	26,089			$	832

Beginning January 1, 2022, we are required to capitalize certain research and development expenditures in accordance with section 174 of the Internal Revenue Code, as amended by the Tax Cuts and Jobs Act of 2017, instead of previously being allowed to expense. Amortization of such capitalized expenditures are allowed over a 5-year period if incurred domestically or a 15-year period if incurred outside the United States. Of the total R&D related deferred income tax assets (net of applicable amortization) as of December 31, 2022, in the table above, Federal and state was $28.2 million with the remaining amount attributable to foreign R&D credits.

Reconciliation of Beginning and Ending Balances of Liability for Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands):

		2022				2021				2020
Balance, beginning of year		$	2,929			$	1,393			$	1,540
Additions related to prior acquisitions			2				1,508				160
Lapse of statute of limitations			5				(151	)			(313	)
Additions for tax positions of prior years			8				36				111
Reductions for tax positions of prior years			(382	)			(62	)			(105	)
Additions for tax positions of current year			—				205				—
Balance, end of year		$	2,562			$	2,929			$	1,393

X

- Definition

Summary schedule of deferred tax assets and liabilities.

+ References

No definition available.

+ Details

Name:	csgs_SummaryScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	csgs_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(1)(Note 1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration