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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Provision for Income Tax | The provision for income tax consisted of the following (in thousands):
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 20,943 |  |  | $ | 23,306 |  |  | $ | 17,233 |
State | 5,223 |  |  | 4,774 |  |  | (617) |
Foreign | 36,387 |  |  | 15,988 |  |  | 3,094 |
Total current | 62,553 |  |  | 44,068 |  |  | 19,710 |
Deferred: |  |  |  |  |
Federal | (6,173) |  |  | (1,903) |  |  | 16,083 |
State | 694 |  |  | (5,620) |  |  | 2,965 |
Foreign | 11,319 |  |  | (55,921) |  |  | 6,002 |
Total deferred | 5,840 |  |  | (63,444) |  |  | 25,050 |
Total provision | $ | 68,393 |  |  | $ | (19,376) |  |  | $ | 44,760 |
Reconciliation of Statutory Federal Income Tax Rate with Effective Income Tax Rate | A reconciliation of the statutory federal income tax rate with J2 Global’s effective income tax rate is as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Statutory tax rate | 21 | % |  | 21 | % |  | 21 | %
State income taxes, net | 1.5 |  |  | 0.9 |  |  | 1.2 |
Foreign rate differential | (0.1) |  |  | (3.8) |  |  | (7.7) |
Foreign income inclusion | 0.8 |  |  | 1.4 |  |  | 1.5 |
Foreign tax credit | (1.3) |  |  | (0.9) |  |  | (1.4) |
Reserve for uncertain tax positions | 3.5 |  |  | (0.4) |  |  | 4.1 |
Valuation allowance | 3.7 |  |  | 0.2 |  |  | 0.2 |
Intra-entity tax benefit | — |  |  | (26.9) |  |  | — |
Impact on deferred taxes of enacted tax law and rate changes | 1.1 |  |  | (1.3) |  |  | 0.1 |
Contingent liabilities | — |  |  | 0.6 |  |  | 2.4 |
Unrecognized loss on intercompany sale | — |  |  | — |  |  | 1.9 |
Other | (0.5) |  |  | (0.5) |  |  | 1.9 |
Effective tax rates | 29.7 | % |  | (9.7) | % |  | 25.2 | %
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities result from differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows (in thousands):
| Years Ended December 31,
| 2020 |  | 2019
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 21,183 |  |  | $ | 43,352 |
Tax credit carryforwards | 9,022 |  |  | 4,152 |
Accrued expenses | 19,572 |  |  | 9,946 |
Allowance for bad debt | 4,366 |  |  | 2,547 |
Share-based compensation expense | 5,923 |  |  | 4,669 |
Impairment of investments | 6,762 |  |  | 1,675 |
Deferred revenue | 1,334 |  |  | — |
State taxes | 5,124 |  |  | 3,206 |
Other | 12,045 |  |  | 9,958 |
| 85,331 |  |  | 79,505 |
Less: valuation allowance | (8,307) |  |  | (608) |
Total deferred tax assets | $ | 77,024 |  |  | $ | 78,897 |
Deferred tax liabilities: |  |  |
Basis difference in property and equipment | $ | (18,995) |  |  | $ | (15,767) |
Basis difference in intangible assets | (93,162) |  |  | (42,880) |
Prepaid insurance | (2,905) |  |  | (1,847) |
Convertible debt | (65,192) |  |  | (65,217) |
Other | (2,925) |  |  | (663) |
Total deferred tax liabilities | (183,179) |  |  | (126,374) |
Net deferred tax liabilities | $ | (106,155) |  |  | $ | (47,477) |
Reconciliation of Unrecognized Tax Benefits | The aggregate changes in the balance of unrecognized tax benefits, which excludes interest and penalties, for 2020, 2019 and 2018, is as follows (in thousands):
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Beginning balance | $ | 46,703 |  |  | $ | 51,271 |  |  | $ | 45,012 |
Increases related to tax positions during a prior year | 3,952 |  |  | 5,285 |  |  | 2,508 |
Decreases related to tax positions taken during a prior year | (245) |  |  | (7,441) |  |  | — |
Increases related to tax positions taken in the current year | 4,299 |  |  | 4,069 |  |  | 3,751 |
Settlements | (5,627) |  |  | (5,831) |  |  | — |
Decreases related to expiration of statute of limitations | — |  |  | (650) |  |  | — |
Ending balance | $ | 49,082 |  |  | $ | 46,703 |  |  | $ | 51,271 |

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- 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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- 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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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