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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Loss Before Provision for Income Taxes | Our loss from continuing operations before income taxes was as follows (in thousands):
| For the Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Domestic | $ | (66,055) |  |  | $ | (32,719) |  |  | $ | (332,373) |
Foreign | 3,978 |  |  | 2,918 |  |  | 1,833 |
Loss from continuing operations before income taxes | $ | (62,077) |  |  | $ | (29,801) |  |  | $ | (330,540) |
Components of Income Tax Expense (Benefit) | Components of income tax expense (benefit) (in thousands) consist of the following:
| For the Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Current |  |  |  |  |
Federal | $ | (875) |  |  | $ | (1,469) |  |  | $ | (2,305) |
State and local | 1,788 |  |  | 1,449 |  |  | 200 |
Foreign | 1,318 |  |  | 1,027 |  |  | 721 |
Total current tax expense (benefit) | 2,231 |  |  | 1,007 |  |  | (1,384) |
Deferred |  |  |  |  |
Federal | 5,055 |  |  | (5,866) |  |  | (38,258) |
State and local | (2,790) |  |  | (4,021) |  |  | (9,565) |
Foreign | 92 |  |  | (493) |  |  | (303) |
Total deferred tax expense (benefit) | 2,357 |  |  | (10,380) |  |  | (48,126) |
Change in valuation allowance | (47,964) |  |  | 9,856 |  |  | 47,142 |
Total tax expense (benefit) | $ | (43,376) |  |  | $ | 483 |  |  | $ | (2,368) |
Schedule of Reconciliation of the U.S. Statutory Tax Rate to our Effective Tax Rate | A reconciliation of the U.S. statutory tax rate to our effective tax rate is presented below:
| For the Year Ended December 31,
| 2022 |  | 2021 |  | 2020
U.S. statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
U.S. state income taxes, net of U.S. federal tax benefit | (0.6) | % |  | 1.9 | % |  | 2.9 | %
Foreign earnings at other than U.S. rates | (0.8) | % |  | 0.3 | % |  | — | %
Change in valuation allowance | 77.3 | % |  | (33.1) | % |  | (14.3) | %
Benefit of net operating loss carryback provision | — | % |  | — | % |  | 1.1 | %
Non-deductible goodwill impairment | — | % |  | — | % |  | (11.5) | %
Non-deductible excess compensation | (27.8) | % |  | (10.1) | % |  | (0.3) | %
Excess tax benefits (shortfalls) on stock-based compensation | 12.2 | % |  | 8.1 | % |  | (0.3) | %
Convertible debt extinguishment | (3.4) | % |  | (1.5) | % |  | — | %
Change in uncertain tax positions | (1.1) | % |  | 0.2 | % |  | — | %
Nondeductible transaction costs | (1.7) | % |  | — | % |  | — | %
Change in state rate | 5.2 | % |  | 6.8 | % |  | 1.3 | %
Return to provision | (1.1) | % |  | 6.6 | % |  | (0.8) | %
Change in indefinite reinvestment assertion for domestic subsidiaries | — | % |  | — | % |  | 1.0 | %
Tax sharing settlement | — | % |  | (1.1) | % |  | — | %
Tax receivable agreement | (9.1) | % |  | — | % |  | — | %
Other, net | (0.2) | % |  | (0.7) | % |  | 0.6 | %
Effective tax rate | 69.9 | % |  | (1.6) | % |  | 0.7 | %
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows:
| As of December 31,
| 2022 |  | 2021
Deferred Tax Assets |  |  |
Start-up and organizational costs | $ | 84 |  |  | $ | 103 |
Goodwill | 12,281 |  |  | 18,774 |
Operating lease liabilities | 16,362 |  |  | 15,968 |
Accrued expenses | 9,326 |  |  | 10,345 |
Stock based compensation | 1,263 |  |  | 8,714 |
Net operating loss carryforwards | 131,317 |  |  | 130,242 |
Federal and state research tax credits | 1,828 |  |  | 1,828 |
Fixed assets | 393 |  |  | 480 |
Interest deduction limitation | 7,089 |  |  | 7,795 |
Outside basis differences | 650 |  |  | 1,972 |
Other | 6,677 |  |  | 9,236 |
Subtotal | 187,270 |  |  | 205,457 |
Valuation allowance | (70,790) |  |  | (101,345) |
Total deferred tax assets | 116,480 |  |  | 104,112 |
Deferred Tax Liabilities |  |  |
Internally developed software costs | 11,173 |  |  | 12,501 |
Intangible assets | 89,784 |  |  | 48,677 |
Right-of-use assets - Operating | 12,696 |  |  | 12,284 |
Contract fulfillment costs | 4,501 |  |  | 8,317 |
Convertible debt | — |  |  | 17,604 |
Other | 2,136 |  |  | 5,387 |
Total deferred tax liabilities | 120,290 |  |  | 104,770 |
Net deferred tax assets (liabilities) | $ | (3,810) |  |  | $ | (658) |
Changes in our valuation allowance (in thousands) were as follows:
| For the Year Ended December 31,
| 2022 |  | 2021
Balance at beginning-of-year | $ | 101,345 |  |  | $ | 89,723 |
Charged (credited) to costs and expenses | (47,964) |  |  | 9,856 |
Charged to other accounts (1) | 17,409 |  |  | 1,766 |
Balance at end-of-year | $ | 70,790 |  |  | $ | 101,345 |
______________ (1)Amounts charged to other accounts includes $17.3 million charged to shareholders’ equity and $0.1 million charged to discontinued operations for the year ended December 31, 2022 and $1.8 million charged to discontinued operations for the year ended December 31, 2021.
Changes in Unrecognized Tax Benefits | Changes in our unrecognized tax benefits (in thousands) were as follows:
| For the Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Balance at beginning-of-year | $ | 609 |  |  | $ | 678 |  |  | $ | 753 |
Gross increases - tax positions in prior period | 616 |  |  | — |  |  | — |
Gross increases - tax positions in current period | 399 |  |  | — |  |  | — |
Lapse of statute of limitations | — |  |  | (69) |  |  | (75) |
Balance at end-of-year | $ | 1,624 |  |  | $ | 609 |  |  | $ | 678 |

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