XML 40 R24.htm IDEA: XBRL DOCUMENT
v3.22.4

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income Tax Provision The components of the income tax expense (benefit) are as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | — |  |  | $ | 128 |  |  | $ | (10,705) |
State | 353 |  |  | 262 |  |  | 372 |
Current income tax expense (benefit) | 353 |  |  | 390 |  |  | (10,333) |
Deferred income tax provision (benefit): |  |  |  |  |
Federal | 98,772 |  |  | 9,912 |  |  | (7,495) |
State | 33,894 |  |  | 996 |  |  | (2,133) |
Deferred income tax provision (benefit) | 132,666 |  |  | 10,908 |  |  | (9,628) |
Income tax expense (benefit) | $ | 133,019 |  |  | $ | 11,298 |  |  | $ | (19,961) |
A reconciliation of the income tax expense (benefit) to the amounts computed by applying the statutory federal income tax rate to income (loss) from continuing operations before income taxes is shown as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Federal statutory income tax | $ | (11,538) |  |  | $ | 17,731 |  |  | $ | (8,931) |
State income taxes, net | 365 |  |  | 1,269 |  |  | (3,551) |
Excess tax deductions on non-cash compensation | 4,117 |  |  | (9,401) |  |  | (2,033) |
Impact of the Coronavirus Aid, Relief, and Economic Security Act | — |  |  | — |  |  | (6,104) |
Research and experimentation tax credit | (2,906) |  |  | (3,207) |  |  | (3,800) |
Nondeductible executive compensation | 2,692 |  |  | 3,058 |  |  | 1,778 |
Increase (decrease) in valuation allowance | 139,374 |  |  | 595 |  |  | 2,100 |
Uncertain tax positions | 405 |  |  | 435 |  |  | 458 |
Nondeductible meals & entertainment | 267 |  |  | 239 |  |  | 99 |
Other, net | 243 |  |  | 579 |  |  | 23 |
Income tax expense (benefit) | $ | 133,019 |  |  | $ | 11,298 |  |  | $ | (19,961) |
Deferred Income Taxes The tax effects of cumulative temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands):
| December 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Provision for accrued expenses | $ | 3,257 |  |  | $ | 5,405 |
Leasing | 25,213 |  |  | 27,419 |
Net operating loss carryforwards (a) | 59,302 |  |  | 66,977 |
Capitalized research and experimentation | 17,843 |  |  | — |
Non-cash compensation expense | 30,451 |  |  | 26,756 |
Intangible assets | 10,240 |  |  | 15,222 |
Interest | 30,054 |  |  | 8,036 |
Tax credits | 16,174 |  |  | 15,848 |
Other | 104 |  |  | 1,079 |
Total gross deferred tax assets | 192,638 |  |  | 166,742 |
Less: valuation allowance (b) | (145,401) |  |  | (6,039) |
Total deferred tax assets, net of the valuation allowance | 47,237 |  |  | 160,703 |
Deferred tax liabilities: |  |  |
Leasing | (21,445) |  |  | (24,590) |
Property and equipment | (6,227) |  |  | (8,156) |
Equity investment | (25,756) |  |  | (25,608) |
Other | (592) |  |  | (444) |
Total gross deferred tax liabilities | (54,020) |  |  | (58,798) |
Net deferred taxes | $ | (6,783) |  |  | $ | 101,905 |
(a)At December 31, 2022, the Company had pre-tax consolidated federal net operating losses (“NOLs”) of $187.9 million. The federal NOLs no longer expire under the new TCJA. The Company's NOLs will be available to offset taxable income subject to the Internal Revenue Code Section 382 annual limitation. In addition, the Company has state NOLs of approximately $517.0 million at December 31, 2022 a portion of which will expire at various times between 2023 and 2042. (b)The valuation allowance is related to items for which it is “more likely than not” that the tax benefit will not be realized. Deferred income taxes are presented in the accompanying consolidated balance sheets as follows (in thousands):
| December 31,
| 2022 |  | 2021
Deferred income tax assets | $ | — |  |  | $ | 87,581 |
Non-current assets of discontinued operations | — |  |  | 16,589 |
Deferred income tax liabilities | (6,783) |  |  | (2,265) |
Net deferred taxes | $ | (6,783) |  |  | $ | 101,905 |
Valuation Allowance A valuation allowance is provided on deferred tax assets if it is determined that it is “more likely than not” that the deferred tax asset will not be realized. As of each reporting date, management considers both positive and negative evidence regarding the likelihood of future realization of the deferred tax assets. During 2022, the Company recorded tax expense of $139.4 million to establish a full valuation allowance against its net deferred tax assets due to historical cumulative pre-tax losses and continued pre-tax losses. Management regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing taxable temporary differences, and tax planning strategies. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. In determining the amount of the valuation allowance, the Company considered the scheduled reversal of deferred tax liabilities. The Company will maintain a full valuation allowance on net deferred tax assets until there is sufficient evidence to support the reversal of some or all of the allowance. Should there be a change in the valuation allowance in the future, the income tax provision would increase or decrease in the period in which the allowance is changed. At December 31, 2021 and 2020, the Company recorded a partial valuation allowance of $6.0 million and $5.8 million, respectively, primarily related to state net operating losses, which the Company does not expect to be able to utilize prior to expiration. A reconciliation of the beginning and ending balances of the deferred tax valuation allowance is as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Balance, beginning of the period | $ | 6,039 |  |  | $ | 5,802 |  |  | $ | 4,102 |
Charges to earnings | 139,362 |  |  | 237 |  |  | 1,700 |
Balance, end of the period | $ | 145,401 |  |  | $ | 6,039 |  |  | $ | 5,802 |
Unrecognized Tax Benefits A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021
Balance, beginning of the period | $ | 2,914 |  |  | $ | 2,613 |
Additions based on tax positions of the current period | 405 |  |  | 435 |
Additions (subtractions) based on tax positions of the prior period | (37) |  |  | (134) |
Balance, end of the period | $ | 3,282 |  |  | $ | 2,914 |
Interest and, if applicable, penalties are recognized related to unrecognized tax benefits in income tax expense. Interest and penalties on unrecognized tax benefits included in income tax expense for each of the years ended December 31, 2022, 2021 and 2020 is not required to be recorded, as there have been no tax attributes included in income tax returns filed to date to require consideration of interest expense. As of December 31, 2022 and 2021, the accrual for unrecognized tax benefits, including interest, was $3.3 million and $2.9 million, respectively, which would benefit the effective tax rate if recognized. Tax Audits LendingTree is subject to audits by federal, state and local authorities in the area of income tax. These audits include questioning the timing and the amount of deductions and the allocation of income among various tax jurisdictions. Income taxes payable include amounts considered sufficient to pay assessments that may result from examination of prior year returns; however, any amounts paid upon resolution of issues raised may differ from the amount provided. Differences between the reserves for tax contingencies and the amounts owed by the Company are recorded in the period they become known. As of December 31, 2022, the Company is subject to a federal income tax examination for the tax years 2014 through 2021. In addition, the Company is subject to state and local tax examinations for the tax years 2017 through 2022.

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 The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration