XML 43 R22.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
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,
| 2023 |  | 2022 |  | 2021
Current income tax expense: |  |  |  |  |
Federal | $ | 1,155 |  |  | $ | — |  |  | $ | 128 |
State | 1,022 |  |  | 353 |  |  | 262 |
Current income tax expense | 2,177 |  |  | 353 |  |  | 390 |
Deferred income tax (benefit) expense: |  |  |  |  |
Federal | (3,383) |  |  | 98,772 |  |  | 9,912 |
State | (1,309) |  |  | 33,894 |  |  | 996 |
Deferred income tax (benefit) expense | (4,692) |  |  | 132,666 |  |  | 10,908 |
Income tax (benefit) expense | $ | (2,515) |  |  | $ | 133,019 |  |  | $ | 11,298 |
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,
| 2023 |  | 2022 |  | 2021
Federal statutory income tax | $ | (26,233) |  |  | $ | (11,538) |  |  | $ | 17,731 |
State income taxes, net | (2,215) |  |  | 365 |  |  | 1,269 |
Excess tax deductions on non-cash compensation | 6,373 |  |  | 4,117 |  |  | (9,401) |
Research and experimentation tax credit | (1,512) |  |  | (2,906) |  |  | (3,207) |
Nondeductible executive compensation | 2,174 |  |  | 2,692 |  |  | 3,058 |
Increase (decrease) in valuation allowance | 17,087 |  |  | 139,374 |  |  | 595 |
Other, net | 1,811 |  |  | 915 |  |  | 1,253 |
Income tax (benefit) expense | $ | (2,515) |  |  | $ | 133,019 |  |  | $ | 11,298 |
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,
| 2023 |  | 2022
Deferred tax assets: |  |  |
Provision for accrued expenses | $ | 1,168 |  |  | $ | 3,257 |
Leasing | 21,263 |  |  | 25,213 |
Net operating loss carryforwards (a) | 47,463 |  |  | 59,302 |
Capitalized research and experimentation | 30,396 |  |  | 17,843 |
Non-cash compensation expense | 28,126 |  |  | 30,451 |
Intangible assets | 11,379 |  |  | 10,240 |
Interest | 21,295 |  |  | 30,054 |
Equity Investment | 4,561 |  |  | — |
Tax credits | 15,385 |  |  | 16,174 |
Other | 95 |  |  | 104 |
Total gross deferred tax assets | 181,131 |  |  | 192,638 |
Less: valuation allowance (b) | (162,504) |  |  | (145,401) |
Total deferred tax assets, net of the valuation allowance | 18,627 |  |  | 47,237 |
Deferred tax liabilities: |  |  |
Leasing | (18,329) |  |  | (21,445) |
Property and equipment | (1,563) |  |  | (6,227) |
Equity investment | — |  |  | (25,756) |
Other | (826) |  |  | (592) |
Total gross deferred tax liabilities | (20,718) |  |  | (54,020) |
Net deferred taxes | $ | (2,091) |  |  | $ | (6,783) |
(a)At December 31, 2023, the Company had pre-tax consolidated federal net operating losses (“NOLs”) of $139.0 million. The federal NOLs no longer expire under the Tax Cuts and Jobs Act. 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 $466.4 million at December 31, 2023, a portion of which will expire at various times between 2024 and 2043. (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,
| 2023 |  | 2022
Deferred income tax assets | $ | — |  |  | $ | — |
Deferred income tax liabilities | (2,091) |  |  | (6,783) |
Net deferred taxes | $ | (2,091) |  |  | $ | (6,783) |
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 2023, the Company continued to maintain 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, 2023 and 2022, the Company recorded a full valuation allowance of $162.5 million and $145.4 million, respectively. A reconciliation of the beginning and ending balances of the deferred tax valuation allowance is as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Balance, beginning of the period | $ | 145,401 |  |  | $ | 6,039 |  |  | $ | 5,802 |
Charges to earnings | 17,103 |  |  | 139,362 |  |  | 237 |
Balance, end of the period | $ | 162,504 |  |  | $ | 145,401 |  |  | $ | 6,039 |
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,
| 2023 |  | 2022
Balance, beginning of the period | $ | 3,282 |  |  | $ | 2,914 |
Additions based on tax positions of the current period | 227 |  |  | 405 |
Additions (subtractions) based on tax positions of the prior period | (85) |  |  | (37) |
Balance, end of the period | $ | 3,424 |  |  | $ | 3,282 |
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 of an immaterial amount has been recognized for the tax year ended December 31, 2022. For the years ended December 31, 2023 and 2021 interest is not currently required to be recorded, as there have been no tax attributes included in income tax returns filed for those tax periods to require consideration of interest expense. As of December 31, 2023 and 2022, the accrual for unrecognized tax benefits, including interest, was $3.4 million and $3.3 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, 2023, the Company is subject to a federal income tax examination for the tax years 2015 through 2022. In addition, the Company is subject to state and local tax examinations for the tax years 2018 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration