XML 43 R29.htm IDEA: XBRL DOCUMENT
v3.22.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | 20. INCOME TAXES For financial reporting purposes, income (loss) from continuing operations before income taxes includes the following components (in thousands):
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
United States income (loss) |  | $ | 121,180 |  |  | $ | 95,115 |  |  | $ | (62,917) |
Foreign income |  | 1,836 |  |  | 1,375 |  |  | 1,069 |
Total income (loss) from continuing operations before income taxes |  | $ | 123,016 |  |  | $ | 96,490 |  |  | $ | (61,848) |
The provision (benefit) for income taxes for 2021, 2020 and 2019 consists of the following (in thousands):
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |  |
Federal |  | $ | 532 |  |  | $ | — |  |  | $ | (49) |
State |  | 4,344 |  |  | 1,316 |  |  | 191 |
Foreign |  | 183 |  |  | 68 |  |  | 136 |
Total current |  | 5,059 |  |  | 1,384 |  |  | 278 |
Deferred: |  |  |  |  |  |
Federal |  | (49,045) |  |  | — |  |  | 612 |
State |  | (4,763) |  |  | — |  |  | 172 |
Foreign |  | (26) |  |  | (21) |  |  | (2) |
Total deferred |  | (53,834) |  |  | (21) |  |  | 782 |
Total provision (benefit) for income taxes |  | $ | (48,775) |  |  | $ | 1,363 |  |  | $ | 1,060 |
The provision (benefit) for income taxes for 2021, 2020 and 2019 differ from the amounts computed by applying the U.S. federal income tax rate of 21% to income (loss) before income taxes for the following reasons (in thousands):
|  | Year ended December 31,
|  | 2021 |  | 2020 |  | 2019
U.S. federal income tax provision (benefit) at statutory rate |  | $ | 25,833 |  |  | $ | 20,263 |  |  | $ | (12,988) |
State income tax expense, net of federal benefit |  | 5,734 |  |  | 3,224 |  |  | (2,373) |
Non-deductible executive compensation |  | 1,908 |  |  | 147 |  |  | — |
Other, net |  | 110 |  |  | (165) |  |  | 399 |
Gain on subsidiary stock |  | — |  |  | 360 |  |  | (855) |
Delaware gift card litigation reversal |  | — |  |  | (1,022) |  |  | — |
Research and development credit |  | (1,419) |  |  | (1,266) |  |  | (1,677) |
Stock based compensation expense |  | (3,851) |  |  | 1,839 |  |  | 976 |
Change in valuation allowance |  | (77,090) |  |  | (22,017) |  |  | 17,578 |
Total provision (benefit) for income taxes |  | $ | (48,775) |  |  | $ | 1,363 |  |  | $ | 1,060 |
The components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands):
|  | December 31,
|  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Net operating loss carryforwards |  | $ | 35,247 |  |  | $ | 88,990 |
Research and development tax credits |  | 19,551 |  |  | 20,067 |
Basis difference in equity securities |  | 6,092 |  |  | 8,079 |
Accrued expenses |  | 5,750 |  |  | 7,168 |
Unearned revenue |  | 5,431 |  |  | 4,747 |
Operating lease liabilities |  | 3,128 |  |  | 6,604 |
Reserves and other |  | 2,835 |  |  | 3,877 |
Other tax credits and carryforwards |  | 207 |  |  | 253 |
Intangible assets |  | 135 |  |  | 2,897 |
Interest expense carryforward |  | — |  |  | 1,799 |
Gross deferred tax assets |  | 78,376 |  |  | 144,481 |
Valuation allowance |  | (11,384) |  |  | (134,305) |
Total deferred tax assets |  | 66,992 |  |  | 10,176 |
Deferred tax liabilities: |  |  |  |
Basis difference in equity securities |  | (20,831) |  |  | (218) |
Operating lease right-of-use assets |  | (3,077) |  |  | (6,152) |
Fixed assets |  | (2,264) |  |  | (2,236) |
Prepaid expenses |  | (785) |  |  | (777) |
Goodwill |  | — |  |  | (934) |
Total deferred tax liabilities |  | (26,957) |  |  | (10,317) |
Total deferred tax assets (liabilities), net |  | $ | 40,035 |  |  | $ | (141) |
The components of our deferred tax assets and liabilities as of December 31, 2020 include amounts related to continuing and discontinued operations. Of the total deferred tax liabilities, net, approximately $178,000 relates to discontinued operations, and has been reclassified in the consolidated financial statements as a component of Long-term liabilities of discontinued operations as of December 31, 2020. The remaining deferred tax assets, net, of approximately $37,000 related to continuing operations is reflected as Deferred tax assets, net, on the Consolidated Balance Sheet as of December 31, 2020. At December 31, 2021, we have federal net operating loss carryforwards with no expiration date of approximately $135.2 million; the utilization of these net operating loss carryforwards is limited to 80% of taxable income in any given year. We have state net operating loss carryforwards with no expiration date of approximately $37.4 million primarily in the state of Utah; the utilization of these net operating loss carryforwards is limited to 80% of taxable income in the state in any given year. We also have state net operating loss carryforwards of approximately $16.2 million which expire in 2022 and $89.2 million that expire between 2026 and 2039. At December 31, 2021, we have federal research credit carryforwards of approximately $21.4 million that expire between 2029 and 2041. We also have state research credit carryforwards of approximately $9.0 million that expire between 2022 and 2035. Ownership changes under Internal Revenue Code Section 382 could limit the amount of net operating losses or credit carryforwards that can be used in the future. Each quarter we assess the recoverability of our deferred tax assets under ASC Topic 740. We assess available positive and negative evidence to estimate whether we will generate sufficient future taxable income to use our existing deferred tax assets. We have no carryback ability, and therefore we must rely on future taxable income, including tax planning strategies and future reversals of taxable temporary differences, to support their realizability. In our assessment for the period ended June 30, 2021, we concluded it was more likely than not that our deferred tax assets related to United States federal ordinary income and all states with the exception of Utah will be realizable. In reaching the conclusion that deferred tax assets related to United States federal income and all states, except for Utah, will be realizable, we considered, among other things, three significant pieces of positive evidence that occurred during the quarter ended June 30, 2021: 1) achieving three-year cumulative earnings, 2) recent use of deferred tax assets, and 3) changes in our tax filing groups in conjunction with the Pelion Transaction. Therefore, in the year ended December 31, 2021, we released approximately $53.8 million of valuation allowance. We still maintain a valuation allowance against our deferred tax assets for capital losses and the state of Utah where not supported by future reversals of taxable temporary differences, because of the uncertainty regarding the realizability of these deferred tax assets. We will continue to monitor the need for a valuation allowance against our remaining deferred tax assets on a quarterly basis. A reconciliation of the beginning and ending unrecognized tax benefits, excluding interest and penalties, as of December 31, 2021, 2020 and 2019 is as follows (in thousands):
|  | Year ended December 31,
|  | 2021 |  | 2020 |  | 2019
Beginning balance |  | $ | 9,638 |  |  | $ | 9,058 |  |  | $ | 7,974 |
Additions for tax positions related to the current year |  | 1,992 |  |  | 971 |  |  | 1,064 |
Additions (reductions) for tax positions taken in prior years |  | 331 |  |  | (35) |  |  | 20 |
Reduction due to settlements |  | — |  |  | (301) |  |  | — |
Reduction due to cash payments |  | — |  |  | (55) |  |  | — |
Ending balance |  | $ | 11,961 |  |  | $ | 9,638 |  |  | $ | 9,058 |
Included in the balance of unrecognized tax benefits as of December 31, 2021, 2020 and 2019, are approximately $12.0 million, $9.6 million, and $9.1 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate. We believe it is reasonably possible that these unrecognized tax benefits will continue to increase in the future. Accrued interest and penalties on unrecognized tax benefits as of December 31, 2021 and 2020 were $753,000 and $340,000, respectively. We are subject to taxation in the United States and various state and foreign jurisdictions. Tax years beginning in 2017 are subject to examination by taxing authorities, although net operating loss and credit carryforwards from all years are subject to examinations and adjustments for at least three years following the year in which the attributes are used. We have indefinitely reinvested foreign earnings of $5.7 million at December 31, 2021. We would need to accrue and pay various taxes on this amount if repatriated. We do not intend to repatriate these earnings.

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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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