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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 15. Income Taxes The (benefit from) provision for income taxes is as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
(in thousands) |  |  |  |  |  |  |  |  |
Current tax expense (benefit) |  |  |  |  |  |  |  |  |
Federal |  | $ | 23,351 |  |  | $ | 22,085 |  |  | $ | (9,106 | )
State |  |  | 8,148 |  |  |  | 7,667 |  |  |  | 4,710 |
Foreign |  |  | 13,918 |  |  |  | 13,877 |  |  |  | 13,422 |
Total current tax expense |  |  | 45,417 |  |  |  | 43,629 |  |  |  | 9,026 |
Deferred tax (benefit) expense |  |  |  |  |  |  |  |  |
Federal |  |  | (129,055 | ) |  |  | (16,007 | ) |  |  | (6,501 | )
State |  |  | (59,512 | ) |  |  | 5,827 |  |  |  | 868 |
Foreign |  |  | (2,187 | ) |  |  | 168 |  |  |  | (8,724 | )
Total deferred tax benefit |  |  | (190,754 | ) |  |  | (10,012 | ) |  |  | (14,357 | )
Total (benefit from) provision for income taxes |  | $ | (145,337 | ) |  | $ | 33,617 |  |  | $ | (5,331 | )
A reconciliation of the Company's effective income tax rate as compared to the federal statutory income tax rate is as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory U.S. rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State tax, net of federal tax benefit |  |  | 2.7 | % |  |  | 11.7 | % |  |  | (2.4 | )%
Foreign tax, net of federal tax benefit |  |  | (0.2 | )% |  |  | 5.3 | % |  |  | 1.1 | %
Goodwill impairment |  |  | (14.0 | )% |  |  | — |  |  |  | — |
Disallowed executive compensation |  |  | (0.1 | )% |  |  | 2.3 | % |  |  | (3.2 | )%
Equity-based compensation |  |  | — |  |  |  | (2.4 | )% |  |  | (10.4 | )%
Meals and entertainment |  |  | (0.1 | )% |  |  | 1.6 | % |  |  | (0.7 | )%
Contingent consideration fair value adjustment |  |  | — |  |  |  | (1.8 | )% |  |  | (1.3 | )%
Fair value of warrant liability |  |  | 0.3 | % |  |  | 0.2 | % |  |  | (1.6 | )%
Work opportunity tax credit |  |  | 0.2 | % |  |  | (2.5 | )% |  |  | 0.4 | %
Other |  |  | (0.2 | )% |  |  | 1.5 | % |  |  | 0.1 | %
Effective tax rate |  |  | 9.6 | % |  |  | 36.9 | % |  |  | 3.0 | %
The geographic components of income (loss) before income taxes are as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
(in thousands) |  |  |  |  |  |  |  |  |
U.S. sources |  | $ | (1,544,387 | ) |  | $ | 65,202 |  |  | $ | (203,526 | )
Non-U.S. sources |  |  | 21,758 |  |  |  | 25,964 |  |  |  | 23,125 |
(Loss) income before income taxes |  | $ | (1,522,629 | ) |  | $ | 91,166 |  |  | $ | (180,401 | )
Net deferred tax liabilities consist of the following:
|  | December 31, |
(in thousands) |  | 2022 |  |  | 2021 |
Deferred tax assets |  |  |  |  |  |
Accrued liabilities |  | $ | 68,016 |  |  | $ | 78,711 |
Interest expense |  |  | 53,320 |  |  |  | 37,335 |
Right-of-use liabilities |  |  | 14,356 |  |  |  | 9,790 |
Net operating losses |  |  | 7,904 |  |  |  | 10,193 |
Transaction expenses |  |  | 7,649 |  |  |  | 8,192 |
Contingent liabilities |  |  | 3,903 |  |  |  | 7,768 |
Insurance reserves |  |  | 2,522 |  |  |  | 2,138 |
Acquired intangible assets, including goodwill |  |  | 1,487 |  |  |  | 1,182 |
Social security tax deferral |  |  | — |  |  |  | 6,382 |
Other |  |  | 8,293 |  |  |  | 4,534 |
Total deferred tax assets |  |  | 167,450 |  |  |  | 166,225 |
Deferred tax liabilities |  |  |  |  |  |
Acquired intangible assets, including goodwill |  |  | 413,728 |  |  |  | 608,316 |
Interest rate caps |  |  | 12,079 |  |  |  | 2,419 |
Right-of-use assets |  |  | 10,044 |  |  |  | 6,218 |
Debt issuance costs |  |  | 7,532 |  |  |  | 9,629 |
Restructuring expenses |  |  | 3,427 |  |  |  | 4,788 |
Depreciation |  |  | 2,397 |  |  |  | 2,968 |
Other |  |  | 8,545 |  |  |  | 7,397 |
Total deferred tax liabilities |  |  | 457,752 |  |  |  | 641,735 |
Less: deferred income tax asset valuation allowances |  |  | (5,360 | ) |  |  | (6,853 | )
Net deferred tax liabilities |  | $ | 295,662 |  |  | $ | 482,363 |
|  | December 31, |
(in thousands) |  | 2022 |  |  | 2021 |
Reported as: |  |  |  |  |  |
Noncurrent deferred tax asset |  | $ | 2,211 |  |  | $ | 802 |
Noncurrent deferred tax liabilities |  |  | 297,873 |  |  |  | 483,165 |
Net deferred tax liabilities |  | $ | 295,662 |  |  | $ | 482,363 |
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) that was signed into law on March 27, 2020 allows employers to defer payment of a portion of payroll taxes otherwise due on wages paid between the enactment date and December 31, 2020 and remit the deferred payroll taxes in equal amounts on December 31, 2022 and 2021. Under this provision of the CARES Act, the Company has recorded the tax impact of $6.4 million as a deferred tax asset as of December 31, 2021 and no remaining balance as of December 31, 2022. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (“IRA”), which, among other things, imposes a new corporate alternative minimum tax and an excise tax on stock buybacks. The Company did no t have any stock buybacks during the year ended December 31, 2022. The Company held cash and cash equivalents in foreign subsidiaries of $81.8 million and $86.2 million as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the undistributed earnings of the Company’s foreign subsidiaries are $196.4 million and $164.1 million, respectively. The Company has not recorded a deferred tax liability related to undistributed earnings of its foreign subsidiaries as of December 31, 2022, except for a $2.8 million of deferred tax liability recorded as of December 31, 2022 for unremitted earnings in Canada with respect to which the Company no longer has an indefinite reinvestment assertion. Taxes have not been provided on the remaining $125.1 million of undistributed foreign earnings. The incremental tax liability associated with these earnings is expected to be immaterial. The Company evaluates its deferred tax assets, including a determination of whether a valuation allowance is necessary, based upon its ability to utilize the assets using a more likely than not analysis. Deferred tax assets are only recorded to the extent that they are realizable based upon past and future income. As a result of the evaluation, the Company established a valuation allowance of $5.4 million, $6.9 million and $6.7 million on its foreign affiliates’ deferred tax assets as of December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, the Company had $4.9 million of United States Federal Net Operating Losses (“NOL”), $22.6 million state NOLs, and $19.6 million foreign NOLs. The change of ownership provisions of the Tax Reform Act of 1986 may limit utilization of a portion of The Company’s domestic NOLs to future periods. The United States Federal NOLs expire in 2037, $16.0 million of the state NOLs expire between 2023 and 2041 and the remaining $6.6 million of the state NOLs carry forward indefinitely. Foreign NOLs of $7.7 million expire between 2024 and 2032 and the remaining $11.9 million of the foreign NOLs carry forward indefinitely.

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- 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
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