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INCOME TAXES | 12 Months Ended
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Dec. 31, 2024
INCOME TAXES [ABSTRACT] |
Income Tax Disclosure [Text Block] | (10)INCOME TAXES The sources of pre-tax operating income are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
​ |  | 2024 |  | 2023 |  | 2022 |
Domestic | ​ | $ | (259,737) | ​ | $ | (39,871) | ​ | $ | 52,887 | ​
Foreign | ​ |  | 23,220 | ​ |  | 80,595 | ​ |  | 91,561 | ​
Total | ​ | $ | (236,517) | ​ | $ | 40,724 | ​ | $ | 144,448 | ​
​ The Company’s selection of an accounting policy with respect to both the GILTI and BEAT rules is to compute the related taxes in the period the entity becomes subject to either. A reasonable estimate of the effects of these provisions has been included in the 2024 annual financial statements. During the fourth quarter of 2023, the Company released its indefinite reinvestment assertion related to earnings for all foreign operations. As a result, in 2024, the Company recorded additional taxes of $3.3 million related to the earnings of its foreign subsidiaries as required. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions. No additional income taxes have been provided for any remaining outside basis difference inherent in the Company’s foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. The Company has an estimated $151 million of outside basis differences as of December 31, 2024. Determination of any unrecognized deferred tax liability related to the outside basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates. The Organization for Economic Co-operation and Development (OECD), supported by 140 of their member countries, have agreed to implement a minimum 15% tax rate on certain multinational enterprises and have released model guidance. This global minimum tax, known as the Pillar 2 framework, became effective across various countries in 2024, and each country works to enact legislation influenced by the OECD Pillar 2 rules. The Company does not expect the adoption of the Pillar Two framework to have a material impact on its effective tax rate, but continues to evaluate additional guidance released by the OECD, along with the pending and adopted legislation in each of the countries in which the Company operates. The components of the Company’s Provision for (benefit from) income taxes are as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
​ |  | 2024 |  | 2023 |  | 2022 |
Current provision for (benefit from) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 229 | ​ | $ | 3,625 | ​ | $ | 10,816 | ​
State | ​ |  | — | ​ |  | 1,893 | ​ |  | 5,245 | ​
Foreign | ​ |  | 15,341 | ​ |  | 24,470 | ​ |  | 22,055 | ​
Total current provision for (benefit from) | ​ |  | 15,570 | ​ |  | 29,988 | ​ |  | 38,116 | ​
Deferred provision for (benefit from) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | 51,389 | ​ |  | (14,357) | ​ |  | (3,128) | ​
State | ​ |  | 3,494 | ​ |  | (848) | ​ |  | (192) | ​
Foreign | ​ |  | 3,647 | ​ |  | 7,677 | ​ |  | (7,681) | ​
Total deferred provision for (benefit from) | ​ |  | 58,530 | ​ |  | (7,528) | ​ |  | (11,001) | ​
Total provision for (benefit from) income taxes | ​ | $ | 74,100 | ​ | $ | 22,460 | ​ | $ | 27,115 | ​
​ The following reconciles the Company’s effective tax rate to the federal statutory rate (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
​ |  | 2024 |  | 2023 |  | 2022 |
Income tax per U.S. federal statutory rate (21%, 21%, 21%) | ​ | $ | (49,668) | ​ | $ | 8,552 | ​ | $ | 30,334 | ​
State income taxes, net of federal deduction | ​ |  | (9,581) | ​ |  | (1,355) | ​ |  | 2,717 | ​
Change in valuation allowances | ​ |  | 110,753 | ​ |  | 14,917 | ​ |  | (3,278) | ​
Foreign income taxes at different rates than the U.S. | ​ |  | 7,495 | ​ |  | 208 | ​ |  | 1,202 | ​
Foreign withholding taxes | ​ |  | 3,771 | ​ |  | — | ​ | ​ | — | ​
Taxes related to compensation | ​ | ​ | 3,515 | ​ | ​ | 1,542 | ​ | ​ | (66) | ​
Liabilities for uncertain tax positions | ​ |  | 616 | ​ |  | 1,759 | ​ |  | (1,435) | ​
Impacts of foreign branch operations | ​ | ​ | (2,378) | ​ | ​ | (283) | ​ | ​ | 2,315 | ​
Non-taxable earnings of noncontrolling interest | ​ |  | (1,810) | ​ |  | (1,508) | ​ |  | (2,638) | ​
Foreign dividend less foreign tax credits | ​ |  | (1,209) | ​ |  | (1,294) | ​ |  | (1,616) | ​
Impacts of impairments | ​ |  | 10,586 | ​ | ​ | — | ​ |  | — | ​
State and Federal income tax credits and NOL's | ​ |  | (3,585) | ​ |  | (4,611) | ​ |  | (4,604) | ​
Foreign earnings taxed currently in U.S. | ​ |  | 5,221 | ​ |  | 2,409 | ​ |  | 2,978 | ​
Taxes related to prior year filings | ​ |  | (850) | ​ |  | 675 | ​ | ​ | (432) | ​
Other | ​ |  | 1,224 | ​ |  | 1,449 | ​ |  | 1,638 | ​
Income tax per effective tax rate | ​ | $ | 74,100 | ​ | $ | 22,460 | ​ | $ | 27,115 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Effective tax rate percentage | ​ | ​ | (31.3)% | ​ | ​ | 55.2% | ​ | ​ | 18.8% | ​
​ The Company’s deferred income tax assets and liabilities are summarized as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
​ |  | 2024 |  | 2023 |
Deferred tax assets, gross | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accrued compensation and employee benefits | ​ | $ | 8,436 | ​ | $ | 12,687 | ​
Allowance for credit losses, insurance and other accruals | ​ |  | 6,580 | ​ |  | 7,855 | ​
Amortization of deferred lease liabilities | ​ |  | 15,817 | ​ |  | 21,683 | ​
Net operating losses | ​ |  | 22,099 | ​ |  | 22,241 | ​
Equity compensation | ​ |  | 2,206 | ​ | ​ | — | ​
Customer acquisition and deferred revenue accruals | ​ |  | 13,307 | ​ |  | 15,991 | ​
Federal and state tax credits, net | ​ |  | 8,818 | ​ |  | 3,456 | ​
Investments | ​ | ​ | — | ​ | ​ | 7,626 | ​
Depreciation and amortization | ​ | ​ | 29,059 | ​ | ​ | 19,570 | ​
Unremitted foreign earnings | ​ | ​ | 31,026 | ​ | ​ | 13,412 | ​
Interest expense | ​ | ​ | 30,286 | ​ | ​ | 14,957 | ​
Unrealized gains on derivatives | ​ | ​ | 867 | ​ | ​ | — | ​
Partnership deferred investment | ​ | ​ | 3,464 | ​ | ​ | — | ​
Other | ​ |  | 1,038 | ​ |  | 630 | ​
Total deferred tax assets, gross | ​ |  | 173,003 | ​ |  | 140,108 | ​
Valuation allowances | ​ |  | (157,383) | ​ |  | (39,902) | ​
Total deferred tax assets, net | ​ |  | 15,620 | ​ |  | 100,206 | ​
Deferred tax liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​
Intangible assets | ​ |  | (10,232) | ​ |  | (41,447) | ​
Operating lease assets | ​ |  | (12,559) | ​ |  | (18,362) | ​
Other | ​ |  | (1,789) | ​ |  | (5,383) | ​
Total deferred tax liabilities | ​ |  | (24,580) | ​ |  | (65,192) | ​
Net deferred tax assets | ​ | $ | (8,960) | ​ | $ | 35,014 | ​
​ Quarterly, the Company assesses the likelihood by jurisdiction that its net deferred tax assets will be recovered. Based on the weight of all available evidence, both positive and negative, the Company records a valuation allowance against deferred tax assets when it is more-likely-than-not that a future tax benefit will not be realized. As of December 31, 2024 the Company had approximately $15.1 million of net deferred tax liabilities in the U.S. and $6.2 million deferred tax assets across their foreign operations. As of December 31, 2024 the deferred tax valuation allowance was $157.4 million related primarily to tax losses in jurisdictions which do not meet the “more-likely-than-not” standard under current accounting guidance. When there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurred. In 2024, the Company made adjustments to its deferred tax assets and corresponding valuation allowances. The net change to the valuation allowance consisted of the following: a $115.8 million increase in the United States, a $3.2 million increase in Canada, and a $1.9 million increase in various other jurisdictions for deferred tax assets that do not meet the “more-likely-than-not” standard offset by a $1.3 million decrease of valuation allowance in Canada, and a $2.2 million decrease of valuation allowance in various other jurisdictions related to the utilization or write-off of deferred tax assets. Activity in the Company’s valuation allowance accounts consists of the following (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
​ |  | 2024 |  | 2023 |  | 2022 |
Beginning balance | ​ | $ | 39,902 | ​ | $ | 24,944 | ​ | $ | 29,620 | ​
Additions of deferred income tax expense | ​ |  | 121,085 | ​ |  | 18,410 | ​ |  | 2,248 | ​
Reductions of deferred income tax expense | ​ |  | (3,604) | ​ |  | (3,452) | ​ |  | (6,924) | ​
Ending balance | ​ | $ | 157,383 | ​ | $ | 39,902 | ​ | $ | 24,944 | ​
​ As of December 31, 2024, after consideration of all tax loss carry back opportunities, the Company had tax affected tax loss carry forwards worldwide expiring as follows (in thousands): ​
​ | ​ | ​ | ​
2025 |  | $ | 37
2026 | ​ |  | 603
2027 | ​ |  | 265
2028 | ​ |  | 245
After 2028 | ​ |  | 11,081
No expiration | ​ |  | 9,868
Total | ​ | $ | 22,099
​ The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements under local laws which result in an overall reduced tax rate. These incentives have varying benefit year over year and expire at various times beginning in 2031. The aggregate benefit to income tax expense for the years ended December 31, 2024, 2023 and 2022 was approximately $2.8 million, $2.3 million and $1.6 million, respectively, which had a favorable impact on diluted net income (loss) per share of $0.06, $0.05 and $0.04, respectively. Accounting for Uncertainty in Income Taxes In accordance with ASC 740, the Company has recorded a reserve for uncertain tax positions. The total amount of interest and penalties recognized in the accompanying Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss) as of December 31, 2024, 2023 and 2022 was approximately $3.4 million, $2.7 million and $1.8 million, respectively. The Company had a reserve for uncertain tax benefits, on a net basis, of $6.5 million and $6.6 million for the years ended December 31, 2024 and 2023, respectively. The tabular reconciliation of the reserve for uncertain tax benefits on a gross basis without interest for the three years ended December 31, 2024 is presented below (in thousands): ​
​ | ​ | ​ | ​
Balance as of December 31, 2021 |  | $ | 6,903
Additions for current year tax positions | ​ |  | 143
Reductions in prior year tax positions | ​ |  | (479)
Balance as of December 31, 2022 | ​ |  | 6,567
Additions for current year tax positions | ​ |  | 212
Reductions in prior year tax positions | ​ |  | (203)
Balance as of December 31, 2023 | ​ |  | 6,576
Additions for current year tax positions | ​ |  | 218
Reductions in prior year tax positions | ​ |  | (275)
Balance as of December 31, 2024 | ​ | $ | 6,519
​ At December 31, 2024, the amount of uncertain tax benefits including interest, that, if recognized, would reduce tax expense was $9.9 million. Within the next 12 months, it is expected that the amount of unrecognized tax benefits may be reduced by $9.3 million as a result of the expiration of various statutes of limitation or other confirmations of tax positions. The Company and its domestic and foreign subsidiaries (including Percepta LLC and its domestic and foreign subsidiaries) file income tax returns as required in the U.S. federal jurisdiction and various state and foreign jurisdictions. The following table presents the major tax jurisdictions and tax years that are open as of December 31, 2024 and subject to examination by the respective tax authorities: ​
​ | ​ | ​
Tax Jurisdiction |  | Tax Year Ended
United States |  | 2017, 2018, and 2021 - Present
Netherlands |  | 2020 - Present
India |  | 2017 - Present
Canada |  | 2020 - Present
Mexico |  | 2019 - Present
Philippines |  | 2021 - Present
​ The Company’s U.S. income tax returns filed for the tax years ending December 31, 2017, 2018 and 2021 to present, remain open tax years. The Company has been notified of the intent to audit, or is currently under audit of, income taxes for the United States for tax year 2017 and 2018, and India for tax years 2017 through 2022. Although the outcome of examinations by taxing authorities are always uncertain, it is the opinion of management that the resolution of these audits will not have a material effect on the Company’s Consolidated Financial Statements.

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