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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income or (loss) from continuing operations before income taxes are as follows:
| Year ended December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (Restated) |  | (Restated)
Domestic | $ | (210,214 | ) |  | $ | (116,730 | ) |  | $ | (22,237 | )
Foreign | (18,873 | ) |  | (10,359 | ) |  | (17,933 | )
Total | $ | (229,087 | ) |  | $ | (127,089 | ) |  | $ | (40,170 | )
The components of income tax (expense) benefit from continuing operations are as follows:
| Year ended December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (Restated) |  | (Restated)
Current: |  |  |  |  |
Federal | $ | 600 |  |  | $ | 4,695 |  |  | $ | 1,866 |
State | — |  |  | 2,098 |  |  | 299 |
Foreign | (4,817 | ) |  | (2,743 | ) |  | (1,847 | )
Deferred: |  |  |  |  |
Federal | 40,634 |  |  | 26,074 |  |  | 2,473 |
State | 1,340 |  |  | 1,301 |  |  | 103 |
Foreign | (2,894 | ) |  | 1,795 |  |  | (506 | )
Income tax benefit | $ | 34,863 |  |  | $ | 33,220 |  |  | $ | 2,388 |
Reconciliations of the statutory tax rates and the effective tax rates from continuing operations for the years ended December 31, 2017, 2016 and 2015 are as follows:
| Year ended December 31,
| 2017 |  | 2016 |  | 2015
|  |  | (Restated) |  | (Restated)
Statutory rate | 35 | % |  | 35 | % |  | 35 | %
State taxes, net of federal benefit | 1 | % |  | 3 | % |  | 1 | %
Effect of rates different than statutory | (2 | )% |  | (2 | )% |  | (10 | )%
Minority interest | (1 | )% |  | (4 | )% |  | (1 | )%
Non-deductible stock based compensation | (2 | )% |  | — | % |  | — | %
Other permanent adjustments | (2 | )% |  | (1 | )% |  | (6 | )%
Research and development credit | — | % |  | 2 | % |  | 5 | %
Change in valuation allowance | (7 | )% |  | (3 | )% |  | (10 | )%
Other | (2 | )% |  | (1 | )% |  | (3 | )%
Tax Reform Rate Reduction | (3 | )% |  | — | % |  | — | %
Acquisitions and restructuring related taxes | (2 | )% |  | (3 | )% |  | (5 | )%
Net | 15 | % |  | 26 | % |  | 6 | %
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:
| December 31,
| 2017 |  | 2016
|  |  | (Restated)
Deferred tax assets: |  |  |
Accrued liabilities | $ | 259 |  |  | $ | 22 |
Deferred revenue | 18,721 |  |  | 52,102 |
Bad debts reserve | 1,103 |  |  | 556 |
Deferred compensation | 5,635 |  |  | 12,431 |
Federal net operating loss carry forwards | 15,324 |  |  | 18,993 |
State net operating loss carry forwards | 4,940 |  |  | 1,737 |
Foreign net operating loss carry forwards | 10,212 |  |  | 13,243 |
Deferred rent | 474 |  |  | 636 |
Capital loss carry forward | 1,541 |  |  | 229 |
Transaction costs | — |  |  | 2,038 |
Other | 2,947 |  |  | 2,155 |
Total deferred tax assets | $ | 61,156 |  |  | $ | 104,142 |
Deferred tax liabilities: |  |  |
Intangible assets | $ | (12,491 | ) |  | $ | (16,014 | )
Basis difference | (6,612 | ) |  | (12,859 | )
Installment sale | (8,909 | ) |  | (23,177 | )
Depreciation and amortization | (14,356 | ) |  | (28,134 | )
Total deferred tax liabilities | (42,368 | ) |  | (80,184 | )
Less: valuation allowance | (32,523 | ) |  | (14,180 | )
Net deferred income tax (liabilities) assets | $ | (13,735 | ) |  | $ | 9,778 |
As of December 31, 2017, the Company has federal and state income tax net operating loss (“NOL”) carryforwards of $72.7 million and $77.8 million, respectively, which will expire at various dates from 2018 through 2037. The Company also has foreign NOL carryforwards in various jurisdictions of $85.6 million that have various carryforward periods. Such NOL carryforwards expire as follows:
2018-2022 | $ | 13,700 |
2023-2027 | 12,669 |
2028-2037 | 127,163 |
Indefinite | 82,612 |
| $ | 236,144 |
In evaluating the Company’s ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results and incorporates assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax-planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company is using to manage the underlying businesses. The foreign NOL carryforwards in the income tax returns filed included unrecognized tax benefits taken in prior years. The NOLs for which a deferred tax asset is recognized for financial statement purposes in accordance with ASC 740 are presented net of these unrecognized tax benefits. The Company continues to evaluate the ability to realize all of its net deferred tax assets at each reporting date and records a benefit for deferred tax assets to the extent it has deferred tax liabilities that provide a source of income to benefit the deferred tax asset. As a result of this analysis, the Company recorded a valuation allowance against the net deferred tax assets of certain foreign jurisdictions as the realization of these assets is not more likely than not, given uncertainty of future earnings in these jurisdictions. The Company is subject to taxation in the United States and various states and foreign jurisdictions. As of December 31, 2017, the Company’s tax years for 2014, 2015 and 2016 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2017, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2013. The Company is currently under income tax examinations in New Jersey for the tax years 2012 through 2014. The Company does not believe that the results of this audit will have a material effect on its financial position or results of operations. In addition, the Company closed the Federal tax examination for the tax years 2013 and 2014 and the New York examination for the tax years 2012 to 2014 with no change. The TCJA included a transition tax based on undistributed, untaxed foreign earnings analyzed in aggregate. The provisional analysis performed by the Company resulted in an overall untaxed deficit and no transition tax. In addition, no income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. Should the Company decide to repatriate the foreign earnings, it would need to adjust its income tax provision in the period it determined that the earnings will no longer be indefinitely invested outside the United States. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practicable to determine the unrecognized deferred tax liability relating to such amounts. A reconciliation of the amounts of unrecognized tax benefits excluding interest, as restated, are as follows:
Unrecognized tax benefit at December 31, 2014 | $ | 3,916 |
Increase for tax positions taken during prior year | 54 |
Reduction due to lapse of applicable statute of limitations | (68 | )
Increases for tax positions of current period | 376 |
Unrecognized tax benefit at December 31, 2015 | 4,278 |
Decreases for tax positions taken during prior year | (35 | )
Reduction due to lapse of applicable statute of limitations | (57 | )
Increases for tax positions of current period | 399 |
Unrecognized tax benefit at December 31, 2016 | 4,585 |
Increase for tax positions taken during prior year | 1,823 |
Increases related to acquired entities | 13,278 |
Reduction due to lapse of applicable statute of limitations | (1,512 | )
Decreases related to divested entities | (13,645 | )
Increases for tax positions of current period | 1,946 |
Unrecognized tax benefit at December 31, 2017 | $ | 6,475 |
Included in the balance of unrecognized tax benefits as of the years ended December 31, 2017, 2016 and 2015, are $7.1 million,$4.8 million and $4.4 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in interest expense. The liability for unrecognized tax benefits excludes accrued interest of $0.6 million, $0.2 million and $0.1 million, for the years ended December 31, 2017, 2016 and 2015, respectively. The Company believes that it is reasonably possible that approximately $2.8 million of its currently unrecognized tax benefits related to transfer pricing reserve and research and development credits, which are individually insignificant, may be recognized by the end of 2018 as a result of a lapse of the statute of limitations.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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