Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income or (Loss) before Income Taxes

Income (loss) before income taxes and equity in losses of unconsolidated investee for the years ended December 31, 2022, 2021 and 2020 is summarized as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
United States	$	(1,837)	$	(15,155)	$	(40,278)
Foreign	5,729		4,653		2,260
Total income (loss) before income taxes	$	3,892	$	(10,502)	$	(38,018)

Components of the (Benefit from) Provision for Income Taxes

The components of the (benefit from) provision for income taxes are summarized as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	1,672	$	44	$	(302)
State	1,428		439		357
Foreign	1,725		1,345		907
Total current	$	4,825	$	1,828	$	962
Deferred:
Federal	1,905		(13,698)		(18,129)
State	(360)		(1,131)		(1,488)
Foreign	(476)		(124)		(106)
Total deferred	$	1,069	$	(14,953)	$	(19,723)
Provision for (benefit from) income taxes	$	5,894	$	(13,125)	$	(18,761)

Schedule of Effective Income Tax Reconciliation

The Company’s actual (benefit from) or provision for tax differed from the amounts computed by applying the Company’s U.S. federal statutory income tax rate to pretax income as a result of the following:


	Year Ended December 31,
	2022		2021(1)		2020(1)
Income tax at federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	15.9		7.6		3.2
Rate differential on foreign operations	(11.7)		(2.7)		(0.3)
Foreign taxes	(6.9)		1.3		(1.0)
Mutual agreement procedure adjustment	—		2.1		—
Prepaid tax ASC 810-10	51.9		(0.3)		0.8
Stock-based compensation	72.9		86.1		26.8
Global intangible low-taxed income (“GILTI”)	—		(6.5)		—
Non-deductible parking expenses	6.9		(1.5)		(0.4)
Permanent differences	(3.3)		(1.2)		(1.5)
Other	4.7		0.9		0.7
Change in valuation allowance	—		18.2		—
Effective tax rate	151.4	%	125.0	%	49.3	%

(1) The 2020 and 2021 effective tax rate reconciliations have been updated to conform to the 2022 presentation.

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Net operating loss carryforwards	$	37,290	$	55,461
Tax credits	41,934		31,969
Accruals and reserves	9,236		9,521
Capitalized research expenses	22,960		—
Stock-based compensation	12,478		21,886
Translation adjustment	174		173
UNICAP adjustments	10,810		8,715
ASC 842 Lease Liabilities	57,161		41,919
Other	2,727		1,688
Gross deferred tax assets	194,770		171,332
Valuation allowance	(46,693)		(37,110)
Total deferred tax assets	148,077		134,222
Deferred tax liabilities:
Depreciation and amortization	(29,781)		(28,159)
ASC 842 Lease ROU Assets	(54,786)		(40,645)
Other	(257)		(1,171)
Total deferred tax liabilities	(84,824)		(69,975)
Net deferred tax assets	$	63,253	$	64,247

Summary of Valuation Allowance

The change in the Company’s deferred tax valuation allowance against net DTAs from January 1, 2020 to December 31, 2022, is as follows (in thousands):


	Beginning Balance		Additions Charged To Expenses or Other Accounts(1)		Deductions Credited to Expenses or Other Accounts(2)		Ending Balance
For the year ended:
December 31, 2020	$	21,558	$	7,322	$	(112)	$	28,768
December 31, 2021	28,768		10,386		(2,044)		37,110
December 31, 2022	37,110		9,583		—		46,693

(1) Additions include current year additions charged to expenses and current year build due to increases in net DTAs, return to provision true-ups, and other adjustments.

(2) Deductions include current year releases credited to expenses and current year reductions due to decreases in net DTAs, return to provision true-ups, and other adjustments.

Schedule of Unrecognized Tax Benefits

A reconciliation of the change in the gross unrecognized tax benefits from January 1, 2020 to December 31, 2022, is as follows (in thousands):


	December 31,
	2022		2021		2020
Beginning Balance	$	9,026	$	8,625	$	6,075
Gross increase for tax positions of current year	1,842		1,935		2,389
Gross increase for tax positions of prior years	481		216		304
Gross decrease for tax positions of prior years	(112)		(1,411)		(143)

Settlement with taxing authority	—		(339)		—

Ending Balance	$	11,237	$	9,026	$	8,625