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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The sources of income before income taxes are as follows:
 December 31,
 202320222021
United States$52,572 $57,274 $68,122 
Foreign36,099 57,962 37,907 
Income before income taxes$88,671 $115,236 $106,029 

The provision for income taxes are as follows:
 December 31,
 202320222021
Current
Federal$12,009 $13,405 $21,200 
State and local4,644 6,748 9,341 
Foreign12,721 8,813 9,802 
Current provision for income taxes29,374 28,966 40,343 
Deferred
Federal2,996 3,702 (3,373)
State and local1,334 1,113 (1,825)
Foreign557 1,969 (1,688)
Deferred provision (benefit) for income taxes4,887 6,784 (6,886)
Total provision for income taxes$34,261 $35,750 $33,457 
A reconciliation of the provision for income taxes to income taxes at the statutory U.S. federal income tax rate of 21% is as follows:
 December 31,
 202320222021
Income tax provision at the statutory U.S. federal rate$18,621 $24,199 $22,266 
State income tax provision, net of federal tax benefit4,974 5,475 4,994 
Nondeductible expenses, net8,437 4,036 2,833 
Foreign taxes (includes rate differential and changes in foreign valuation allowance)4,158 1,647 1,910 
Release of valuation allowance(185)— (157)
Additional U.S. tax on foreign operations(300)436 242 
Other, net(1,444)(43)1,369 
Total provision for income taxes$34,261 $35,750 $33,457 

The deferred tax assets and liabilities are attributable to the following components:
 December 31,
 20232022
Deferred tax assets attributable to:
Operating lease liability and accrued rent$15,490 $16,693 
Foreign net operating loss carryforwards11,658 14,528 
Accrued compensation and employee benefits12,678 20,776 
Deferred compensation19,245 17,994 
Foreign tax credit carryforwards7,820 5,522 
Other accrued expenses10,515 6,257 
Deferred tax assets, before valuation allowance77,406 81,770 
Valuation allowance(22,233)(20,724)
Deferred tax assets, after valuation allowance55,173 61,046 
Deferred tax liabilities attributable to:
Operating lease, right-of-use, assets11,715 13,020 
Goodwill17,731 9,493 
Depreciation on property and equipment2,731 3,449 
Other1,393 1,592 
Deferred tax liabilities33,570 27,554 
Net deferred tax assets$21,603 $33,492 

The recognition of deferred tax assets is based on management’s belief that it is more likely than not that the tax benefits associated with temporary differences, net operating loss carryforwards and tax credits will be utilized. The Company assesses the recoverability of the deferred tax assets on an ongoing basis. In making this assessment, the Company considers all positive and negative evidence, and all potential sources of taxable income including scheduled reversals of deferred tax liabilities, tax-planning strategies, projected future taxable income and recent financial performance.

The valuation allowance increased from $20.7 million at December 31, 2022, to $22.2 million at December 31, 2023. The valuation allowance at December 31, 2023 was related to foreign net operating loss carryforwards, foreign tax credit carryforwards, and certain foreign deferred tax assets. The Company intends to maintain these valuation allowances until sufficient evidence exists to support their reversal.

At December 31, 2023, the Company had a net operating loss carryforward of $93.3 million related to its foreign filings. Of the $93.3 million net operating loss carryforward, $58.3 million is subject to a valuation allowance. Depending on the tax rules of the tax jurisdictions, the losses can be carried forward for periods ranging from five years to indefinitely. The Company also had a foreign tax credit carryforward of $7.8 million subject to a valuation allowance of $7.8 million.

At December 31, 2022, the Company had a net operating loss carryforward of $103.4 million related to its foreign tax filings. Of the $103.4 million net operating loss carryforward, $64.0 million is subject to a valuation allowance. Depending on the tax rules of the tax jurisdictions, the losses can be carried forward for periods ranging from five years to indefinitely. The Company also had a foreign tax credit carryforward of $5.5 million subject to a valuation allowance of $5.5 million.
As of December 31, 2023, and 2022, the Company does not have any unrecognized tax benefits, due to the settlement of all previous unrecognized tax benefits.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
 December 31,
 202320222021
Gross unrecognized tax benefits at January 1,$— $— $416 
Gross increases for tax positions of prior years— — 6 
Gross decreases for tax positions of prior years— — (14)
Settlements— — (408)
Gross unrecognized tax benefits at December 31,$— $— $— 

In many cases, the Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. The statute of limitations varies by jurisdiction in which the Company operates. Years 2020 through 2022 are subject to examination by federal and state taxing authorities. The years 2019 and prior are subject to examination in certain foreign and state jurisdictions.

The Company is currently under audit by some jurisdictions. It is likely that the examination phase of several of these audits will conclude in the next twelve months. No significant increases or decreases in unrecognized tax benefits are expected to occur by December 31, 2024.

Estimated interest and penalties related to the underpayment of income taxes are classified as a component of the provision for income taxes in the Consolidated Statements of Comprehensive Income.
 
The Company has elected to account for Global Intangible Low-Taxed Income ("GILTI") tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2023.