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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The sources of income before income taxes are as follows:
|  | December 31,
|  | 2024 |  | 2023 |  | 2022
United States |  | $ | 32,356 |  |  | $ | 52,572 |  |  | $ | 57,274 |
Foreign |  | (1,704) |  |  | 36,099 |  |  | 57,962 |
Income before income taxes |  | $ | 30,652 |  |  | $ | 88,671 |  |  | $ | 115,236 |
The provision for income taxes are as follows:
|  | December 31,
|  | 2024 |  | 2023 |  | 2022
Current |  |  |  |  |  |
Federal |  | $ | 18,039 |  |  | $ | 12,009 |  |  | $ | 13,405 |
State and local |  | 8,559 |  |  | 4,644 |  |  | 6,748 |
Foreign |  | 13,856 |  |  | 12,721 |  |  | 8,813 |
Current provision for income taxes |  | 40,454 |  |  | 29,374 |  |  | 28,966 |
Deferred |  |  |  |  |  |
Federal |  | (13,780) |  |  | 2,996 |  |  | 3,702 |
State and local |  | (2,883) |  |  | 1,334 |  |  | 1,113 |
Foreign |  | (1,867) |  |  | 557 |  |  | 1,969 |
Deferred provision (benefit) for income taxes |  | (18,530) |  |  | 4,887 |  |  | 6,784 |
Total provision for income taxes |  | $ | 21,924 |  |  | $ | 34,261 |  |  | $ | 35,750 |
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,
|  | 2024 |  | 2023 |  | 2022
Income tax provision at the statutory U.S. federal rate |  | $ | 6,437 |  |  | $ | 18,621 |  |  | $ | 24,199 |
State income tax provision, net of federal tax benefit |  | 3,217 |  |  | 4,974 |  |  | 5,475 |
Nondeductible expenses, net |  | 10,297 |  |  | 6,734 |  |  | 4,036 |
Foreign taxes (includes rate differential and changes in foreign valuation allowance) |  | (1,496) |  |  | 4,339 |  |  | 1,647 |
Additional U.S. tax on foreign operations |  | (3,672) |  |  | (300) |  |  | 436 |
Goodwill impairment |  | 6,521 |  |  | 1,522 |  |  | — |
Other, net |  | 620 |  |  | (1,629) |  |  | (43) |
Total provision for income taxes |  | $ | 21,924 |  |  | $ | 34,261 |  |  | $ | 35,750 |
The deferred tax assets and liabilities are attributable to the following components:
|  | December 31,
|  | 2024 |  | 2023
Deferred tax assets attributable to: |  |  |  |
Operating lease liability and accrued rent |  | $ | 17,026 |  |  | $ | 15,490 |
Foreign net operating loss carryforwards |  | 12,031 |  |  | 11,658 |
Accrued compensation and employee benefits |  | 15,971 |  |  | 12,678 |
Deferred compensation |  | 22,882 |  |  | 19,245 |
Foreign tax credit carryforwards |  | 6,584 |  |  | 7,820 |
Other accrued expenses |  | 12,680 |  |  | 10,515 |
Deferred tax assets, before valuation allowance |  | 87,174 |  |  | 77,406 |
Valuation allowance |  | (22,450) |  |  | (22,233) |
Deferred tax assets, after valuation allowance |  | 64,724 |  |  | 55,173 |
Deferred tax liabilities attributable to: |  |  |  |
Operating lease, right-of-use, assets |  | 12,382 |  |  | 11,715 |
Goodwill |  | 9,312 |  |  | 17,731 |
Depreciation on property and equipment |  | 1,960 |  |  | 2,731 |
Other |  | 788 |  |  | 1,393 |
Deferred tax liabilities |  | 24,442 |  |  | 33,570 |
Net deferred tax assets |  | $ | 40,282 |  |  | $ | 21,603 |
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 $22.2 million at December 31, 2023, to $22.5 million at December 31, 2024. The valuation allowance at December 31, 2024, 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, 2024, the Company had a net operating loss carryforward of $90.3 million related to its foreign filings. Of the $90.3 million net operating loss carryforward, $64.1 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 $6.6 million subject to a valuation allowance of $6.6 million. 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 indefinitely or for periods ranging from five to twenty years. The Company also had a foreign tax credit carryforward of $7.8 million subject to a valuation allowance of $7.8 million. As of December 31, 2024, and 2023, the Company does not have any unrecognized tax benefits, due to the settlement of all previous unrecognized tax benefits. In many cases the Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant taxable authorities. The statute of limitations varies by jurisdiction in which the Company operates. Years 2021 through 2023 are subject to examination by the federal and state taxing authorities. The years 2020 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 12 months. No significant increases or decreases in unrecognized tax benefits are expected to occur by December 31, 2025. 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 (Loss). 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, 2024. On December 20, 2021, the Organisation for Economic Co-operation and Development (“OECD”) published Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. A number of countries are currently proposing or have enacted legislation to implement core elements of the Pillar Two proposal. While the Company is still closely monitoring developments and evaluating the potential impact on future periods, the Company does not expect Pillar Two to have a significant impact on its financial results.

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