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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The sources of income before income taxes are as follows:
 December 31,
 202420232022
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,
 202420232022
Current
Federal$18,039 $12,009 $13,405 
State and local8,559 4,644 6,748 
Foreign13,856 12,721 8,813 
Current provision for income taxes40,454 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,
 202420232022
Income tax provision at the statutory U.S. federal rate$6,437 $18,621 $24,199 
State income tax provision, net of federal tax benefit3,217 4,974 5,475 
Nondeductible expenses, net10,297 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 impairment6,521 1,522 — 
Other, net620 (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,
 20242023
Deferred tax assets attributable to:
Operating lease liability and accrued rent$17,026 $15,490 
Foreign net operating loss carryforwards12,031 11,658 
Accrued compensation and employee benefits15,971 12,678 
Deferred compensation22,882 19,245 
Foreign tax credit carryforwards6,584 7,820 
Other accrued expenses12,680 10,515 
Deferred tax assets, before valuation allowance87,174 77,406 
Valuation allowance(22,450)(22,233)
Deferred tax assets, after valuation allowance64,724 55,173 
Deferred tax liabilities attributable to:
Operating lease, right-of-use, assets12,382 11,715 
Goodwill9,312 17,731 
Depreciation on property and equipment1,960 2,731 
Other788 1,393 
Deferred tax liabilities24,442 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.