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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes On December 22, 2017, the 2017 U.S. Tax Cuts and Jobs Act (the “2017 Tax Act”) was signed into law. The 2017 Tax Act included a number of changes to the U.S. Internal Revenue Code, including a reduction of the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017, and a one-time transition tax on certain unrepatriated foreign earnings (the “Transition Tax”). Prospective changes from the 2017 Tax Act that began in 2018 include imposed limitations on the deductibility of executive compensation and interest, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, and a new provision designed to tax global intangible low-taxed income ("GILTI"). The Company has made an accounting policy election to account for the tax effects of the GILTI provision as a period cost. The table below summarizes significant components of deferred tax assets and liabilities.
| Year Ended December 31,
| 2019 |  | 2018
Deferred tax assets |  |  |
Allowance for doubtful accounts | $ | 13,041 |  |  | $ | 11,792 |
Accrued vacation and bonus | 27,438 |  |  | 23,545 |
Deferred rent | — |  |  | 9,016 |
Share-based compensation | 12,647 |  |  | 11,837 |
Notes receivable from employees | 12,187 |  |  | 12,993 |
State net operating loss carryforward | 2,066 |  |  | 3,510 |
Foreign net operating loss carryforward | 9,388 |  |  | 9,857 |
Federal tax credit and capital loss carryforward | 7,336 |  |  | 9,470 |
Deferred compensation | 2,117 |  |  | 1,801 |
Operating lease assets | 43,397 |  |  | — |
Employee benefits obligations | 1,191 |  |  | 943 |
Other, net | 1,898 |  |  | 186 |
Total deferred tax assets | 132,706 |  |  | 94,950 |
Deferred tax liabilities |  |  |
Revenue recognition | (6,732 | ) |  | (5,087 | )
Operating lease liabilities | (29,671 | ) |  | — |
Property and equipment, net | (3,797 | ) |  | (6,652 | )
Equity debt discount | (8,890 | ) |  | (11,014 | )
Goodwill and other intangible assets | (209,250 | ) |  | (199,964 | )
Total deferred tax liabilities | (258,340 | ) |  | (222,717 | )
Foreign withholding tax | (1,195 | ) |  | (413 | )
Valuation allowance | (19,865 | ) |  | (21,929 | )
Net deferred tax liabilities | $ | (146,694 | ) |  | $ | (150,109 | )
As of December 31, 2019 and 2018, the Company recorded certain deferred tax assets related to foreign tax credits, capital losses and foreign net operating loss carryforwards, which can be carried forward for periods ranging from 10 years to indefinite. Based on forward-looking financial information, the Company believes it is not more likely than not that the attributes will be utilized. Therefore, valuation allowances of $19.9 million and $21.9 million are recorded against the Company’s deferred tax assets as of December 31, 2019 and 2018, respectively. As of December 31, 2019, the Company has not recorded a $22.9 million deferred tax liability related to the basis difference in the investment in our foreign subsidiaries, as the investment is considered permanent in nature. The table below summarizes the components of income before income tax provision (benefit) from continuing operations.
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Domestic | $ | 150,860 |  |  | $ | 96,543 |  |  | $ | 30,013 |
Foreign | 137,590 |  |  | 111,249 |  |  | 57,092 |
Total | $ | 288,450 |  |  | $ | 207,792 |  |  | $ | 87,105 |
The table below summarizes the components of income tax provision (benefit) from continuing operations.
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Current |  |  |  |  |
Federal | $ | 30,651 |  |  | $ | 10,847 |  |  | $ | 15,164 |
State | 7,702 |  |  | 4,447 |  |  | 742 |
Foreign | 37,083 |  |  | 21,056 |  |  | 14,816 |
| 75,436 |  |  | 36,350 |  |  | 30,722 |
Deferred |  |  |  |  |
Federal | (1,767 | ) |  | 14,538 |  |  | (47,820 | )
State | 785 |  |  | 503 |  |  | (152 | )
Foreign | (2,730 | ) |  | 5,790 |  |  | (3,607 | )
| (3,712 | ) |  | 20,831 |  |  | (51,579 | )
Income tax provision (benefit) | $ | 71,724 |  |  | $ | 57,181 |  |  | $ | (20,857 | )
Our income tax provision (benefit) from continuing operations resulted in effective tax rates that varied from the statutory federal income tax rate as summarized below.
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Income tax expense at federal statutory rate | $ | 60,575 |  |  | $ | 43,636 |  |  | $ | 30,487 |
State income taxes, net of federal benefit | 8,430 |  |  | 4,950 |  |  | 781 |
Detriment (benefit) from foreign tax rates | 3,425 |  |  | 3,655 |  |  | (8,500 | )
Valuation allowance on foreign net operating loss carryforward | 260 |  |  | (450 | ) |  | 253 |
Other expenses not deductible for tax purposes | 4,362 |  |  | 3,543 |  |  | 2,466 |
Adjustment to reserve for uncertain tax positions | 2,504 |  |  | (132 | ) |  | 456 |
Impact of 2017 U.S. tax reform — deferred tax | — |  |  | (706 | ) |  | (63,525 | )
Impact of 2017 U.S. tax reform — Transition Tax | (1,088 | ) |  | 50 |  |  | 18,655 |
Sale of Ringtail business | (2,097 | ) |  | 3,798 |  |  | — |
Equity-based compensation | (4,447 | ) |  | (1,371 | ) |  | 809 |
Other adjustments, net | (200 | ) |  | 208 |  |  | (2,739 | )
Income tax provision (benefit) | $ | 71,724 |  |  | $ | 57,181 |  |  | $ | (20,857 | )
The income tax expense for the years ended December 31, 2019 and 2018 was $71.7 million and $57.2 million, respectively. The increase in expense is primarily attributable to higher pre-tax income in 2019 as compared with 2018. We file numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many city, state and foreign jurisdictions. We are no longer subject to U.S. federal income tax examinations for years prior to 2015. We are also no longer subject to state and local or foreign tax examinations by tax authorities for years prior to 2013. Our liability for uncertain tax positions was $11.1 million and $3.7 million as of December 31, 2019 and 2018, respectively. The Company does not expect any of the uncertain tax positions to settle within the next 12 months. As of December 31, 2019, our accrual for the payment of tax-related interest and penalties was not significant.

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