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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The table below summarizes significant components of deferred tax assets and liabilities:
 December 31,
 20222021
Deferred tax assets  
Allowance for expected credit losses$2,923 $2,048 
Accrued vacation and bonus37,776 40,608 
Share-based compensation14,599 14,374 
Notes receivable from employees11,927 12,911 
State net operating loss carryforward537 1,125 
Foreign net operating and capital loss carryforward11,852 8,357 
Foreign tax credit carryforward4,199 3,536 
Deferred compensation3,049 534 
Operating lease assets64,465 64,482 
Employee benefits obligations519 340 
Other, net763 4,037 
Total deferred tax assets152,609 152,352 
Deferred tax liabilities
Revenue recognition(6,406)(6,779)
Operating lease liabilities(51,995)(52,087)
Property and equipment, net(12,956)(14,766)
Equity debt discount— (4,214)
Goodwill and intangible assets(204,634)(206,105)
Total deferred tax liabilities(275,991)(283,951)
Foreign withholding tax(1,921)(1,537)
Valuation allowance(6,459)(10,315)
Net deferred tax liabilities$(131,762)$(143,451)
As of December 31, 2022 and 2021, the Company recorded certain deferred tax assets related to foreign tax credits, foreign capital loss and foreign net operating loss carryforwards, which can be carried forward for periods ranging from 9 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 $6.5 million and $10.3 million are recorded against the Company’s deferred tax assets as of December 31, 2022 and 2021, respectively.
As of December 31, 2022, a U.S. subsidiary of the Company (the “Licensor”) entered into an intellectual property license agreement with certain foreign subsidiaries of the Company in consideration of royalty payments that have been partially prepaid (the “License Agreement”). The prepaid royalties remitted to the Licensor are taxable in the U.S. for the year ended December 31, 2022 and represent intangible assets in the foreign subsidiaries that are eliminated in consolidation. The impact on the U.S. current income tax provision was mainly offset by a deferred foreign income tax benefit related to the future tax deductions arising from amortization of intangible assets in the foreign subsidiaries. The License Agreement provides sufficient future taxable income in the U.S. to fully utilize the Company’s existing foreign tax credits in the U.S., which were previously subject to a valuation allowance. The impact on the tax rate for the year ended December 31, 2022 was a combined $9.6 million tax benefit.
During the year ended December 31, 2021, the valuation allowance on the deferred tax assets in Australia was released because of sustained profitability. Additionally, a valuation allowance was recorded in the U.S. on foreign tax credit carryforwards as the Company does not have sufficient foreign source income in the U.S. to fully utilize the foreign tax credits.
As of December 31, 2022, the Company has not recorded a $41.3 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 from continuing operations:
 Year Ended December 31,
 202220212020
Domestic$165,553 $136,008 $122,800 
Foreign132,196 161,939 139,646 
Total$297,749 $297,947 $262,446 
The table below summarizes the components of income tax provision from continuing operations:
 Year Ended December 31,
 202220212020
Current   
Federal$24,227 $11,050 $22,164 
State12,935 8,328 10,257 
Foreign34,917 37,656 29,390 
 72,079 57,034 61,811 
Deferred
Federal(2,717)10,766 3,936 
State(1,173)3,458 362 
Foreign(5,954)(8,277)(14,345)
 (9,844)5,947 (10,047)
Income tax provision$62,235 $62,981 $51,764 
Our income tax provision from continuing operations resulted in effective tax rates that varied from the federal statutory income tax rate as summarized below:
 Year Ended December 31,
 202220212020
Income tax expense at federal statutory rate$62,526 $62,569 $55,114 
State income taxes, net of federal benefit10,486 8,643 10,567 
Detriment from foreign tax rates5,811 4,375 1,175 
Other expenses not deductible for tax purposes3,365 2,819 3,079 
Adjustment to reserve for uncertain tax positions(609)2,665 (1,231)
Share-based compensation(9,372)(6,167)(6,560)
Release of valuation allowance on foreign tax credits(3,536)— (7,336)
Income tax benefit related to the License Agreement, net(2,034)— (3,899)
Release of valuation allowance on Australian deferred tax asset— (5,063)— 
U.S. foreign tax credits(4,049)(4,859)— 
Valuation allowance on U.S. foreign tax credit carryforwards— 3,536 — 
Deferred tax benefit of United Kingdom tax rate change— (3,167)— 
Other adjustments, net(353)(2,370)855 
Income tax provision$62,235 $62,981 $51,764 
The income tax provision for the years ended December 31, 2022 and 2021 was $62.2 million and $63.0 million, respectively. The decrease in expense is primarily attributable to the $9.6 million income tax benefit related to the License Agreement, which was largely offset by the following 2021 favorable one-time tax adjustments: a $5.1 million benefit related to the release of the valuation allowance on our deferred tax assets in Australia because of sustained profitability and a $3.2 million benefit related to the remeasurement of our deferred tax asset related to an intellectual property license between our U.S. and United Kingdom (“U.K.”) subsidiaries due to a future change in the U.K. tax rate.
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 2017. We are also no longer subject to state and local or foreign tax examinations by tax authorities for years prior to 2014.
Our liability for uncertain tax positions was $3.2 million and $6.4 million as of December 31, 2022 and 2021, respectively. As of December 31, 2022, our accrual for the payment of tax-related interest and penalties was not significant