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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The table below summarizes significant components of deferred tax assets and liabilities:
| December 31,
| 2023 |  | 2022
Deferred tax assets |  |  |
Allowance for expected credit losses | $ | 7,597 |  |  | $ | 2,923 |
Accrued vacation and bonus | 47,115 |  |  | 37,776 |
Share-based compensation | 13,857 |  |  | 14,599 |
Notes receivable from employees | 10,770 |  |  | 11,927 |
State net operating loss carryforward | 172 |  |  | 537 |
Foreign net operating and capital loss carryforward | 13,487 |  |  | 11,852 |
Foreign tax credit carryforward | 14,384 |  |  | 4,199 |
Deferred compensation | 3,550 |  |  | 3,049 |
Operating lease assets | 64,649 |  |  | 64,465 |
Employee benefits obligations | 568 |  |  | 519 |
Other, net | 2,691 |  |  | 763 |
Total deferred tax assets | 178,840 |  |  | 152,609 |
Deferred tax liabilities |  |  |
Revenue recognition | (2,427) |  |  | (6,406) |
Operating lease liabilities | (52,673) |  |  | (51,995) |
Property and equipment, net | (13,216) |  |  | (12,956) |
Goodwill and intangible assets | (207,131) |  |  | (204,634) |
Total deferred tax liabilities | (275,447) |  |  | (275,991) |
Foreign withholding tax | (2,178) |  |  | (1,921) |
Valuation allowance | (6,773) |  |  | (6,459) |
Net deferred tax liabilities | $ | (105,558) |  |  | $ | (131,762) |
As of December 31, 2023 and 2022, the Company recorded certain deferred tax assets related to 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 $6.8 million and $6.5 million are recorded against the Company’s deferred tax assets as of December 31, 2023 and 2022, 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 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 table below summarizes the components of income before income tax provision from continuing operations:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Domestic | $ | 247,381 |  |  | $ | 165,553 |  |  | $ | 136,008 |
Foreign | 110,982 |  |  | 132,196 |  |  | 161,939 |
Total | $ | 358,363 |  |  | $ | 297,749 |  |  | $ | 297,947 |
The table below summarizes the components of income tax provision from continuing operations:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | 28,463 |  |  | $ | 24,227 |  |  | $ | 11,050 |
State | 18,878 |  |  | 12,935 |  |  | 8,328 |
Foreign | 38,029 |  |  | 34,917 |  |  | 37,656 |
| 85,370 |  |  | 72,079 |  |  | 57,034 |
Deferred |  |  |  |  |
Federal | 6,363 |  |  | (2,717) |  |  | 10,766 |
State | (3,514) |  |  | (1,173) |  |  | 3,458 |
Foreign | (4,748) |  |  | (5,954) |  |  | (8,277) |
| (1,899) |  |  | (9,844) |  |  | 5,947 |
Income tax provision | $ | 83,471 |  |  | $ | 62,235 |  |  | $ | 62,981 |
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,
| 2023 |  | 2022 |  | 2021
Income tax expense at federal statutory rate | $ | 75,256 |  |  | $ | 62,526 |  |  | $ | 62,569 |
State income taxes, net of federal benefit | 12,562 |  |  | 10,486 |  |  | 8,643 |
Detriment from foreign tax rates | 9,418 |  |  | 5,811 |  |  | 4,375 |
Other expenses not deductible for tax purposes | 5,793 |  |  | 3,365 |  |  | 2,819 |
Adjustment to reserve for uncertain tax positions | (797) |  |  | (609) |  |  | 2,665 |
Share-based compensation | (5,422) |  |  | (9,372) |  |  | (6,167) |
Release of valuation allowance on foreign tax credits | — |  |  | (3,536) |  |  | — |
Income tax benefit related to the License Agreement, net | — |  |  | (2,034) |  |  | — |
Release of valuation allowance on Australian deferred tax asset | — |  |  | — |  |  | (5,063) |
U.S. foreign tax credits | (9,464) |  |  | (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 | (3,875) |  |  | (353) |  |  | (2,370) |
Income tax provision | $ | 83,471 |  |  | $ | 62,235 |  |  | $ | 62,981 |
The income tax provision for the years ended December 31, 2023 and 2022 was $83.5 million and $62.2 million, respectively. The increase in expense is primarily due to an increase in foreign taxes and a less favorable tax benefit related to share-based compensation as compared to 2022 due to fewer shares vesting, which was partially offset by a foreign tax credit benefit. A portion of the increase of the 2023 effective tax rate was related to the 2022 $9.6 million tax benefit related to the release of a U.S. foreign tax credit valuation allowance which did not recur in 2023, utilization of current year foreign tax credits and a deferred tax benefit arising from an intellectual property license agreement between a U.S. subsidiary of the Company and certain foreign subsidiaries of the Company. 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 2015. Our liability for uncertain tax positions was $1.6 million and $3.2 million as of December 31, 2023 and 2022, respectively. As of December 31, 2023, 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://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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