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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table presents the U.S. and foreign components of earnings before income taxes and the related income tax expense (in thousands):
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Earnings before income taxes: |  |  |  |  |
United States | $ | 263,421 |  |  | $ | 274,415 |  |  | $ | 200,657 |
Foreign | 114,433 |  |  | 100,018 |  |  | 91,900 |
| $ | 377,854 |  |  | $ | 374,433 |  |  | $ | 292,557 |
Income tax expense: |  |  |  |  |
Current: |  |  |  |  |
U.S. Federal | $ | 62,575 |  |  | $ | 61,245 |  |  | $ | 29,478 |
U.S. State and local | 16,764 |  |  | 15,788 |  |  | 7,391 |
Foreign | 30,286 |  |  | 26,043 |  |  | 24,485 |
| 109,625 |  |  | 103,076 |  |  | 61,354 |
Deferred: |  |  |  |  |
U.S. Federal | (10,923) |  |  | (7,267) |  |  | 11,104 |
U.S. State and local | (3,324) |  |  | (1,153) |  |  | 3,239 |
Foreign | 1,167 |  |  | (831) |  |  | (2,485) |
| (13,080) |  |  | (9,251) |  |  | 11,858 |
| $ | 96,545 |  |  | $ | 93,825 |  |  | $ | 73,212 |
The following schedule reconciles the differences between the U.S. federal income taxes at the U.S. statutory rate and our income tax expense (dollars in thousands):
| 2023 |  | 2022 |  | 2021
Statutory federal income tax rate | $ | 79,349 |  |  | 21.0 | % |  | $ | 78,631 |  |  | 21.0 | % |  | $ | 61,437 |  |  | 21.0 | %
State income tax expense, net of federal income tax benefit | 12,113 |  |  | 3.2 |  |  | 13,962 |  |  | 3.7 |  |  | 10,666 |  |  | 3.6 |
Audits and adjustments, net | (925) |  |  | (0.2) |  |  | 2,273 |  |  | 0.6 |  |  | 2,131 |  |  | 0.7 |
Change in valuation allowances | 1,616 |  |  | 0.4 |  |  | (2,551) |  |  | (0.7) |  |  | 1,317 |  |  | 0.5 |
Foreign income taxed at different rates | 6,133 |  |  | 1.6 |  |  | 5,660 |  |  | 1.5 |  |  | 4,308 |  |  | 1.5 |
Research and other credits | (3,036) |  |  | (0.8) |  |  | (3,870) |  |  | (1.0) |  |  | (4,352) |  |  | (1.5) |
Other, net | 1,295 |  |  | 0.4 |  |  | (280) |  |  | — |  |  | (2,295) |  |  | (0.8) |
Effective tax rate | $ | 96,545 |  |  | 25.6 | % |  | $ | 93,825 |  |  | 25.1 | % |  | $ | 73,212 |  |  | 25.0 | %
As of December 31, 2023, we have accumulated undistributed earnings generated by our foreign subsidiaries, most of which have been taxed in the U.S. as a result of the Tax Cuts and Jobs Act of 2017. For foreign subsidiary earnings not yet taxed under these provisions, we continue to assert permanent reinvestment of earnings earned in foreign jurisdictions which impose a withholding tax on dividends and, accordingly, have not accrued any additional income or withholding taxes on the potential repatriation of these earnings. At the present time, given the various complexities involved in repatriating earnings, it is not practicable to estimate the amount of tax that may be payable if these earnings were not reinvested indefinitely. The significant components of deferred tax assets and liabilities are as follows (in thousands):
| December 31,
| 2023 |  | 2022
Deferred tax assets: |  |  |
Capitalized research expenses | $ | 33,569 |  |  | $ | 17,682 |
Loss carryforwards | $ | 25,690 |  |  | $ | 24,571 |
Foreign tax credits | 9,976 |  |  | 10,681 |
Other | 31,246 |  |  | 37,315 |
Gross deferred tax assets | 100,481 |  |  | 90,249 |
Valuation allowances | (33,385) |  |  | (32,546) |
Total deferred tax assets | 67,096 |  |  | 57,703 |
Deferred tax liabilities: |  |  |
Goodwill and other intangibles | (58,512) |  |  | (56,275) |
Property and equipment | (31,194) |  |  | (26,905) |
Other | (1,916) |  |  | (1,744) |
Total deferred tax liabilities | (91,622) |  |  | (84,924) |
Net deferred tax liabilities | $ | (24,526) |  |  | $ | (27,221) |
The net non-current deferred tax assets and liabilities are as follows (in thousands):
| December 31,
| 2023 |  | 2022
Net non-current deferred tax assets, which are included in "Other assets" | $ | 3,062 |  |  | $ | 5,623 |
Net non-current deferred tax liabilities | (27,588) |  |  | (32,844) |
Net deferred tax liabilities | $ | (24,526) |  |  | $ | (27,221) |
As of December 31, 2023, we have U.S. state and foreign net operating loss carryforwards (“NOLs”) that will expire between 2024 and 2042, while the majority have no expiration date. Due to the uncertainty around future utilization, we have recorded a valuation allowance against the majority of these NOLs. W e have provided valuation allowances for certain of our deferred tax assets where we believe it is more likely than not that the related tax benefits will not be realized. At December 31, 2023 and 2022, our valuation allowances totaled $33,385,000 and $32,546,000, respectively, relating primarily to foreign tax credits and NOLs. This increase was primarily the result of foreign NOLs generated during the year for which there is an uncertainty as to future utilization. As of December 31, 2023 and 2022, we had approximately $13,947,000 and $14,814,000, respectively, of unrecognized tax benefits. Of these amounts, approximately $1,767,000 and $1,642,000, respectively, related to accrued interest. The changes in the unrecognized tax benefits balance during the year reflect additions for tax positions taken in prior and current periods, net of reductions related to audit settlements and statute expirations. We are currently under audit in various jurisdictions for tax years 2017 through 2021. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months which could significantly increase or decrease the balance of our gross unrecognized tax benefits. However, based on the status of the various examinations in multiple jurisdictions, an estimate of the range of reasonably possible outcomes cannot be made at this time, but the estimated effect on our income tax expense and net earnings is not expected to be significant. In the U.S., federal income tax returns for years subsequent to 2019 remain open to examination. For state and foreign jurisdictions, the statute of limitations generally varies between three and ten years. However, to the extent allowable by law, the tax authorities may have a right to examine and make adjustment to prior periods when amended returns have been filed, or when net operating losses or tax credits were generated and carried forward for subsequent utilization.

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