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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note K—Income Taxes The provision for income taxes for the years ended December 31, 2024, 2023, and 2022, consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |  |
Federal |  | $ | 76,083 |  |  | $ | 108,825 |  |  | $ | 137,483 |
State |  | 28,090 |  |  | 38,365 |  |  | 47,032 |
Foreign |  | 20,400 |  |  | 34,885 |  |  | 40,204 |
Deferred: |  |  |  |  |  |
Federal and state |  | (14,512) |  |  | (16,266) |  |  | 13,542 |
Foreign |  | (3,988) |  |  | (372) |  |  | 775 |
|  | $ | 106,073 |  |  | $ | 165,437 |  |  | $ | 239,036 |
Income before the provision for income taxes for the years ended December 31, 2024, 2023, and 2022, consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
U.S. |  | $ | 332,547 |  |  | $ | 485,291 |  |  | $ | 780,624 |
Foreign |  | 25,124 |  |  | 91,292 |  |  | 116,331 |
|  | $ | 357,671 |  |  | $ | 576,583 |  |  | $ | 896,955 |
The income taxes shown above varied from the statutory federal income tax rates for these periods as follows:
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Federal U.S. income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit |  | 5.1 |  |  | 4.7 |  |  | 4.7 |
Permanent book/tax differences |  | 0.7 |  |  | 0.4 |  |  | 0.3 |
Compensation book/tax differences |  | 1.8 |  |  | 1.3 |  |  | 0.7 |
Non-U.S. income taxed at different rates, net of foreign tax credits |  | 2.0 |  |  | 2.5 |  |  | 1.7 |
Federal tax credits |  | (1.0) |  |  | (0.8) |  |  | (1.0) |
Tax impact of uncertain tax positions |  | (0.7) |  |  | (0.1) |  |  | 0.1 |
Other, net |  | 0.8 |  |  | (0.3) |  |  | (0.9) |
Effective tax rate |  | 29.7 | % |  | 28.7 | % |  | 26.6 | %
The deferred portion of the tax provision (benefit) consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Accrued expenses, deducted for tax when paid |  | $ | (23,871) |  |  | $ | (23,456) |  |  | $ | 41,953 |
Internal-use software and capitalized costs |  | (6,677) |  |  | (11,054) |  |  | (7,930) |
Depreciation |  | (1,343) |  |  | (330) |  |  | 4,608 |
Unrealized gains (losses) from investments held in employee deferred compensation trusts |  | 16,578 |  |  | 19,139 |  |  | (26,009) |
Other, net |  | (3,187) |  |  | (937) |  |  | 1,695 |
|  | $ | (18,500) |  |  | $ | (16,638) |  |  | $ | 14,317 |
The components of the deferred income tax amounts at December 31, 2024, and 2023, were as follows (in thousands):
|  | December 31,
|  | 2024 |  | 2023
Deferred income tax assets |  |  |  |
Employee deferred compensation and other benefit obligations |  | $ | 189,407 |  |  | $ | 162,803 |
Deferred revenues, foreign royalties and management fees |  | 72 |  |  | 375 |
Credits and net operating loss carryforwards |  | 31,337 |  |  | 28,137 |
Stock-based compensation |  | 7,440 |  |  | 6,318 |
Allowance for credit losses |  | 5,909 |  |  | 6,825 |
Workers’ compensation |  | 2,467 |  |  | 3,052 |
Operating lease liabilities |  | 43,230 |  |  | 48,358 |
Other |  | 17,010 |  |  | 17,698 |
Total deferred income tax assets |  | 296,872 |  |  | 273,566 |
Deferred income tax liabilities |  |  |  |
Amortization of intangible assets |  | (20,816) |  |  | (20,162) |
Property and equipment basis differences |  | (757) |  |  | (8,612) |
Unrealized gains from investments held in employee deferred compensation trusts |  | (43,709) |  |  | (27,131) |
Right-of-use assets |  | (35,213) |  |  | (38,837) |
Other |  | (12,230) |  |  | (13,258) |
Total deferred income tax liabilities |  | (112,725) |  |  | (108,000) |
Valuation allowance |  | (26,417) |  |  | (25,772) |
Total deferred income tax assets, net |  | $ | 157,730 |  |  | $ | 139,794 |
Credits and net operating loss carryforwards include tax-effected net operating losses in foreign countries of $29.5 million that expire in 2025 and later, and foreign tax credits of $1.8 million that expire in 2029 and later. Valuation allowances of $24.6 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.8 million has been maintained against the foreign tax credits. As of December 31, 2024, the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of international subsidiaries that may be repatriated. The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2022, through December 31, 2024 (in thousands):
|  | 2024 |  | 2023 |  | 2022
Balance at beginning of period |  | $ | 11,133 |  |  | $ | 12,260 |  |  | $ | 11,264 |
Gross increases—tax positions in prior years |  | 1,085 |  |  | 27 |  |  | 1,528 |
Gross decreases—tax positions in prior years |  | 0 |  |  | 0 |  |  | (7) |
Gross increases—tax positions in current year |  | 902 |  |  | 769 |  |  | 1,533 |
Lapse of statute of limitations |  | (4,501) |  |  | (1,923) |  |  | (2,058) |
Balance at end of period |  | $ | 8,619 |  |  | $ | 11,133 |  |  | $ | 12,260 |
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $8.4 million, $11.1 million and $12.3 million for 2024, 2023, and 2022, respectively. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2024, is $1.4 million, including a $0.3 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2023, was $1.0 million, including a $0.4 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2022, was $0.6 million, including a $0.2 million decrease recorded in income tax expense during the year. The Company does not believe it is reasonably possible that the settlement of tax uncertainties will occur within the next 12 months. The Company’s major income tax jurisdictions are the U.S., Australia, Belgium, Brazil, Canada, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2021 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2020 and subsequent years. Generally, for foreign countries, the Company remains subject to examination for 2017 and subsequent years. The Company is currently under audit by the Internal Revenue Service (IRS) for the fiscal year ended December 31, 2021; no material tax adjustments have been identified.

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