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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Before Income Taxes | The domestic and foreign components of income before provision for income taxes are as follows for the years ended December 31:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Domestic |  | $ | 83,742 |  |  | $ | 80,372 |  |  | $ | 97,884 |
Foreign |  |  | 12,805 |  |  |  | 3,608 |  |  |  | 2,206 |
Income before income taxes |  | $ | 96,547 |  |  | $ | 83,980 |  |  | $ | 100,090 |
Income Tax Expense Components | Income tax expense consisted of the following for the years ended December 31:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 28,108 |  |  | $ | 8,413 |  |  | $ | 15,961 |
State |  |  | 10,380 |  |  |  | 2,686 |  |  |  | 3,494 |
Foreign |  |  | 2,247 |  |  |  | 1,661 |  |  |  | 687 |
Total current |  |  | 40,735 |  |  |  | 12,760 |  |  |  | 20,142 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (20,279 | ) |  |  | 4,264 |  |  |  | 4,724 |
State |  |  | (6,915 | ) |  |  | 3,607 |  |  |  | 4,395 |
Foreign |  |  | 394 |  |  |  | (894 | ) |  |  | (303 | )
Total deferred |  |  | (26,800 | ) |  |  | 6,977 |  |  |  | 8,816 |
Income tax expense |  | $ | 13,935 |  |  | $ | 19,737 |  |  | $ | 28,958 |
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) consisted of the following at December 31:
|  | 2023 |  |  | 2022 |
Deferred Tax Assets |  |  |  |  |  |
Allowance for expected credit losses |  | $ | 1,213 |  |  | $ | 1,404 |
Accrued paid time off |  |  | 3,039 |  |  |  | 2,801 |
Foreign net operating loss carryforward |  |  | — |  |  |  | 229 |
State net operating loss carryforward |  |  | 500 |  |  |  | 502 |
Stock-based compensation |  |  | 5,523 |  |  |  | 1,586 |
Deferred compensation |  |  | 5,765 |  |  |  | 4,692 |
Foreign tax credits |  |  | 8,035 |  |  |  | 7,236 |
Federal and state tax credits |  |  | 686 |  |  |  | 384 |
Foreign exchange |  |  | 3,591 |  |  |  | 4,532 |
Foreign deferred |  |  | 441 |  |  |  | 875 |
Accrued bonus |  |  | 5,830 |  |  |  | 5,696 |
Capital loss |  |  | 1,054 |  |  |  | — |
Facilities impairment |  |  | 3,092 |  |  |  | 2,650 |
Capitalized research expenses |  |  | 47,019 |  |  |  | 990 |
Accrued liabilities and other |  |  | 2,682 |  |  |  | 5,523 |
Lease liabilities |  |  | 58,538 |  |  |  | 56,695 |
|  |  | 147,008 |  |  |  | 95,795 |
Less: Valuation Allowance |  |  | (9,021 | ) |  |  | (7,607 | )
Total Deferred Tax Assets |  |  | 137,987 |  |  |  | 88,188 |
Deferred Tax Liabilities |  |  |  |  |  |
Retention |  |  | — |  |  |  | (407 | )
Prepaid expenses |  |  | — |  |  |  | (366 | )
Payroll taxes |  |  | (725 | ) |  |  | (697 | )
Unbilled revenue |  |  | (284 | ) |  |  | (409 | )
Depreciation |  |  | (2,128 | ) |  |  | (270 | )
Amortization |  |  | (107,201 | ) |  |  | (99,045 | )
Deferred gain and other |  |  | (2,202 | ) |  |  | (2,561 | )
Lease assets - Right-of-Use |  |  | (51,622 | ) |  |  | (52,471 | )
Total Deferred Tax Liabilities |  |  | (164,162 | ) |  |  | (156,226 | )
Total Net Deferred Tax Liability |  | $ | (26,175 | ) |  | $ | (68,038 | )
Components of Unrecognized Tax Benefits, Excluding Penalty and Interest | The components of unrecognized tax benefits, excluding penalty and interest, are as follows at December 31:
|  | 2023 |  |  | 2022 |
U.S. transfer pricing |  | $ | 145 |  |  | $ | 145 |
India transfer pricing |  |  | 164 |  |  |  | — |
Section 41 tax credit |  |  | 8,736 |  |  |  | — |
Section 174 expense capitalization |  |  | 15,086 |  |  |  |
Total |  | $ | 24,131 |  |  | $ | 145 |
The unrecognized tax benefit reconciliation, excluding penalty and interest, is as follows:
Unrecognized tax benefits at January 1, 2021 |  | $ | 811 |
Decrease attributable to tax positions taken during the current period |  |  | (361 | )
Unrecognized tax benefits at December 31, 2021 |  |  | 450 |
Decrease attributable to tax positions taken during the current period |  |  | (305 | )
Unrecognized tax benefits at December 31, 2022 |  |  | 145 |
Increase attributable to tax positions taken during a prior period |  |  | 19,845 |
Increase attributable to tax positions taken during the current period |  |  | 4,141 |
Unrecognized tax benefits at December 31, 2023 |  |  | 24,131 |
Effective Income Tax Rate Reconciliation | The Company’s provision for income taxes differs from the federal statutory rate. The differences between the statutory rate and the Company’s provision are as follows for the years ended December 31:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Taxes at statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal benefit |  |  | 6.0 | % |  |  | 5.8 | % |  |  | 5.6 | %
Foreign tax rate differential |  |  | (0.2 | )% |  |  | 0.1 | % |  |  | 0.1 | %
Executive compensation |  |  | 1.7 | % |  |  | 2.2 | % |  |  | 2.1 | %
Other permanent differences |  |  | (0.3 | )% |  |  | 2.0 | % |  |  | (0.4 | )%
Global intangible low-taxed income (GILTI) |  |  | 0.3 | % |  |  | — |  |  |  | — |
Prior year tax adjustments |  |  | (6.4 | )% |  |  | (1.1 | )% |  |  | 1.5 | %
Deferred impact of state rate change |  |  | 0.5 | % |  |  | 0.6 | % |  |  | — |
Worthless stock deduction |  |  | (5.1 | )% |  |  | (4.6 | )% |  |  | — |
Unrecognized tax benefits |  |  | 9.0 | % |  |  | (0.4 | )% |  |  | (0.5 | )%
Capital loss |  |  | (3.8 | )% |  |  | — |  |  |  | — |
Valuation allowance |  |  | 2.0 | % |  |  | 0.7 | % |  |  | 1.3 | %
Equity-based compensation |  |  | (1.1 | )% |  |  | (1.3 | )% |  |  | (1.0 | )%
Tax credits |  |  | (9.2 | )% |  |  | (1.5 | )% |  |  | (0.8 | )%
Taxes at effective rate |  |  | 14.4 | % |  |  | 23.5 | % |  |  | 28.9 | %

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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