Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current:
U.S. federal	$	19,297	$	12,949	$	(7,267)
U.S. state and local	5,033		6,147		4,940
Foreign	54,787		34,506		36,699
UBT	373		(390)		588
	79,490		53,212		34,960
Deferred:
U.S. federal	(41,491)		(17,083)		(1,000)
U.S. state and local	(14,989)		(1,596)		(1,515)
Foreign	(5,914)		3,971		(12,098)
UBT	1,838		80		2,666
	(60,556)		(14,628)		(11,947)
Provision for income taxes	$	18,934	$	38,584	$	23,013

Summary of Actual Income Tax Expense and Amount Calculated Utilizing U.S. Federal Statutory Rates

Differences between the Company’s actual income tax expense and the amount calculated utilizing the U.S. federal statutory rates were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Tax expense at federal statutory rate	$	12,207	$	20,584	$	37,065
Non-controlling interest	1,982		2,366		2,440
Incremental impact of foreign taxes compared to federal tax rate	3,838		8,122		5,009
Other permanent differences	7,536		2,287		11,797
U.S. state and local taxes, net of U.S. federal benefit	(4,778)		(876)		2,737
New York City UBT	—		(1,071)		2,929
Other rate changes	(862)		153		(7,007)
Impact of Corporate Conversion	(12,446)		—		—
Nontaxable gain on insurance disposition	—		—		(65,231)
Uncertain tax positions	(797)		3,496		(6,936)
U.S. tax on foreign earnings, net of tax credits	12,388		4,808		31,299
Prior year adjustments	4,078		4,189		(714)
Valuation allowance	(4,190)		(4,670)		11,532
Other	(23)		(804)		(1,907)
Provision for income taxes	$	18,934	$	38,584	$	23,013

Summary of Deferred Tax Asset and Liability

Significant components of the Company’s deferred tax asset and liability consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022
Deferred tax asset
Basis difference of investments	$	23,522	$	15,857
Deferred compensation	90,270		70,361
Excess interest expense	55,040		39,645
Other deferred and accrued expenses	17,625		10,693
Net operating loss and credit carry-forwards	43,426		45,592
Total deferred tax asset1	229,883		182,148
Valuation allowance	(27,813)		(31,362)
Deferred tax asset, net of valuation allowance	202,070		150,786
Deferred tax liability
Depreciation and amortization	10,618		19,675
Total deferred tax liability1	10,618		19,675
Net deferred tax asset	$	191,452	$	131,111

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1Before netting within tax jurisdictions.

Summary of Gross Unrecognized Tax Benefits

A reconciliation of the beginning to the ending amounts of gross unrecognized tax benefits for the years ended December 31, 2023 and 2022 is as follows (in thousands):


Balance, December 31, 2021	$	4,394
Increases for prior year tax positions	3,159
Decreases for prior year tax positions	—
Increases for current year tax positions	—
Decreases related to settlements with taxing authorities	—
Decreases related to a lapse of applicable statute of limitations	—
Balance, December 31, 2022	$	7,553
Increases for prior year tax positions	—
Decreases for prior year tax positions	(884)
Increases for current year tax positions	—
Decreases related to settlements with taxing authorities	—
Decreases related to a lapse of applicable statute of limitations	—
Balance, December 31, 2023	$	6,669