Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Earnings Before Income Taxes and Income Tax Expense

Earnings before income taxes and income tax expense consist of:

	Years Ended December 31
	2021			2020			2019
		(in thousands)
Earnings before income taxes:
United States		$	1,007,847		$	743,687		$	697,501
Foreign		208,615			163,749			125,936
Total		$	1,216,462		$	907,436		$	823,437
Income tax expense:
Partnership UBT		$	6,951		$	3,356		$	9,196
Corporate subsidiaries:
Federal		750			1,495			(943)
State and local		956			904			975
Foreign		58,080			44,086			32,290
Current tax expense		66,737			49,841			41,518
Deferred tax		(4,009)			(4,188)			236
Income tax expense		$	62,728		$	45,653		$	41,754

Difference Between the Effective Tax Rates and UBT Statutory Tax Rate

The principal reasons for the difference between the effective tax rates and the UBT statutory tax rate of 4.0% are as follows:

	Years Ended December 31
	2021					2020					2019
		(in thousands)
UBT statutory rate		$	48,659	4.0	%		$	36,297	4.0	%		$	32,937	4.0	%
Corporate subsidiaries' federal, state, and local		1,322		0.2			2,025		0.2			4,000		0.5
Foreign subsidiaries taxed at different rates		43,019		3.5			33,969		3.7			26,719		3.3
FIN 48 reserve (release)		—		—			(1,886)		(0.2)			2,765		0.3
UBT business allocation percentage rate change		23		—			8		—			(79)		—
Deferred tax and payable write-offs		1,003		0.1			(887)		(0.1)			314		—
Foreign outside basis difference		1,492		0.1			3		—			155		—
Amended 2017 return		—		—			(221)		—			(3,853)		(0.5)
Effect of ASC 740 adjustments, miscellaneous taxes, and other		1,799		0.1			2,654		0.3			2,305		0.3
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge		(34,589)		(2.8)			(26,309)		(2.9)			(23,509)		(2.8)
Income tax expense and effective tax rate		$	62,728	5.2			$	45,653	5.0			$	41,754	5.1

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended December 31
	2021			2020			2019
		(in thousands)
Balance as of beginning of period		$	2,838		$	5,706		$	3,893
Additions for prior year tax positions		—			—			1,813
Reductions for prior year tax positions		—			—			—
Additions for current year tax positions		—			—			—
Reductions for current year tax positions		—			—			—
Reductions related to closed years/settlements with tax authorities		—			(2,868)			—
Balance as of end of period		$	2,838		$	2,838		$	5,706

Tax Effect of Significant Items Comprising the Net Deferred Tax Asset (Liability)

The tax effect of significant items comprising the net deferred tax asset (liability) is as follows:

	Years Ended December 31
	2021			2020
	(in thousands)
Deferred tax asset:
Differences between book and tax basis:
Benefits from net operating loss carryforwards		$	7,833		$	7,112
Long-term incentive compensation plans		24,468			22,363
Investment basis differences		5,523			5,256
Depreciation and amortization		3,942			2,065
Lease liability		5,327			5,994
Other, primarily accrued expenses deductible when paid		4,917			4,737
		52,010			47,527
Less: valuation allowance		(3,828)			(3,025)
Deferred tax asset		48,182			44,502
Deferred tax liability:
Differences between book and tax basis:
Intangible assets		7,622			7,933
Investment in foreign subsidiaries		4,084			3,048
Right-of-use asset		4,490			4,975
Other		2,075			1,760
Deferred tax liability		18,271			17,716
Net deferred tax asset		$	29,911		$	26,786