Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Earnings before income taxes and income tax expense consist of:


	Years Ended December 31
	2023			2022			2021
	(in thousands)
Earnings before income taxes:
United States		$	714,732		$	689,278		$	1,007,847
Foreign		102,938			125,818			208,615
Total		$	817,670		$	815,096		$	1,216,462
Income tax expense:
Partnership UBT		$	7,838		$	5,996		$	6,951
Corporate subsidiaries:
Federal		2,855			1,457			750
State and local		914			931			956
Foreign		35,906			34,327			58,080
Current tax expense		47,513			42,711			66,737
Deferred tax		(18,462)			(3,072)			(4,009)
Income tax expense		$	29,051		$	39,639		$	62,728

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
	2023					2022					2021
	(in thousands)
UBT statutory rate		$	32,707	4.0	%		$	32,604	4.0	%		$	48,659	4.0	%
Corporate subsidiaries' federal, state, and local		4,538		0.6			1,460		0.2			1,322		0.2
Foreign subsidiaries taxed at different rates		36,788		4.5			32,664		4.0			43,019		3.5
FIN 48 reserve (release)		(2,838)		(0.3)			—		—			—		—
UBT business allocation percentage rate change		(1,049)		(0.1)			(98)		—			23		—
Deferred tax and payable write-offs		1,750		0.2			1,089		0.1			1,003		0.1
Foreign outside basis difference		3,414		0.4			(1,535)		(0.2)			1,492		0.1
Valuation allowance reserve (release)		(22,447)		(2.7)			—		—			—		—
Effect of ASC 740 adjustments, miscellaneous taxes, and other		3,553		0.4			5,366		0.7			1,799		0.1
Tax Credits		(1,604)		(0.2)			(5,275)		(0.6)			—		—
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge		(25,761)		(3.2)			(26,636)		(3.3)			(34,589)		(2.8)
Income tax expense and effective tax rate		$	29,051	3.6	%		$	39,639	4.9	%		$	62,728	5.2	%

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


	Years Ended December 31
	2023			2022			2021
	(in thousands)
Balance as of beginning of period		$	2,838		$	2,838		$	2,838
Additions for prior year tax positions		—			—			—
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		(2,838)			—			—
Balance as of end of period		$	—		$	2,838		$	2,838

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


	Years Ended December 31
	2023			2022
	(in thousands)
Deferred tax asset:
Differences between book and tax basis:
Benefits from net operating loss carryforwards		$	11,360		$	4,918
Long-term incentive compensation plans		12,519			17,524
Investment basis differences		11,890			10,286
Depreciation and amortization		3,706			3,071
Lease liability		4,324			4,911
Investment in foreign subsidiaries		33,427			26,479
Tax credit carryforward		5,710			6,171
Other, primarily accrued expenses deductible when paid		8,988			6,860
		91,924			80,220
Less: valuation allowance		(28,579)			(38,110)
Deferred tax asset		63,345			42,110
Deferred tax liability:
Differences between book and tax basis:
Intangible assets		11,454			10,190
Right-of-use asset		3,730			4,191
Other		3,020			2,808
Deferred tax liability		18,204			17,189
Net deferred tax asset		$	45,141		$	24,921