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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes

The provision for income taxes consists of the following:

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

 

 

(In thousands)

 

Current:

 

 

 

 

 

 

 

 

Federal

$

52,865

 

 

$

36,661

 

 

$

30,215

 

State and local

 

20,716

 

 

 

17,238

 

 

 

19,130

 

Foreign

 

21,030

 

 

 

19,018

 

 

 

15,538

 

Total current provision

 

94,611

 

 

 

72,917

 

 

 

64,883

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

(5,830

)

 

 

2,249

 

 

 

7,474

 

State and local

 

(1,350

)

 

 

778

 

 

 

1,439

 

Foreign

 

633

 

 

 

91

 

 

 

1,186

 

Total deferred provision

 

(6,547

)

 

 

3,118

 

 

 

10,099

 

Provision for income taxes

$

88,064

 

 

$

76,035

 

 

$

74,982

 

 

 

 

 

 

 

 

 

 

Difference between the U.S. federal statutory tax rate and the Company's effective tax rate

The difference between the U.S. federal statutory tax rate of 21% and the Company's effective tax rate is as follows:

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal statutory tax rate

 

21.0

 

%

 

21.0

 

%

 

21.0

 

%

State and local taxes - net of federal benefit

 

4.6

 

 

 

4.4

 

 

 

4.4

 

 

Credits and deductions related to research activities

 

(0.4

)

 

 

(0.4

)

 

 

(0.3

)

 

Foreign rate differential benefit

 

(0.1

)

 

 

(0.2

)

 

 

(0.4

)

 

Excess tax benefit from stock-based compensation

 

(0.1

)

 

 

(2.9

)

 

 

(5.4

)

 

Other, net

 

1.0

 

 

 

0.9

 

 

 

0.7

 

 

Effective tax rate

 

26.0

 

%

 

22.8

 

%

 

20.0

 

%

 

 

 

 

 

 

 

 

 

 

Summary of Company's Net Deferred Tax Assets

The following is a summary of the Company’s net deferred tax assets:

 

As of December 31,

 

 

2022

 

 

2021

 

 

(In thousands)

 

Deferred tax assets:

 

 

 

 

 

Stock compensation expense

$

3,451

 

 

$

2,683

 

Operating lease liabilities

 

17,842

 

 

 

18,688

 

Deferred Compensation

 

2,425

 

 

 

2,876

 

Other

 

1,774

 

 

 

128

 

Total deferred tax assets

 

25,492

 

 

 

24,375

 

Valuation allowance

 

 

 

 

 

Net deferred tax assets

 

25,492

 

 

 

24,375

 

Deferred tax liabilities:

 

 

 

 

 

Depreciation

 

(9,956

)

 

 

(9,847

)

Capitalized software development costs

 

(3,923

)

 

 

(9,417

)

Goodwill and intangible assets

 

(4,829

)

 

 

(4,311

)

Operating lease right-of-use assets

 

(14,176

)

 

 

(14,940

)

Deferred tax (liability) asset, net

$

(7,392

)

 

$

(14,140

)

 

 

 

 

 

 

 

Reconciliation of the Unrecognized Tax Benefits

A reconciliation of the unrecognized tax benefits is as follows:

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

 

 

(In thousands)

 

Balance at beginning of year

$

15,089

 

 

$

16,317

 

 

$

6,831

 

Increases based on tax positions related to the current period

 

 

 

 

 

 

 

 

Increases based on tax positions related to prior periods

 

160

 

 

 

 

 

 

9,486

 

(Decreases) based on tax positions related to prior periods

 

 

 

 

(1,228

)

 

 

 

(Decreases) related to cash settlements with taxing authorities

 

(5,414

)

 

 

 

 

 

 

Balance at end of year

$

9,835

 

 

$

15,089

 

 

$

16,317