Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

The provision for income taxes consists of the following:

	Year Ended December 31,
		2024			2023			2022
	(In thousands)
Current:
Federal	$		48,337		$	49,028		$	52,865
State and local			9,695			4,047			20,716
Foreign			32,211			27,385			21,030
Total current provision			90,243			80,460			94,611
Deferred:
Federal			(2,884	)		(2,823	)		(5,830	)
State and local			(573	)		(754	)		(1,350	)
Foreign			(421	)		(2,238	)		633
Total deferred provision			(3,878	)		(5,815	)		(6,547	)
Provision for income taxes	$		86,365		$	74,645		$	88,064

Pre-tax income from U.S. operations was $235.8 million, $228.8 million and $236.4 million for the years ended December 31, 2024, 2023 and 2022, respectively. Pre-tax income from foreign operations was $124.7 million, $103.9 million and $101.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The difference between the U.S. federal statutory tax rate of 21.0% and the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2024				2023				2022
U.S. federal statutory tax rate		21.0		%		21.0		%		21.0		%
State and local taxes, net of federal benefit		1.9				0.8				4.6
Tax credits		(1.3	)			(1.0	)			(0.4	)
Foreign rate differential detriment (benefit)		1.4				0.9				(0.1	)
Excess tax detriment (benefit) from stock-based compensation		0.4				0.1				(0.1	)
Other, net		0.6				0.6				1.0
Effective tax rate		24.0		%		22.4		%		26.0		%

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

		As of December 31,
		2024				2023
		(In thousands)
Deferred tax assets:
Stock compensation expense	$		4,880		$		4,441
Operating lease liabilities			15,753				17,128
Deferred compensation			2,700				2,596
Capitalized software development			3,130				791
Other			1,096				224
Total deferred tax assets			27,559				25,180
Valuation allowance			—				—
Net deferred tax assets			27,559				25,180
Deferred tax liabilities:
Depreciation			(6,990	)			(8,617	)
Goodwill and intangible assets			(5,307	)			(3,987	)
Operating lease right-of-use assets			(12,515	)			(13,507	)
Other deferred tax liabilities			—				(276	)
Deferred tax asset (liability), net	$		2,747		$		(1,207	)

The Company is currently under a New York State income tax examination for tax years 2015 through 2020 and a New York City income tax examination for the tax years 2016 through 2018. At this time, the Company cannot estimate when the examinations will conclude or the impact such examinations will have on the Company’s Consolidated Financial Statements, if any. Generally, other than New York City and State, the Company is no longer subject to tax examinations by tax authorities for years prior to 2020.

A reconciliation of the Company’s unrecognized tax benefits is as follows:

	Year Ended December 31,
		2024			2023				2022
	(In thousands)
Balance at beginning of year		$	3,130			$	9,835			$	15,089
Increase/(decrease) based on tax positions related to prior periods			—				—				160
(Decrease) related to settlements with taxing authorities			(3,130	)			(6,705	)			(5,414	)
Balance at end of year		$	—			$	3,130			$	9,835

As of December 31, 2024, the Company had no unrecognized tax benefits recorded. During the years ended December 31, 2024, 2023 and 2022, the Company recognized gross expenses of $0.3 million, $1.6 million and $5.8 million, respectively, in penalties and interest. The Company had no accrued balances for the payment of interest and penalties as of December 31, 2024, and $2.6 million accrued for the payment of interest and penalties as of December 31, 2023.

The Company will recognize any U.S. income tax expense the Company may incur on global intangible low-taxed income as income tax expense in the period in which the tax is incurred.