Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Before Income Taxes

The domestic and foreign components of income before provision for income taxes are as follows for the years ended December 31:

	2022		2021		2020
Domestic	$	80,372	$	97,884	$	68,817
Foreign		3,608		2,206		5,856
Income before income taxes	$	83,980	$	100,090	$	74,673

Income Tax Expense Components

Income tax expense consisted of the following for the years ended December 31:

	2022			2021			2020
Current:
Federal	$	8,413		$	15,961		$	14,645
State		2,686			3,494			5,198
Foreign		1,661			687			1,736
Total current		12,760			20,142			21,579
Deferred:
Federal		4,264			4,724			(1,721	)
State		3,607			4,395			314
Foreign		(894	)		(303	)		(458	)
Total deferred		6,977			8,816			(1,865	)
Income tax expense	$	19,737		$	28,958		$	19,714

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) consisted of the following at December 31:

	2022			2021
Deferred Tax Assets
Allowance for expected credit losses	$	1,404		$	1,825
Accrued paid time off		2,801			2,504
Foreign net operating loss (NOL) carryforward		229			91
State net operating loss (NOL) carryforward		502			522
Stock option compensation		1,586			1,680
Deferred rent		4,224			2,566
Deferred compensation		4,692			5,358
Foreign tax credits		7,236			6,677
State tax credits		384			1,081
Foreign exchange		4,532			4,014
Foreign deferred		875			727
Accrued bonus		5,696			5,303
Impairment		2,650			—
Accrued liabilities and other		6,513			6,660
		43,324			39,008
Less: Valuation Allowance		(7,607	)		(7,048	)
Total Deferred Tax Assets		35,717			31,960
Deferred Tax Liabilities
Retention		(407	)		(637	)
Prepaid expenses		(366	)		(726	)
Payroll taxes		(697	)		(544	)
Unbilled revenue		(409	)		(607	)
Depreciation		(270	)		(1,920	)
Amortization		(99,045	)		(68,194	)
Deferred gain and other		(2,561	)		(1,245	)
Total Deferred Tax Liabilities		(103,755	)		(73,873	)
Total Net Deferred Tax Liability	$	(68,038	)	$	(41,913	)

Unrecognized Tax Benefit Reconciliation

The unrecognized tax benefit reconciliation, excluding penalty and interest, is as follows:

Unrecognized tax benefits at January 1, 2020	$	—
Increase attributable to tax positions taken during a prior period		811
Unrecognized tax benefits at December 31, 2020		811
Decrease attributable to tax positions taken during the current period		(361	)
Unrecognized tax benefits at December 31, 2021		450
Decrease attributable to tax positions taken during the current period		(305	)
Unrecognized tax benefits at December 31, 2022	$	145

Effective Income Tax Rate Reconciliation

The Company’s provision for income taxes differs from the federal statutory rate. The differences between the statutory rate and the Company’s provision are as follows:

	2022			2021			2020
Taxes at statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefit		5.8	%		5.6	%		5.6	%
Foreign tax rate differential		0.1	%		0.1	%		0.3	%
Executive compensation		2.2	%		2.1	%		2.4	%
Other permanent differences		2.0	%		(0.4	)%		0.1	%
Prior year tax adjustments		(1.1	)%		1.5	%		(1.1	)%
Deferred Impact of State Rate Change		0.6	%		—			—
Worthless stock deduction		(4.6	)%		—			—
Unrecognized tax benefits		(0.4	)%		(0.5	)%		1.0	%
Valuation allowance		0.7	%		1.3	%		1.6	%
Equity-based compensation		(1.3	)%		(1.0	)%		(3.8	)%
Tax credits		(1.5	)%		(0.8	)%		(0.7	)%
Taxes at effective rate		23.5	%		28.9	%		26.4	%