Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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:

	2023		2022		2021
Domestic	$	83,742	$	80,372	$	97,884
Foreign		12,805		3,608		2,206
Income before income taxes	$	96,547	$	83,980	$	100,090

Income Tax Expense Components

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

	2023			2022			2021
Current:
Federal	$	28,108		$	8,413		$	15,961
State		10,380			2,686			3,494
Foreign		2,247			1,661			687
Total current		40,735			12,760			20,142
Deferred:
Federal		(20,279	)		4,264			4,724
State		(6,915	)		3,607			4,395
Foreign		394			(894	)		(303	)
Total deferred		(26,800	)		6,977			8,816
Income tax expense	$	13,935		$	19,737		$	28,958

Deferred Tax Assets (Liabilities)

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

	2023			2022
Deferred Tax Assets
Allowance for expected credit losses	$	1,213		$	1,404
Accrued paid time off		3,039			2,801
Foreign net operating loss carryforward		—			229
State net operating loss carryforward		500			502
Stock-based compensation		5,523			1,586
Deferred compensation		5,765			4,692
Foreign tax credits		8,035			7,236
Federal and state tax credits		686			384
Foreign exchange		3,591			4,532
Foreign deferred		441			875
Accrued bonus		5,830			5,696
Capital loss		1,054			—
Facilities impairment		3,092			2,650
Capitalized research expenses		47,019			990
Accrued liabilities and other		2,682			5,523
Lease liabilities		58,538			56,695
		147,008			95,795
Less: Valuation Allowance		(9,021	)		(7,607	)
Total Deferred Tax Assets		137,987			88,188
Deferred Tax Liabilities
Retention		—			(407	)
Prepaid expenses		—			(366	)
Payroll taxes		(725	)		(697	)
Unbilled revenue		(284	)		(409	)
Depreciation		(2,128	)		(270	)
Amortization		(107,201	)		(99,045	)
Deferred gain and other		(2,202	)		(2,561	)
Lease assets - Right-of-Use		(51,622	)		(52,471	)
Total Deferred Tax Liabilities		(164,162	)		(156,226	)
Total Net Deferred Tax Liability	$	(26,175	)	$	(68,038	)

Components of Unrecognized Tax Benefits, Excluding Penalty and Interest

The components of unrecognized tax benefits, excluding penalty and interest, are as follows at December 31:

	2023		2022
U.S. transfer pricing	$	145	$	145
India transfer pricing		164		—
Section 41 tax credit		8,736		—
Section 174 expense capitalization		15,086
Total	$	24,131	$	145

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

Unrecognized tax benefits at January 1, 2021	$	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
Increase attributable to tax positions taken during a prior period		19,845
Increase attributable to tax positions taken during the current period		4,141
Unrecognized tax benefits at December 31, 2023		24,131

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 for the years ended December 31:

	2023			2022			2021
Taxes at statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefit		6.0	%		5.8	%		5.6	%
Foreign tax rate differential		(0.2	)%		0.1	%		0.1	%
Executive compensation		1.7	%		2.2	%		2.1	%
Other permanent differences		(0.3	)%		2.0	%		(0.4	)%
Global intangible low-taxed income (GILTI)		0.3	%		—			—
Prior year tax adjustments		(6.4	)%		(1.1	)%		1.5	%
Deferred impact of state rate change		0.5	%		0.6	%		—
Worthless stock deduction		(5.1	)%		(4.6	)%		—
Unrecognized tax benefits		9.0	%		(0.4	)%		(0.5	)%
Capital loss		(3.8	)%		—			—
Valuation allowance		2.0	%		0.7	%		1.3	%
Equity-based compensation		(1.1	)%		(1.3	)%		(1.0	)%
Tax credits		(9.2	)%		(1.5	)%		(0.8	)%
Taxes at effective rate		14.4	%		23.5	%		28.9	%