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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
Note K—Income Taxes
The provision for income taxes for the years ended December 31, 2021, 2020 and 2019, consisted of the following (in thousands):
 Year Ended December 31,
 202120202019
Current:
Federal$137,862 $79,926 $107,699 
State47,226 27,401 39,028 
Foreign41,464 20,018 33,227 
Deferred:
Federal and state(22,515)(9,089)(9,959)
Foreign1,117 (2,650)1,087 
$205,154 $115,606 $171,082 
Income before the provision for income taxes for the years ended December 31, 2021, 2020 and 2019, consisted of the following (in thousands):
 Year Ended December 31,
 202120202019
Domestic$676,445 $378,876 $545,695 
Foreign127,335 43,006 79,820 
$803,780 $421,882 $625,515 
The income taxes shown above varied from the statutory federal income tax rates for these periods as follows:
 Year Ended December 31,
 202120202019
Federal U.S. income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal tax benefit4.5 4.9 4.9 
Permanent book/tax differences(0.4)0.3 0.5 
Compensation book/tax differences0.7 1.3 0.6 
Non-U.S. income taxed at different rates, net of foreign tax credits1.9 1.7 2.1 
Federal tax credits(1.6)(1.5)(1.4)
Tax impact of uncertain tax positions0.3 0.1 0.2 
Other, net(0.9)(0.4)(0.5)
Effective tax rate25.5 %27.4 %27.4 %
The deferred portion of the tax (benefit) provision consisted of the following (in thousands):
 Year Ended December 31,
 202120202019
Accrued expenses, deducted for tax when paid$(32,741)$(33,997)$(29,471)
Capitalized costs for books, deducted for tax462 1,904 3,246 
Depreciation(2,286)6,732 3,526 
Unrealized gains from investments held in employee deferred compensation trusts8,167 14,882 11,674 
Other, net5,000 (1,260)2,153 
$(21,398)$(11,739)$(8,872)
The components of the deferred income tax amounts at December 31, 2021 and 2020, were as follows (in thousands):
 December 31,
 20212020
Deferred income tax assets
Employee deferred compensation and other benefit obligations$155,064 $128,702 
Deferred revenues, foreign royalties and management fees16,034 — 
Deferred Payroll Taxes (CARES Act)13,355 27,086 
Credits and net operating loss carryforwards24,811 30,651 
Stock-based compensation3,843 3,637 
Allowance for credit losses6,557 5,272 
Workers’ compensation3,623 3,774 
Operating lease liabilities52,614 59,249 
Other18,565 13,361 
Total deferred income tax assets294,466 271,732 
Deferred income tax liabilities
Amortization of intangible assets(24,391)(24,163)
Property and equipment basis differences(23,305)(25,555)
Unrealized gains from investments held in employee deferred compensation trusts(34,001)(26,224)
Right-of-use assets(43,986)(49,833)
Other(10,549)(8,922)
Total deferred income tax liabilities(136,232)(134,697)
Valuation allowance(24,198)(24,132)
Total deferred income tax assets, net$134,036 $112,903 
Credits and net operating loss carryforwards primarily include tax-effected net operating losses in foreign countries of $22.8 million that expire in 2022 and later, and California enterprise zone tax credits of $1.6 million that expire in 2023. Of the $1.6 million of California enterprise zone tax credits, the Company expects that it will utilize $0.4 million of these credits prior to expiration. Valuation allowances of $23.0 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.2 million has been maintained against California enterprise zone tax credits.
As of December 31, 2021, the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of foreign subsidiaries that may be repatriated.
The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2019 to December 31, 2021 (in thousands): 
 December 31,
 202120202019
Balance at beginning of period$9,785 $9,354 $8,418 
Gross increases—tax positions in prior years3 220 — 
Gross decreases—tax positions in prior years0 0 (760)
Gross increases—tax positions in current year3,370 1,678 1,703 
Settlements— — (4)
Lapse of statute of limitations(1,894)(1,467)(3)
Balance at end of period$11,264 $9,785 $9,354 
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $11.3 million, $9.8 million and $9.3 million for 2021, 2020 and 2019, respectively.
The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2021, is $0.4 million, including a $0.1 million decrease recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2020, was $0.5 million, including less than a $0.1 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2019, was $0.5 million, including a $0.2 million increase recorded in income tax expense during the year.
The Company does not believe it is reasonably possible that the settlement of tax uncertainties will occur within the next twelve months.
The Company’s major income tax jurisdictions are the United States, Australia, Belgium, Canada, France, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2018 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2017 and subsequent years. Generally, for foreign countries, the Company remains subject to examination for 2014 and subsequent years..