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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
Note J—Income Taxes
The provision for income taxes for the years ended December 31, 2022, 2021 and 2020, consisted of the following (in thousands):
 Year Ended December 31,
 202220212020
Current:
Federal$137,483 $137,862 $79,926 
State47,032 47,226 27,401 
Foreign40,204 41,464 20,018 
Deferred:
Federal and state13,542 (22,515)(9,089)
Foreign775 1,117 (2,650)
$239,036 $205,154 $115,606 
Income before the provision for income taxes for the years ended December 31, 2022, 2021 and 2020, consisted of the following (in thousands):
 Year Ended December 31,
 202220212020
Domestic$780,624 $676,445 $378,876 
Foreign116,331 127,335 43,006 
$896,955 $803,780 $421,882 
The income taxes shown above varied from the statutory federal income tax rates for these periods as follows:
 Year Ended December 31,
 202220212020
Federal U.S. income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal tax benefit4.7 4.5 4.9 
Permanent book/tax differences0.3 (0.4)0.3 
Compensation book/tax differences0.7 0.7 1.3 
Non-U.S. income taxed at different rates, net of foreign tax credits1.7 1.9 1.7 
Federal tax credits(1.0)(1.6)(1.5)
Tax impact of uncertain tax positions0.1 0.3 0.1 
Other, net(0.9)(0.9)(0.4)
Effective tax rate26.6 %25.5 %27.4 %
The deferred portion of the tax provision (benefit) consisted of the following (in thousands):
 Year Ended December 31,
 202220212020
Accrued expenses, deducted for tax when paid$41,953 $(32,741)$(33,997)
Internal-use software and capitalized costs(7,930)462 1,904 
Depreciation4,608 (2,286)6,732 
Unrealized gains (losses) from investments held in employee deferred compensation trusts(26,009)8,167 14,882 
Other, net1,695 5,000 (1,260)
$14,317 $(21,398)$(11,739)
The components of the deferred income tax amounts at December 31, 2022 and 2021, were as follows (in thousands):
 December 31,
 20222021
Deferred income tax assets
Employee deferred compensation and other benefit obligations$137,501 $155,064 
Deferred revenues, foreign royalties and management fees3,528 16,034 
Deferred payroll taxes (CARES Act)— 13,355 
Credits and net operating loss carryforwards24,782 24,811 
Stock-based compensation5,262 3,843 
Allowance for credit losses6,765 6,557 
Workers’ compensation3,207 3,623 
Operating lease liabilities46,145 52,614 
Other17,542 18,565 
Total deferred income tax assets244,732 294,466 
Deferred income tax liabilities
Amortization of intangible assets(20,465)(24,391)
Property and equipment basis differences(19,756)(23,305)
Unrealized gains from investments held in employee deferred compensation trusts(7,992)(34,001)
Right-of-use assets(37,618)(43,986)
Other(12,104)(10,549)
Total deferred income tax liabilities(97,935)(136,232)
Valuation allowance(23,571)(24,198)
Total deferred income tax assets, net$123,226 $134,036 
Credits and net operating loss carryforwards primarily include tax-effected net operating losses in foreign countries of $23.1 million that expire in 2023 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 $0.2 million of these credits prior to expiration. Valuation allowances of $22.2 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.4 million has been maintained against California enterprise zone tax credits.
As of December 31, 2022, the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of international subsidiaries that may be repatriated.
The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2020 to December 31, 2022 (in thousands): 
 December 31,
 202220212020
Balance at beginning of period$11,264 $9,785 $9,354 
Gross increases—tax positions in prior years1,528 3 220 
Gross decreases—tax positions in prior years(7)0 0 
Gross increases—tax positions in current year1,533 3,370 1,678 
Lapse of statute of limitations(2,058)(1,894)(1,467)
Balance at end of period$12,260 $11,264 $9,785 
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $12.3 million, $11.3 million and $9.8 million for 2022, 2021 and 2020, 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, 2022, is $0.6 million, including a $0.2 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2021, was $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 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 2019 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2018 and subsequent years. Generally, for foreign countries, the Company remains subject to examination for 2015 and subsequent years.