Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Reconciliation of Effective Income Tax Rate

Income tax expenses (benefits) shown in the consolidated income statements are reconciled to amounts of tax that would have been payable (recoverable) from the application of the federal tax rate to pre-tax profit, as follows:


(Expressed in thousands)
	For the Years Ended December 31,
	2021				2020				2019
	Amount		Percentage		Amount		Percentage		Amount		Percentage
U.S. federal statutory income tax	$	47,176	21.0	%	$	35,491	21.0	%	$	15,732	21.0	%
U.S. state and local income taxes, net of U.S. federal income tax benefits	13,585		6.0	%	8,770		5.2	%	4,258		5.7	%
Unrecognized tax benefit	59		—	%	(853)		-0.5	%	—		—	%
Valuation allowance	1,121		0.5	%	517		0.3	%	1,663		2.2	%
Non-taxable income	(430)		(0.2)	%	(580)		(0.3)	%	(738)		(1.0)	%

Provision to return adjustments	281		0.1	%	239		0.1	%	(723)		(1.0)	%

Change in state and foreign tax rates	1,384		0.6	%	238		0.1	%	(135)		(0.2)	%
Foreign tax rate differentials	(223)		(0.1)	%	(469)		(0.3)	%	(59)		(0.1)	%
Excess tax benefits from share-based awards	(1,542)		(0.7)	%	(1,008)		(0.6)	%	(234)		(0.3)	%
Non-Deductible Executive Compensation	3,956		1.8	%	2,831		1.7	%	1,072		1.4	%
Other non-deductible expenses	310		0.2	%	838		0.5	%	1,123		1.6	%
Total income taxes	$	65,677	29.2	%	$	46,014	27.2	%	$	21,959	29.3	%

Schedule of Components of Income Tax Expense (Benefit)

Income tax expenses (benefits) included in the consolidated income statements represent the following:


(Expressed in thousands)
	For the Years Ended December 31,
	2021		2020		2019
Current:
U.S. federal tax	$	47,880	$	17,794	$	9,502
State and local tax	18,331		6,498		2,289
Non-U.S. operations	258		386		290
Total Current	66,469		24,678		12,081
Deferred:
U.S. federal tax	(1,745)		17,182		7,177
State and local tax	790		4,310		2,924
Non-U.S. operations	163		(156)		(223)
Total Deferred	(792)		21,336		9,878
Total	$	65,677	$	46,014	$	21,959

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows:


(Expressed in thousands)
	As of December 31,
	2021		2020
Deferred tax assets:
Deferred compensation	$	31,083	$	24,782
Deferred rent and lease incentives	10,828		9,951
Net operating losses and credits	9,304		8,664
Receivable reserves	2,257		1,290
Accrued expenses	3,516		407
Auction rate securities reserves	1,387		1,366
Involuntary conversion	1,749		1,693

Other	986		1,010
Total deferred tax assets	61,110		49,163
Valuation allowance	(6,153)		(5,059)
Deferred tax assets after valuation allowance	54,957		44,104
Deferred tax liabilities:
Goodwill	42,455		41,128
Partnership investments	37,196		32,978
Company-owned life insurance	16,854		13,037
Depreciation	2,139		1,552
Other	329		318
Total deferred tax liabilities	98,973		89,013
Deferred tax liabilities, net	$	(44,016)	$	(44,909)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefit follows:


(Expressed in thousands)
	2021		2020		2019
Balance at beginning of year	$	212	$	1,079	$	1,079
Additions for tax positions of prior years	343		212		—

Lapse in statute of limitations	—		—		—
Settlements with taxing authorities	(212)		(1,079)		—
Balance at end of year	$	343	$	212	$	1,079