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Income taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
Income tax expenses shown in the consolidated income statements are reconciled to amounts of tax that would have been payable from the application of the federal tax rate to pre-tax profit, as follows:

(Expressed in thousands)      
 For the Years Ended December 31,
 202320222021
 AmountPercentageAmountPercentageAmountPercentage
U.S. federal statutory income tax$9,806 21.0 %$9,497 21.0 %$47,176 21.0 %
U.S. state and local income taxes, net of U.S. federal income tax benefits4,150 8.9 %3,110 6.8 %13,585 6.0 %
Unrecognized tax benefit45 0.1 %180 0.4 %59 — %
Valuation allowance964 2.1 %1,054 2.3 %1,121 0.5 %
Non-taxable income(964)(2.1)%(1,083)(2.4)%(430)(0.2)%
Provision to return adjustments(812)(1.7)%(316)(0.7)%281 0.1 %
Change in state and foreign tax rates(514)(1.1)%(660)(1.4)%1,384 0.6 %
Foreign tax rate differentials(146)(0.3)%(285)(0.6)%(223)(0.1)%
Excess tax benefits from share-based awards(1,378)(2.9)%(471)(1.0)%(1,542)(0.7)%
Non-deductible executive compensation1,514 3.2 %1,605 3.5 %3,956 1.8 %
Other non-deductible expenses3,833 8.1 %813 1.6 %310 0.2 %
Total income taxes$16,498 35.3 %$13,444 29.5 %$65,677 29.2 %
Income tax expenses included in the consolidated income statements represent the following:

(Expressed in thousands)   
 For the Years Ended December 31,
 202320222021
Current:
U.S. federal tax$6,967 $18,862 $47,880 
State and local tax2,137 8,068 18,331 
Non-U.S. operations937 1,129 258 
Total Current10,041 28,059 66,469 
Deferred:
U.S. federal tax5,207 (10,420)(1,745)
State and local tax919 (4,538)790 
Non-U.S. operations331 343 163 
Total Deferred6,457 (14,615)(792)
Total$16,498 $13,444 $65,677 
Pre-tax income with respect to non-U.S. operations was $4.8 million for the year ended December 31, 2023. Pre-tax income with respect to non-U.S. operation was $7.7 million for the year ended December 31, 2022. Pre-tax loss with respect to non-U.S. operations was $1.2 million for the year ended December 31, 2021.
The effective income tax rate for the year ended December 31, 2023 was 35.3% compared with 29.5% for the year ended December 31, 2022. The higher tax rate in the 2023 year was primarily due to the impact of unfavorable permanent items.
Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows:
(Expressed in thousands)  
 As of December 31,
 20232022
Deferred tax assets:
Deferred compensation$27,780 $27,161 
Deferred rent and lease incentives8,772 9,877 
Net operating losses and credits12,124 9,593 
Receivable reserves1,259 1,294 
Accrued expenses4,762 13,121 
Auction rate securities reserves62 1,394 
Involuntary conversion1,671 1,704 
Other981 958 
Total deferred tax assets57,411 65,102 
Valuation allowance(9,581)(7,036)
Deferred tax assets after valuation allowance47,830 58,066 
Deferred tax liabilities:
Goodwill40,984 41,775 
Partnership investments27,181 32,679 
Company-owned life insurance14,180 11,527 
Depreciation1,517 1,617 
Other303 272 
Total deferred tax liabilities84,165 87,870 
Deferred tax liabilities, net$(36,335)$(29,804)
The Company recognized deferred tax assets of $2 million at December 31, 2023 within other assets arising from net operating losses incurred by Oppenheimer Israel (OPCO) Ltd. The Company believes that realization of the deferred tax assets is more likely than not based on expectations of future taxable income in Israel. These net operating losses carry forward indefinitely and are not subject to expiration, provided that these subsidiaries and their underlying businesses continue operating normally (as is anticipated).
As of December 31, 2023, the Company had deferred tax assets of $8.6 million arising from net operating losses incurred by Oppenheimer Europe Ltd and had recorded full valuation allowances, although the net operating losses carry forward indefinitely, the Company believes it is more likely than not that the Company will not be able to realize its deferred tax assets in the future. The net change during the year in the total valuation allowance is $3.4 million.
The Company and one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and in various states and foreign jurisdictions. The Company has closed tax years through 2017 in the U.S. federal jurisdiction.
The Company has unrecognized tax benefits of $1.2 million, $1.1 million and $0.3 million as of December 31, 2023, 2022 and 2021, respectively (as shown on the table below). Included in the balance of unrecognized tax benefits as of December 31, 2023 and 2022 were $977,000 and $847,000, respectively, of tax benefits for either year that, if recognized, would affect the effective tax rate.
During the year ended December 31, 2023, the Company added $0.2 million and released $0.1 million related to state and local tax matters. The Company does not believe any unrecognized tax benefit will significantly increase or decrease within twelve months. A reconciliation of the beginning and ending amount of unrecognized tax benefit follows:
(Expressed in thousands)   
 202320222021
Balance at beginning of year$1,072 $343 $212 
Additions for tax positions of prior years224 729 343 
Settlements with taxing authorities(60)— (212)
Balance at end of year$1,236 $1,072 $343 
In its consolidated income statements, the Company records interest and penalties accruing on unrecognized tax benefits in pre-tax income as interest expense and other expense, respectively. For the year ended December 31, 2023, the Company added tax-related interest expense of $107,000, and for the years ended December 2022 and 2021, the Company released tax-related interest expense of $173,000 and $164,000, respectively, in its consolidated income statement. As of December 31, 2023 and 2022, the Company had an income tax-related interest payable of $322,000 and $214,000, respectively, on its consolidated balance sheets.