Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2023 |
Income Tax Disclosure [Abstract] |
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Schedule of Income before Income Tax, Domestic and Foreign |
The following table presents the U.S. and non-U.S. components of Income before income tax expense: | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2023 | | 2022 | | 2021 | U.S. | $ | 288,414 | | | $ | 455,584 | | | $ | 832,411 | | Non-U.S. | 47,632 | | | 193,562 | | | 155,731 | | Income before Income Tax Expense(1) | $ | 336,046 | | | $ | 649,146 | | | $ | 988,142 | |
(1)Net of Noncontrolling Interest.
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Schedule of Components of Income Tax Expense (Benefit) |
The components of the provision for income taxes reflected on the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 consist of: | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2023 | | 2022 | | 2021 | Current: | | | | | | Federal | $ | 48,940 | | | $ | 85,699 | | | $ | 141,260 | | Foreign | 20,426 | | | 40,680 | | | 25,643 | | State and Local | 14,095 | | | 47,102 | | | 52,045 | | Total Current | 83,461 | | | 173,481 | | | 218,948 | | Deferred: | | | | | | Federal | 4,400 | | | 3,020 | | | 25,352 | | Foreign | (6,580) | | | (5,893) | | | (1,757) | | State and Local | (714) | | | 2,018 | | | 5,483 | | Total Deferred | (2,894) | | | (855) | | | 29,078 | | Total | $ | 80,567 | | | $ | 172,626 | | | $ | 248,026 | |
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Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation between the federal statutory income tax rate and the Company's effective income tax rate for the years ended December 31, 2023, 2022 and 2021 is as follows: | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2023 | | 2022 | | 2021 | Reconciliation of Federal Statutory Tax Rates: | | | | | | U.S. Statutory Tax Rate | 21.0 | % | | 21.0 | % | | 21.0 | % | Increase Due to State and Local Taxes | 4.6 | % | | 5.6 | % | | 4.6 | % | Rate Benefits as a Limited Liability Company/Flow Through | (2.2) | % | | (1.9) | % | | (2.6) | % | Foreign Taxes | 0.5 | % | | 1.0 | % | | 0.5 | % | Non-Deductible Expenses(1) | 2.0 | % | | 1.0 | % | | 0.3 | % | ASU 2016-09 Benefit for Stock Compensation | (3.7) | % | | (2.8) | % | | (1.7) | % | | | | | | | | | | | | | Valuation Allowances | 0.3 | % | | (0.3) | % | | (0.4) | % | | | | | | | Other Adjustments | (0.5) | % | | 0.9 | % | | 0.5 | % | Effective Income Tax Rate | 22.0 | % | | 24.5 | % | | 22.2 | % |
(1)Primarily related to non-deductible share-based compensation expense.
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Schedule of Deferred Tax Assets and Liabilities |
Details of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows: | | | | | | | | | | | | | December 31, | | 2023 | | 2022 | | | | | | | | | | | | | Deferred Tax Assets: | | | | Depreciation and Amortization | $ | 21,796 | | | $ | 23,558 | | Compensation and Benefits | 142,340 | | | 119,908 | | Step up in tax basis due to the exchange of LP Units for Class A Shares(1) | 62,637 | | | 71,955 | | Step up in tax basis due to the exchange of LP Units for Class A Shares(2) | 39,999 | | | 41,047 | | Operating Lease | 112,715 | | | 75,519 | | Other | 11,728 | | | 13,098 | | Total Deferred Tax Assets | $ | 391,215 | | | $ | 345,085 | | Deferred Tax Liabilities: | | | | Operating Lease | $ | 90,666 | | | $ | 56,824 | | Goodwill, Intangible Assets and Other | 17,312 | | | 14,806 | | Total Deferred Tax Liabilities | $ | 107,978 | | | $ | 71,630 | | Net Deferred Tax Assets Before Valuation Allowance | 283,237 | | | 273,455 | | Valuation Allowance | (17,423) | | | (16,289) | | Net Deferred Tax Assets | $ | 265,814 | | | $ | 257,166 | |
(1)Step-up in the tax basis associated with the exchange of LP Units for holders which have a tax receivable agreement. (2)Step-up in the tax basis associated with the exchange of LP Units for holders which do not have a tax receivable agreement.
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Summary of Income Tax Contingencies |
A reconciliation of the changes in tax positions for the years ended December 31, 2023, 2022 and 2021 is as follows: | | | | | | | | | | | | | | | | | | | December 31, | | 2023 | | 2022 | | 2021 | Beginning unrecognized tax benefit | $ | 359 | | | $ | 254 | | | $ | 376 | | Additions for tax positions of prior years | — | | | 105 | | | — | | Reductions for tax positions of prior years | — | | | — | | | — | | Lapse of Statute of Limitations | — | | | — | | | (122) | | Decrease due to settlement with Taxing Authority | — | | | — | | | — | | Ending unrecognized tax benefit | $ | 359 | | | $ | 359 | | | $ | 254 | |
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