Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of the components of income before income taxes

The components of income before income taxes are follows:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

United States

 

$

159,778

 

 

$

39,673

 

 

$

66,087

 

Foreign

 

 

19,414

 

 

 

21,891

 

 

 

13,378

 

Income before income taxes

 

$

179,192

 

 

$

61,564

 

 

$

79,465

 

Schedule of the components of income tax expense

The components of income tax expense are as follows:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Current income tax expense

 

 

 

 

 

 

 

 

 

Federal

 

$

408

 

 

$

187

 

 

$

2,257

 

State

 

 

1,840

 

 

 

856

 

 

 

3,600

 

Foreign

 

 

4,701

 

 

 

5,042

 

 

 

2,920

 

Current income tax expense

 

$

6,949

 

 

$

6,085

 

 

$

8,777

 

Deferred income tax expense (benefit)

 

 

 

 

 

 

 

 

 

Federal

 

 

13,164

 

 

 

(2,087

)

 

 

(269

)

State

 

 

(4,198

)

 

 

411

 

 

 

 

Foreign

 

 

20

 

 

 

523

 

 

 

444

 

Deferred income tax expense (benefit)

 

$

8,986

 

 

$

(1,153

)

 

$

175

 

Income tax expense

 

$

15,935

 

 

$

4,932

 

 

$

8,952

 

 

Schedule of effective income tax rate reconciliation

Reconciliations of income tax expense computed at the U.S. federal statutory income tax rate to the recognized income tax expense and the U.S. statutory income tax rate to our effective tax rates are as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Income taxes at U.S. federal statutory rate

 

$

37,630

 

 

21.0

%

 

$

12,928

 

 

21.0

%

 

$

16,688

 

 

21.0

%

Income attributable to non-controlling interests and nontaxable income

 

 

(18,662

)

 

(10.4

)%

 

 

(10,166

)

 

(16.5

)%

 

 

(13,861

)

 

(17.4

)%

Nondeductible expenses

 

 

2,474

 

 

1.4

%

 

 

415

 

 

0.7

%

 

 

 

 

0.0

%

State and local taxes, net of federal benefit

 

 

4,671

 

 

2.6

%

 

 

600

 

 

1.0

%

 

 

3,600

 

 

4.5

%

Foreign rate differential

 

 

376

 

 

0.2

%

 

 

337

 

 

0.5

%

 

 

 

 

0.0

%

Change in state rate

 

 

(7,477

)

 

(4.2

)%

 

 

775

 

 

1.3

%

 

 

 

 

0.0

%

Liquidation of C-Corporation subsidiary

 

 

213

 

 

0.1

%

 

 

 

 

0.0

%

 

 

2,309

 

 

2.9

%

Equity-based compensation

 

 

(2,374

)

 

(1.3

)%

 

 

 

 

0.0

%

 

 

 

 

0.0

%

Other

 

 

(916

)

 

(0.5

)%

 

 

43

 

 

0.1

%

 

 

216

 

 

0.3

%

Income tax expense

 

$

15,935

 

 

8.9

%

 

$

4,932

 

 

8.1

%

 

$

8,952

 

 

11.3

%

Schedule of the components of deferred tax assets and liabilities

The components of deferred tax assets and liabilities are as follows:

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Deferred tax assets:

 

 

 

 

 

 

Net operating losses

 

$

1,039

 

 

$

919

 

Investment in the LLC

 

 

386,353

 

 

 

374,336

 

Start-up costs

 

 

7,199

 

 

 

7,608

 

Tax credits

 

 

2,478

 

 

 

155

 

Total deferred tax assets

 

$

397,069

 

 

$

383,018

 

Valuation allowances

 

 

(263

)

 

 

(294

)

Deferred tax assets, net of valuation allowance

 

$

396,806

 

 

$

382,724

 

Deferred tax liabilities:

 

 

 

 

 

 

Intangibles

 

 

(51

)

 

 

(12

)

Fixed assets

 

 

(155

)

 

 

(173

)

Other accrued items

 

 

(348

)

 

 

(417

)

Deferred tax liabilities

 

$

(554

)

 

$

(602

)

Net Deferred tax assets

 

$

396,252

 

 

$

382,122

 

Summary of activity related to the tax receivable agreement liabilities The following summarizes activity related to the Tax Receivable Agreement liabilities:

 

 

Exchange Tax Attributes

 

 

Pre-IPO M&A Tax Attributes

 

 

TRA Payment Tax Attributes

 

 

TRA Liabilities

 

Balance at December 31, 2021

 

$

136,704

 

 

$

83,389

 

 

$

52,007

 

 

$

272,100

 

Exchange of LLC Common Units

 

 

16,207

 

 

 

3,680

 

 

 

6,116

 

 

 

26,003

 

Remeasurement - change in state rate

 

 

2,157

 

 

 

1,351

 

 

 

1,897

 

 

 

5,405

 

Accrued interest

 

 

 

 

 

 

 

 

148

 

 

 

148

 

Payments

 

 

(4,757

)

 

 

(3,404

)

 

 

(148

)

 

 

(8,309

)

Balance at December 31, 2022

 

$

150,311

 

 

$

85,016

 

 

$

60,020

 

 

$

295,347