Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of the components of income before income taxes |
The components of income before income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
2022 |
|
2021 |
|
United States |
|
$ |
224,813 |
|
$ |
159,778 |
|
$ |
39,673 |
|
Foreign |
|
|
13,112 |
|
|
19,414 |
|
|
21,891 |
|
Income before income taxes |
|
$ |
237,925 |
|
$ |
179,192 |
|
$ |
61,564 |
|
|
| Schedule of the components of income tax expense |
The components of income tax expense are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
2022 |
|
2021 |
|
Current income tax expense |
|
|
|
|
|
|
|
Federal |
|
$ |
9,179 |
|
$ |
408 |
|
$ |
187 |
|
State |
|
|
3,338 |
|
|
1,840 |
|
|
856 |
|
Foreign |
|
|
5,438 |
|
|
4,701 |
|
|
5,042 |
|
Current income tax expense |
|
$ |
17,955 |
|
$ |
6,949 |
|
$ |
6,085 |
|
Deferred income tax expense (benefit) |
|
|
|
|
|
|
|
Federal |
|
|
31,941 |
|
|
13,164 |
|
|
(2,087 |
) |
State |
|
|
(5,454 |
) |
|
(4,198 |
) |
|
411 |
|
Foreign |
|
|
(997 |
) |
|
20 |
|
|
523 |
|
Deferred income tax expense (benefit) |
|
$ |
25,490 |
|
$ |
8,986 |
|
$ |
(1,153 |
) |
Income tax expense |
|
$ |
43,445 |
|
$ |
15,935 |
|
$ |
4,932 |
|
|
| 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, |
|
|
|
2023 |
|
2022 |
|
2021 |
|
Income taxes at U.S. federal statutory rate |
|
$ |
49,964 |
|
|
21.0 |
% |
$ |
37,630 |
|
|
21.0 |
% |
$ |
12,928 |
|
|
21.0 |
% |
Income attributable to non-controlling interests and nontaxable income |
|
|
(26,195 |
) |
|
(11.0 |
)% |
|
(18,662 |
) |
|
(10.4 |
)% |
|
(10,166 |
) |
|
(16.5 |
)% |
Nondeductible expenses |
|
|
5,728 |
|
|
2.4 |
% |
|
2,474 |
|
|
1.4 |
% |
|
415 |
|
|
0.7 |
% |
State and local taxes, net of federal benefit |
|
|
6,642 |
|
|
2.8 |
% |
|
4,671 |
|
|
2.6 |
% |
|
600 |
|
|
1.0 |
% |
Foreign rate differential |
|
|
259 |
|
|
0.1 |
% |
|
376 |
|
|
0.2 |
% |
|
337 |
|
|
0.5 |
% |
Change in state rate |
|
|
(12,091 |
) |
|
(5.1 |
)% |
|
(7,477 |
) |
|
(4.2 |
)% |
|
775 |
|
|
1.3 |
% |
Equity-based compensation |
|
|
(2,481 |
) |
|
(1.0 |
)% |
|
(2,374 |
) |
|
(1.3 |
)% |
|
— |
|
|
0.0 |
% |
Common Control Reorganizations |
|
|
18,356 |
|
|
7.7 |
% |
|
— |
|
|
0.0 |
% |
|
— |
|
|
0.0 |
% |
Change in valuation allowance |
|
|
2,908 |
|
|
1.2 |
% |
|
— |
|
|
0.0 |
% |
|
— |
|
|
0.0 |
% |
Other |
|
|
355 |
|
|
0.1 |
% |
|
(703 |
) |
|
(0.4 |
)% |
|
43 |
|
|
0.1 |
% |
Income tax expense |
|
$ |
43,445 |
|
|
18.2 |
% |
$ |
15,935 |
|
|
8.9 |
% |
$ |
4,932 |
|
|
8.1 |
% |
|
| 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, |
|
|
|
2023 |
|
2022 |
|
Deferred tax assets: |
|
|
|
|
|
Net operating losses |
|
$ |
1,681 |
|
$ |
1,039 |
|
Investment in the LLC |
|
|
375,218 |
|
|
386,353 |
|
Start-up costs |
|
|
6,820 |
|
|
7,199 |
|
Equity-based compensation |
|
|
686 |
|
|
— |
|
Tax credits |
|
|
2,908 |
|
|
2,478 |
|
Total deferred tax assets |
|
$ |
387,313 |
|
$ |
397,069 |
|
Valuation allowances |
|
|
(3,272 |
) |
|
(263 |
) |
Deferred tax assets, net of valuation allowance |
|
$ |
384,041 |
|
$ |
396,806 |
|
Deferred tax liabilities: |
|
|
|
|
|
Intangibles |
|
|
(53 |
) |
|
(51 |
) |
Fixed assets |
|
|
(149 |
) |
|
(155 |
) |
Other accrued items |
|
|
(78 |
) |
|
(348 |
) |
Deferred tax liabilities |
|
$ |
(280 |
) |
$ |
(554 |
) |
Net Deferred tax assets |
|
$ |
383,761 |
|
$ |
396,252 |
|
|
| 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 |
|
Interest expense |
|
|
— |
|
|
— |
|
|
148 |
|
|
148 |
|
Payments |
|
|
(4,757 |
) |
|
(3,404 |
) |
|
(148 |
) |
|
(8,309 |
) |
Balance at December 31, 2022 |
|
$ |
150,311 |
|
$ |
85,016 |
|
$ |
60,020 |
|
$ |
295,347 |
|
Exchange of LLC Common Units |
|
|
47,409 |
|
|
6,489 |
|
|
14,689 |
|
|
68,587 |
|
Remeasurement - change in state rate |
|
|
5,910 |
|
|
905 |
|
|
3,549 |
|
|
10,364 |
|
Interest expense |
|
|
— |
|
|
— |
|
|
806 |
|
|
806 |
|
Payments |
|
|
(8,962 |
) |
|
(6,596 |
) |
|
(648 |
) |
|
(16,206 |
) |
Balance at December 31, 2023 |
|
$ |
194,668 |
|
$ |
85,814 |
|
$ |
78,416 |
|
$ |
358,898 |
|
|
| Schedule of tax effects on the components of other comprehensive income (loss) |
The following table summarizes the tax effects on the components of Other comprehensive income (loss):
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2023 |
|
2022 |
|
Gain on interest rate cap |
$ |
(1,628 |
) |
$ |
(2,727 |
) |
(Gain) on interest rate cap reclassified to earnings |
|
2,734 |
|
|
— |
|
Foreign currency translation adjustments |
|
(272 |
) |
|
538 |
|
Change in share of equity method investment in related party |
|
173 |
|
|
713 |
|
|