Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Provision for Income Taxes from Continuing Operations

The provision for income taxes from continuing operations for the years ended December 31, 2020, 2019 and 2018 consists of the following (dollars in thousands):

	For the Year Ended December 31,
	2020		2019		2018
Current provision
State and local	$	2,110	$	754	$	524
Total current provision		2,110		754		524
Deferred provision
Federal		15,425		19,230		16,144
State and local		4,941		2,444		1,893
Total deferred provision		20,366		21,674		18,037
Total provision for income taxes	$	22,476	$	22,428	$	18,561

Schedule of Reconciliation of the Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate for Continuing Operations

A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate for continuing operations for the years ended December 31, 2020, 2019 and 2018 is as follows:

	For the Year Ended December 31,
	2020				2019				2018
Statutory U.S. federal income tax rate		21.0		%		21.0		%		21.0		%
State and local income taxes		2.7				2.7				3.1
Stock-based compensation		(0.3	)			(1.3	)			(1.4	)
Valuation allowance		(10.9	)			-				-
Legal settlement		-				-				1.4
State audit settlement		-				(0.5	)			0.1
Tax credits		(0.1	)			(0.1	)			(0.2	)
Other		2.9				2.3				1.0
Effective income tax rate		15.3		%		24.1		%		25.0		%

Schedule of Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits as of December 31, 2020, 2019 and 2018 is as follows (dollars in thousands):

	2020			2019			2018
Gross unrecognized tax benefits, beginning of the year	$	9,859		$	9,009		$	8,564
Additions for tax positions of prior years		-			-			5
Additions for tax positions related to the current year		2,954			1,957			1,839
Reductions for tax positions of prior years		(51	)		(58	)		-
Reductions due to lapse of applicable statute of limitations		(968	)		(1,049	)		(1,399	)
Subtotal		11,794			9,859			9,009
Interest and penalties		1,919			1,901			1,862
Total gross unrecognized tax benefits, end of the year	$	13,713		$	11,760		$	10,871

Schedule of Components of Deferred Income Tax Assets and Liabilities for Continuing Operation

Components of deferred income tax assets and liabilities for continuing operations as of December 31, 2020 and 2019 are as follows (dollars in thousands):

	December 31,
	2020			2019
Deferred income tax assets:
Accrued occupancy	$	13,028		$	15,814
Foreign tax credits		27,321			32,998
Valuation allowance foreign tax credits		(16,958	)		(32,998	)
Compensation and employee benefits		7,054			7,402
Tax net operating loss carry forwards		19,183			45,130
Valuation allowance		(12,069	)		(12,001	)
Allowance for doubtful accounts		5,363			4,547
Accrued settlements and legal		203			1,728
Accrued restructuring and severance		353			347
Equity method for investments		406			525
General business tax credits		1,620			1,511
Amortization		5,656			7,633
Other		1,388			1,110
Total deferred income tax assets		52,548			73,746
Deferred income tax liabilities:
Depreciation		111			153
Right of use asset, net		10,611			12,037
Other		1,475			1,387
Total deferred income tax liabilities		12,197			13,577
Net deferred income tax assets	$	40,351		$	60,169