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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income (loss) from continuing operations before income taxes consists of the following components:
(In thousands)Years Ended December 31,
202120202019
Domestic$292,364 $437,039 $529,451 
Foreign81,868 (34,660)(43,265)
Total$374,232 $402,379 $486,186 
Income tax expense attributable to continuing operations consists of the following components:
(In thousands)Years Ended December 31,
202120202019
Current expense:
Federal$19,751 $86,977 $81,459 
State10,360 17,733 12,657 
Foreign25,990 23,845 24,608 
56,101 128,555 118,724 
Deferred expense (benefit):
Federal24,923 (2,979)(2,216)
State2,715 (405)(98)
Foreign6,372 26,543 (36,602)
34,010 23,159 (38,916)
Tax expense (benefit) relating to uncertain tax positions, including accrued interest4,282 (6,323)(1,338)
Income tax expense$94,393 $145,391 $78,470 

A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows:
(In thousands)Years Ended December 31,
202120202019
U.S. federal statutory income tax rate21 %21 %21 %
State and local income taxes, net of federal benefit3 4 2 
Effect of foreign operations(1)2 2 
Non-deductible compensation expenses (a)
2 1 1 
Excess tax deficiencies related to share-based compensation
(1)2 — 
Nontaxable income attributable to noncontrolling interests(1)(1)(1)
Changes in the valuation allowance (b)3 10 (4)
Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits1 (1)— 
Deferral of investment tax credit benefit (c)(1)(1)(2)
Other(1)(1)(3)
Effective income tax rate25 %36 %16 %

(a)    In the year ended December 31, 2021, the increase in nondeductible compensation expense is primarily due to the expiration of grandfathered arrangements related to equity compensation under Internal Revenue Code Section 162(m). Prior periods have been restated for comparative purposes.

(b)    In the year ended December 31, 2021, the increase in valuation allowance relates primarily to the generation of excess foreign tax credits and a reduction in the expected utilization of interest expense carryforwards as a result of a tax assessment. In the year ended December 31, 2020, the increase in valuation allowance relates primarily to a change in judgement and a change in local tax law related to the utilization of foreign net operating loss carryforwards and other deferred tax assets. In the year ended December 31, 2019, the decrease in valuation allowance relates primarily to the expected utilization of foreign net operating loss carryforwards resulting from the reorganization of intellectual property amongst the Company’s international subsidiaries.

(c)    In the years ended December 31, 2021, 2020 and 2019, the deferral of investment tax credit benefit relates to the income tax benefit recognized from investment tax credits recorded using the deferral method of accounting.
The tax effects of temporary differences that give rise to significant components of deferred tax assets or liabilities at December 31, 2021 and 2020 are as follows:
(In thousands)December 31,
20212020
Deferred Tax Asset (Liability)
NOLs and tax credit carry forwards$95,684 $98,631 
Compensation and benefit plans19,450 22,562 
Allowance for doubtful accounts1,285 1,832 
Fixed assets and intangible assets39,860 42,550 
Accrued interest expense5,258 5,599 
Other liabilities15,913 16,682 
Deferred tax asset177,450 187,856 
Valuation allowance(105,494)(96,199)
Net deferred tax asset71,956 91,657 
Prepaid liabilities(642)(538)
Fixed assets and intangible assets(106,820)(84,005)
Investments in partnerships(92,866)(77,619)
Other assets(23,894)(36,458)
Deferred tax liability(224,222)(198,620)
Total net deferred tax liability$(152,266)$(106,963)
 
At December 31, 2021, the Company had investment tax credit carry forwards of approximately $53.5 million, expiring on various dates from 2032 through 2036 and foreign tax credit carryforwards of approximately $37.8 million, expiring on various dates from 2022 through 2031, which have been reduced by a valuation allowance of $37.8 million as it is more likely than not that these carry forwards will not be realized. The Company had net operating loss carry forwards of approximately $337.4 million, related primarily to federal and state net operating losses acquired as a result of the purchase of the outstanding shares of RLJE of approximately $101.6 million and to net operating loss carryforwards of our foreign subsidiaries. The deferred tax asset related to the federal and state net operating loss carryforward of approximately $21.2 million has expiration dates ranging from 2022 through 2038 and has been reduced by a valuation allowance of approximately $7.8 million that was recorded through goodwill as part of purchase accounting. Although the foreign net operating loss carry forward periods range from 5 years to unlimited, the related deferred tax assets of approximately $36.3 million for these carry forwards have been reduced by a valuation allowance of approximately $35.7 million as it is more likely than not that these carry forwards will not be realized. The remainder of the valuation allowance at December 31, 2021 relates primarily to deferred tax assets attributable to temporary differences of certain foreign subsidiaries for which it is more likely than not that these deferred tax assets will not be realized.
For the year ended December 31, 2021, $1.3 million relating to amortization of tax deductible second component goodwill was realized as a reduction in tax liability (as determined on a 'with-and-without' approach).
At December 31, 2021, the liability for uncertain tax positions was $12.2 million, excluding the related accrued interest liability of $4.4 million and deferred tax assets of $2.4 million. All of such unrecognized tax benefits, if recognized, would reduce the Company's income tax expense and effective tax rate.
A reconciliation of the beginning to ending amount of the liability for uncertain tax positions (excluding related accrued interest and deferred tax benefit) is as follows:
(In thousands)
Balance at December 31, 2020$9,685 
Increases related to current year tax positions245 
Increases related to prior year tax positions2,737 
Decreases related to prior year tax positions(421)
Decreases due to lapse of statute of limitations(53)
Balance at December 31, 2021$12,193 
Interest expense (net of the related deferred tax benefit) of $1.8 million was recognized during the year ended December 31, 2021 and is included in income tax expense in the consolidated statement of income. At December 31, 2021 and 2020, the liability for uncertain tax positions and related accrued interest noted above are included in other liabilities in the consolidated balance sheets.
The Company is currently being audited by the State and City of New York and various other states or jurisdictions, with most of the periods under examination relating to tax years 2013 and forward.