Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Summary of Income (Loss) Before Income Taxes

Income before income taxes consisted of (in thousands):

	Year Ended December 31,
	2020		2019		2018
Domestic	$	4,149	$	21,414	$	22,157
Foreign	7,639		10,882		8,337
Income before income taxes	$	11,788	$	32,296	$	30,494

Summary of Income Tax Expense

The components of the Company’s income tax expense consisted of the following (in thousands):

	Year Ended December 31,
	2020		2019		2018
Current income taxes:
Federal	$	(3,030)	$	4,216	$	4,075
State and local	59		601		486
Foreign	1,673		1,952		1,758
Current income taxes	$	(1,298)	$	6,769	$	6,319
Deferred income taxes:
Federal	$	2,585	$	(2,333)	$	(803)
State and local	206		(185)		(70)
Foreign	532		225		(14)
Deferred income taxes	3,323		(2,293)		(887)
Income tax expense	$	2,025	$	4,476	$	5,432

Reconciliation of Income Tax Expense

A reconciliation of income tax expense from operations computed at the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:

	Year Ended December 31,
	2020		2019		2018
Expected U.S. federal income taxes at statutory rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal benefit	2.5		1.0		1.1
Foreign taxes	18.7		5.9		5.1
Foreign tax credit	(9.3)		—		—
Non-deductible expenses	1.6		(0.8)		4.3
Change in valuation allowance	5.4		4.9		—
Non-controlling interest	(12.7)		(10.8)		(13.7)
Share-based Compensation	5.1		(2.6)		—
Return to Provision	(15.1)		(3.0)		(1.7)
Other, net	—		(1.7)		1.7
Income tax expense	17.2	%	13.9	%	17.8	%

Summary of Deferred Tax Assets and Liabilities

The significant items comprising deferred tax assets and liabilities is as follows (in thousands):

	December 31,
	2020		2019
Deferred tax assets:
Investment in partnership	$	46,582	$	53,464
Tax Receivable Agreement liability	14,087		14,929
Stock-based compensation	4,195		2,666
Foreign Tax Credit	1,090		208
Other carryforwards	898		—
Net operating loss carryforward	756		—
Gross deferred tax assets	67,608		71,267
Valuation allowance	(12,367)		(11,242)
Deferred tax assets, net of valuation allowance	55,241		60,025
Deferred tax liabilities:
Investment in partnership	—		(2,246)
Property and equipment	(833)		(341)
Other	(506)		(232)
Gross deferred tax liabilities	(1,339)		(2,819)
Net deferred tax assets	$	53,902	$	57,206

Summary of Income Tax Contingencies

The following table summarizes changes in the amount of the Company’s unrecognized tax benefits for uncertain tax positions for the three years ended December 31, 2020, 2019 and 2018 (in thousands):

	Year Ended December 31,
	2020		2019		2018
Unrecognized tax benefits at January 1	$	490	$	490	$	490
Increases for positions taken in current year	—		—		—
Unrecognized tax benefits at December 31	$	490	$	490	$	490