Schedule of income tax expense (benefit)

Income tax expense (benefit) is comprised of the following for the years ended December 31, 2022, 2021 and 2020 (in thousands):


	For the years ended December 31,
	2022			2021			2020
Current
Domestic	$	1,322		$	2,281		$	—
Foreign		24,749			19,853			13,529
Total current		26,071			22,134			13,529
Deferred
Domestic		2,708			(27	)		—
Foreign		(453	)		(939	)		408
Total deferred		2,255			(966	)		408
Income tax expense	$	28,326		$	21,168		$	13,937

Schedule of deferred taxes assets and liabilities

The tax effect of cumulative temporary differences and carryforwards that give rise to a significant deferred tax assets of liabilities as of December 31, 2022 and 2021 are as follows (in thousands):


	As of December 31,
	2022			2021
Deferred tax assets
Fixed assets	$	15		$	33
Net operating losses		218			518
Lease liabilities		21,315			40,632
Foreign tax credit carryforward		429			—
Amortizable transactions costs		1,231			—
Investment in partnership		44,556			—
Other		2,318			344
Deferred tax assets		70,082			41,527
Valuation allowances		(8,335	)		(496	)
Net deferred tax assets	$	61,747		$	41,031
Deferred tax liabilities
Right of use assets	$	21,415		$	39,004
Unrealized foreign exchange gains		465			1,088
Net deferred tax liabilities	$	21,880		$	40,092
Net deferred tax assets	$	39,867		$	939

The Company has foreign and U.S. corporate subsidiaries for which it records deferred taxes. The Company has $1.0 million of net operating loss carryforwards as of December 31, 2021. Of these, $0.5 million will expire between 2024 and 2028. The remaining net operating loss carryforwards have an unlimited carryforward period.

The Company recorded a valuation allowance to reflect the estimated amount of certain deferred tax assets that, more likely than not, will not be realized. In making such a determination, the Company evaluates a variety of factors, including the Company's operating history, accumulated deficit, and the existence of taxable or deductible temporary differences and reversal periods. The net change in the total valuation allowance for the years ended December 31, 2022 and 2021 was an increase of $7.8 million and a decrease of $0.5 million, respectively. The $7.8 million net increase in 2022 was primarily due to the U.S. federal deferred tax assets related to the investment in partnership and foreign tax credit carryforward. The $0.5 million net decrease in 2021 was primarily due to the utilization of prior year net operating loss carryforwards in foreign jurisdictions.

For the year ended December 31, 2022, the Company did not have any unrecognized tax benefits related to uncertain tax positions. The Company had unrecognized tax benefits of $1.4 million related to uncertain tax positions for the year ended December 31, 2021.

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