Income taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of company's income before income taxes

The Company’s income before income taxes is comprised of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands):

	For the year ended December 31,
	2023			2022			2021
Domestic	$	(97,962	)	$	(45,701	)	$	(80,658	)
Foreign		258,053			154,023			143,015
Total	$	160,091		$	108,322		$	62,357

Schedule of income tax expense (benefit)

Income tax expense (benefit) is comprised of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands):

	For the year ended December 31,
	2023			2022			2021
Current
Domestic	$	932		$	1,322		$	2,281
Foreign		35,636			24,749			19,853
Total current		36,568			26,071			22,134
Deferred
Domestic		(1,634	)		2,708			(27	)
Foreign		(1,687	)		(453	)		(939	)
Total deferred		(3,321	)		2,255			(966	)
Income tax expense	$	33,247		$	28,326		$	21,168

Schedule of reconciliation of the statutory corporate income tax rate to the effective tax rate

A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate is comprised of the following for the years ended years ended December 31, 2023, 2022 and 2021:

	For the year ended December 31,
	2023			2022			2021
Statutory rate applied to pre-tax income		21.0	%		21.0	%		21.0	%
Foreign rate differential		5.7	%		12.0	%		8.5	%
Domestic non-controlled interest/ domestic non-taxable income		(15.9	%)		(20.1	%)		(20.9	%)
Early extinguishment of lease liability		0.0	%		4.2	%		0.0	%
Permanent items		1.8	%		(4.0	%)		(2.2	%)
Withholding taxes		11.5	%		13.7	%		22.9	%
Uncertain tax positions		2.6	%		(1.6	%)		2.8	%
Audit settlement		0.0	%		0.0	%		2.4	%
Foreign tax credit		(5.1	%)		(2.8	%)		0.0	%
Gain on tax liquidation		0.0	%		1.7	%		0.0	%
Valuation allowance		1.5	%		0.3	%		(0.7	%)
Other		(2.3	%)		1.7	%		0.1	%
Effective tax rate		20.8	%		26.1	%		33.9	%

Schedule of deferred taxes assets and liabilities

The tax effect of each type of temporary difference and carryforward that gives rise to a significant deferred tax asset or liability as of December 31, 2023 and 2022 are as follows (in thousands):

	As of December 31,
	2023			2022
Deferred tax assets
Fixed assets	$	1,121		$	15
Net operating losses		770			218
Lease liabilities		42			21,315
Foreign tax credit carryforward		1,645			429
Amortizable transactions costs		590			1,231
Investment in partnership		44,714			44,556
Unrealized foreign exchange losses		4,543			88
Other		2,133			2,230
Deferred tax assets		55,558			70,082
Valuation allowances		(10,718	)		(8,335	)
Net deferred tax assets	$	44,840		$	61,747
Deferred tax liabilities
Right of use assets	$	101		$	21,415
Unrealized foreign exchange gains		1,791			465
Net deferred tax liabilities	$	1,892		$	21,880
Net deferred tax assets	$	42,948		$	39,867

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of is shown below (in thousands):

	2023		2022
Balance at January 1	$	—	$	1,388
Increases (decreases) related to prior year tax positions		4,171		(1,388	)
Balance at December 31	$	4,171	$	—

The Company and its subsidiaries file income tax returns in the U.S., various foreign, state and local jurisdictions. The Company is currently under income tax examination in Israel related to the 2020 and 2021 tax years. Tax years that remain subject to examination vary by legal entity but are generally open in the U.S. for the tax years ending after 2019 and outside the U.S. for the tax years ending after 2017.