16. Income Taxes

Significant components of deferred tax assets and liabilities are as follows:


	Year Ended December 31,
	2014			2013
Deferred tax assets:
Allowance for doubtful accounts	$	14,088		$	11,126
Accrued vacation and bonus		22,021			18,662
Deferred rent		15,036			16,119
Share-based compensation		18,617			21,843
Notes receivable from employees		23,158			26,036
State net operating loss carryforward & credits		3,558			2,454
Foreign net operating loss carryforward		8,040			6,024
Foreign tax credits		2,929			2,169
Future foreign tax credit asset		5,259			6,861
Deferred compensation		4,669			12,463
Other — net		9,583			9,090

Total deferred tax assets		126,958			132,847

Deferred tax liabilities:
Revenue recognition		(9,402	)		(16,474	)
Property, equipment and capitalized software		(4,142	)		(6,523	)
Goodwill and other intangible asset amortization		(233,572	)		(210,656	)

Total deferred tax liabilities		(247,116	)		(233,653	)

Valuation allowance		(14,442	)		(10,201	)

Net deferred tax assets (liabilities)	$	(134,600	)	$	(111,007	)

As of December 31, 2014, we have not provided for deferred taxes on $31.2 million of the undistributed non-U.S. subsidiary earnings that are considered permanently invested. If these earnings were distributed in the form of dividends or otherwise, the distributors would be subject to U.S. federal income tax of approximately $10.9 million.

At December 31, 2014 and 2013, the Company believed certain deferred tax assets principally associated with foreign net operating loss, foreign tax credit carryforwards, and other related foreign balance sheet accounts which can be carried forward for periods ranging from 20 years to indefinite, would expire unused based on updated forward-looking financial information. Therefore, valuation allowances of $14.4 million and $10.2 million were recorded against the Company’s net deferred tax assets at December 31, 2014 and 2013, respectively.

As of December 31, 2014, we have not recorded a $1.5 million deferred tax liability related to the tax basis difference in the investment in our foreign subsidiaries as the investment is considered permanent in duration.

The components of “Income before income tax provision” from continuing operations are as follows:


	Year Ended December 31,
	2014		2013			2012
Domestic	$	60,315	$	32,498		$	40,275
Foreign		41,096		(687	)		(37,161	)

	$	101,411	$	31,811		$	3,114

The components of income tax provision from continuing operations are as follows:


	Year Ended December 31,
	2014			2013			2012
Current
Federal	$	288		$	16,066		$	21,172
State		4,681			6,673			6,268
Foreign		14,042			9,599			7,021

		19,011			32,338			34,461

Deferred
Federal	$	21,657		$	(1,094	)	$	7,553
State		2,309			(1,054	)		(719	)
Foreign		(373	)		12,215			(1,195	)

		23,593			10,067			5,639

Income tax provision	$	42,604		$	42,405		$	40,100

Our income tax provision from continuing operations resulted in effective tax rates that varied from the statutory federal income tax rate as follows:


	Year Ended December 31,
	2014			2013			2012
Income tax expense at federal statutory rate	$	35,494		$	11,134		$	1,090
State income taxes, net of federal benefit		3,494			3,270			3,607
Benefit from lower foreign tax rates		(4,154	)		(5,214	)		(5,357	)
Non-deductible goodwill impairment		—			29,313			38,635
Valuation allowance on foreign tax credits & net operating loss carryforward		4,604			8,206			—
Other expenses not deductible for tax purposes		2,962			2,872			3,682
Changes in non-taxable contingent consideration		—			(2,777	)		(1,151	)
Other adjustments, net		204			(4,399	)		(406	)

	$	42,604		$	42,405		$	40,100

We file numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many city, state and foreign jurisdictions. We are no longer subject to U.S. federal income tax examinations for years prior to 2011 and are no longer subject to state and local or foreign tax examinations by tax authorities for years prior to 2008. In addition, open tax years related to state and foreign jurisdictions remain subject to examination but are not considered material to our financial position, results of operations or cash flows.

Our liability for uncertain tax positions was $2.8 million and $2.9 million at December 31, 2014 and 2013, respectively. During the first quarter of 2014, the Company effectively settled certain prior year tax matters. As a result, the Company reversed approximately $1.2 million of its liability for uncertain tax positions. At December 31, 2014, our accrual for the payment of tax- related interest and penalties was not material. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. Although the timing of the resolution and closure of such examinations is not certain, the Company believes it is reasonably possible that tax audit resolutions could reduce its unrecognized tax benefits by approximately $1.7 million in the next 12 months.