Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Earnings (Loss) before Income Tax Expense |
The Company’s earnings (loss) before income tax expense consists of the following:
|
|
|
Year Ended December 31,
|
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
U.S. operations
|
|
|
(112,671
|
)
|
|
|
4,999
|
|
|
|
16,597
|
|
|
Foreign operations
|
|
|
267,400
|
|
|
|
511,006
|
|
|
|
415,287
|
|
|
Earnings before income taxes
|
|
|
154,729
|
|
|
|
516,005
|
|
|
|
431,884
|
|
|
| Provision for Income Tax |
The provision for income tax consists of the following:
|
|
|
Year Ended December 31,
|
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
Federal:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
$
|
(30,094
|
)
|
|
$
|
22,899
|
|
|
$
|
11,379
|
|
|
Deferred
|
|
|
(2,208
|
)
|
|
|
(3,583
|
)
|
|
|
(3,971
|
)
|
|
Total federal
|
|
|
(32,302
|
)
|
|
|
19,316
|
|
|
|
7,408
|
|
|
State:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
3,841
|
|
|
|
6,384
|
|
|
|
5,408
|
|
|
Deferred
|
|
|
(3,070
|
)
|
|
|
(813
|
)
|
|
|
(1,316
|
)
|
|
Total state
|
|
|
771
|
|
|
|
5,571
|
|
|
|
4,092
|
|
|
Foreign:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
56,530
|
|
|
|
66,656
|
|
|
|
53,071
|
|
|
Deferred
|
|
|
(16,497
|
)
|
|
|
(2,790
|
)
|
|
|
(3,960
|
)
|
|
Total foreign
|
|
|
40,033
|
|
|
|
63,866
|
|
|
|
49,111
|
|
|
Total income tax expense
|
|
$
|
8,502
|
|
|
$
|
88,753
|
|
|
$
|
60,611
|
|
|
| Summary of Earnings before Income Taxes |
Income taxes differ from the statutory tax rates as applied to earnings before income taxes as follows:
|
|
|
Year Ended December 31,
|
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
Expected income tax expense
|
|
$
|
32,493
|
|
|
$
|
108,361
|
|
|
$
|
90,696
|
|
|
State income tax, net of federal benefit
|
|
|
(2,394
|
)
|
|
|
1,278
|
|
|
|
3,051
|
|
|
Rate differential on foreign income
|
|
|
(27,426
|
)
|
|
|
(43,327
|
)
|
|
|
(40,065
|
)
|
|
Change in unrecognized tax benefits
|
|
|
6,084
|
|
|
|
2,739
|
|
|
|
820
|
|
|
Non-deductible compensation
|
|
|
7,119
|
|
|
|
7,126
|
|
|
|
6,269
|
|
|
Tax credits
|
|
|
(6,312
|
)
|
|
|
(3,264
|
)
|
|
|
(2,539
|
)
|
|
Excess tax (benefit) on stock compensation
|
|
|
703
|
|
|
|
(251
|
)
|
|
|
(1,557
|
)
|
|
Benefits provided by the CARES Act
|
|
|
(15,863
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Non-deductible share cancellation
|
|
|
4,048
|
|
|
|
—
|
|
|
|
—
|
|
|
U.S. transition tax
|
|
|
—
|
|
|
|
—
|
|
|
|
(10,963
|
)
|
|
U.S. tax on foreign earnings
|
|
|
—
|
|
|
|
9,786
|
|
|
|
9,956
|
|
|
Other
|
|
|
(463
|
)
|
|
|
3,440
|
|
|
|
2,077
|
|
|
Change in valuation allowance
|
|
|
10,513
|
|
|
|
2,865
|
|
|
|
2,866
|
|
|
Income tax expense
|
|
$
|
8,502
|
|
|
$
|
88,753
|
|
|
$
|
60,611
|
|
|
Effective tax rate
|
|
|
5.5
|
%
|
|
|
17.2
|
%
|
|
|
14.0
|
%
|
|
| Deferred Tax Assets and Liabilities |
The tax effects of temporary differences giving rise to deferred tax assets and liabilities are presented below:
|
|
|
As of December 31,
|
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
Inventory adjustments
|
|
$
|
5,788
|
|
|
$
|
6,954
|
|
|
Accrued expenses
|
|
|
59,266
|
|
|
|
50,847
|
|
|
Allowances for bad debts and chargebacks
|
|
|
5,820
|
|
|
|
4,809
|
|
|
Loss carryforwards
|
|
|
34,396
|
|
|
|
28,605
|
|
|
Business credit carryforward
|
|
|
13,130
|
|
|
|
8,262
|
|
|
Share-based compensation
|
|
|
5,194
|
|
|
|
4,521
|
|
|
Operating lease liabilities
|
|
|
305,261
|
|
|
|
261,984
|
|
|
Valuation allowance
|
|
|
(43,557
|
)
|
|
|
(33,044
|
)
|
|
Total deferred tax assets
|
|
|
385,298
|
|
|
|
332,938
|
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
Prepaid expenses
|
|
|
8,076
|
|
|
|
5,586
|
|
|
Right-of-use assets
|
|
|
305,231
|
|
|
|
261,984
|
|
|
Depreciation on property, plant and equipment
|
|
|
19,546
|
|
|
|
16,602
|
|
|
Total deferred tax liabilities
|
|
|
332,853
|
|
|
|
284,172
|
|
|
Net deferred tax assets
|
|
$
|
52,445
|
|
|
$
|
48,766
|
|
|
| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|
|
|
As of December 31,
|
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
|
Beginning balance
|
|
$
|
10,566
|
|
|
$
|
7,975
|
|
|
Additions for current year tax positions
|
|
|
9,804
|
|
|
|
1,795
|
|
|
Additions for prior year tax positions
|
|
|
2,735
|
|
|
|
1,638
|
|
|
Reductions related to lapse of statute of limitations
|
|
|
(1,594
|
)
|
|
|
(842
|
)
|
|
Ending balance
|
|
$
|
21,511
|
|
|
$
|
10,566
|
|
|