Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Earnings before Income Tax Expense |
The Company’s earnings before income tax expense consists of the following:
|
|
|
Year Ended December 31,
|
|
|
(in thousands)
|
|
2021
|
|
|
2020
|
|
|
2019
|
|
|
U.S. operations
|
|
$
|
71,900
|
|
|
$
|
(112,671
|
)
|
|
$
|
4,999
|
|
|
Foreign operations
|
|
|
497,857
|
|
|
|
267,400
|
|
|
|
511,006
|
|
|
Earnings before income taxes
|
|
$
|
569,757
|
|
|
$
|
154,729
|
|
|
$
|
516,005
|
|
|
| Summary of Income Tax |
Income tax consists of the following:
|
|
|
Year Ended December 31,
|
|
|
(in thousands)
|
|
2021
|
|
|
2020
|
|
|
2019
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
34,288
|
|
|
$
|
(30,094
|
)
|
|
$
|
22,899
|
|
|
State
|
|
|
7,268
|
|
|
|
3,841
|
|
|
|
6,384
|
|
|
Foreign
|
|
|
102,062
|
|
|
|
56,530
|
|
|
|
66,656
|
|
|
|
|
|
143,618
|
|
|
|
30,277
|
|
|
|
95,939
|
|
|
Deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(27,074
|
)
|
|
|
(2,208
|
)
|
|
|
(3,583
|
)
|
|
State
|
|
|
(4,481
|
)
|
|
|
(3,070
|
)
|
|
|
(813
|
)
|
|
Foreign
|
|
|
(357,938
|
)
|
|
|
(16,497
|
)
|
|
|
(2,790
|
)
|
|
|
|
|
(389,493
|
)
|
|
|
(21,775
|
)
|
|
|
(7,186
|
)
|
|
Income tax expense (benefit)
|
|
$
|
(245,875
|
)
|
|
$
|
8,502
|
|
|
$
|
88,753
|
|
|
| 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)
|
|
2021
|
|
|
2020
|
|
|
2019
|
|
|
Expected income tax expense
|
|
$
|
119,649
|
|
|
$
|
32,493
|
|
|
$
|
108,361
|
|
|
State income tax, net of federal benefit
|
|
|
(172
|
)
|
|
|
(2,394
|
)
|
|
|
1,278
|
|
|
Rate differential on foreign income
|
|
|
(24,615
|
)
|
|
|
(27,426
|
)
|
|
|
(43,327
|
)
|
|
Change in unrecognized tax benefits
|
|
|
11,538
|
|
|
|
6,084
|
|
|
|
2,739
|
|
|
Intra-entity intellectual property transfer
|
|
|
(346,776
|
)
|
|
|
—
|
|
|
|
—
|
|
|
FDII deduction
|
|
|
(10,695
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Non-deductible compensation
|
|
|
8,693
|
|
|
|
7,119
|
|
|
|
7,126
|
|
|
Tax credits
|
|
|
(7,547
|
)
|
|
|
(6,312
|
)
|
|
|
(3,264
|
)
|
|
Excess tax (benefit) on stock compensation
|
|
|
976
|
|
|
|
703
|
|
|
|
(251
|
)
|
|
Benefits provided by the Coronavirus Aid, Relief, and Economic Security Act
|
|
|
(905
|
)
|
|
|
(15,863
|
)
|
|
|
—
|
|
|
Non-deductible share cancellation
|
|
|
—
|
|
|
|
4,048
|
|
|
|
—
|
|
|
U.S. tax on foreign earnings
|
|
|
—
|
|
|
|
—
|
|
|
|
9,786
|
|
|
Other
|
|
|
(927
|
)
|
|
|
(463
|
)
|
|
|
3,440
|
|
|
Change in valuation allowance
|
|
|
4,906
|
|
|
|
10,513
|
|
|
|
2,865
|
|
|
Income tax expense (benefit)
|
|
$
|
(245,875
|
)
|
|
$
|
8,502
|
|
|
$
|
88,753
|
|
|
Effective tax rate
|
|
|
(43.2)
|
%
|
|
|
5.5
|
%
|
|
|
17.2
|
%
|
|
| 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)
|
|
2021
|
|
|
2020
|
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
|
Inventory adjustments
|
|
$
|
9,099
|
|
|
$
|
5,788
|
|
|
Accrued expenses
|
|
|
76,412
|
|
|
|
59,266
|
|
|
Allowances for bad debts and chargebacks
|
|
|
4,667
|
|
|
|
5,820
|
|
|
Advance payment
|
|
|
27,594
|
|
|
|
—
|
|
|
Intra-entity IP transfer
|
|
|
346,776
|
|
|
|
—
|
|
|
Loss carryforwards
|
|
|
38,273
|
|
|
|
34,396
|
|
|
Business credit carryforward
|
|
|
15,537
|
|
|
|
13,130
|
|
|
Share-based compensation
|
|
|
6,479
|
|
|
|
5,194
|
|
|
Operating lease liabilities
|
|
|
337,399
|
|
|
|
305,261
|
|
|
Valuation allowance
|
|
|
(48,463
|
)
|
|
|
(43,557
|
)
|
|
Total deferred tax assets
|
|
|
813,773
|
|
|
|
385,298
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
|
Prepaid expenses
|
|
|
4,116
|
|
|
|
8,076
|
|
|
Right-of-use assets
|
|
|
337,371
|
|
|
|
305,231
|
|
|
Depreciation on property, plant and equipment
|
|
|
32,751
|
|
|
|
19,546
|
|
|
Total deferred tax liabilities
|
|
|
374,238
|
|
|
|
332,853
|
|
|
Net deferred tax assets
|
|
$
|
439,535
|
|
|
$
|
52,445
|
|
|
| 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)
|
|
2021
|
|
|
2020
|
|
|
Beginning balance
|
|
$
|
21,511
|
|
|
$
|
10,566
|
|
|
Additions for current year tax positions
|
|
|
34,975
|
|
|
|
9,804
|
|
|
Additions for prior year tax positions
|
|
|
15,256
|
|
|
|
2,735
|
|
|
Reductions for prior year tax positions
|
|
|
(361
|
)
|
|
|
—
|
|
|
Settlement of uncertain tax positions
|
|
|
(812
|
)
|
|
|
—
|
|
|
Reductions related to lapse of statute of limitations
|
|
|
(3,618
|
)
|
|
|
(1,594
|
)
|
|
Ending balance
|
|
$
|
66,951
|
|
|
$
|
21,511
|
|
|