Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Reconciliation of Statutory Federal Income Tax Rate to Effective Rate
The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements:

Year Ended December 31,
(percent of income before tax) 2021 2020 2019
Provision for federal income taxes at the statutory rate 21.0  % 21.0  % 21.0  %
State and local income taxes, net of federal benefit 2.5  1.5  1.7 
Non-United States income taxed at different rates 2.7  2.1  (0.1)
Foreign tax credits (2.4) (0.9) (0.1)
Adjustment to deferred taxes —  (1.2) (2.1)
Global Intangible Low-Taxed Income 0.1  0.1  — 
Research credits (0.4) (1.4) (0.5)
Withholding taxes (1.4) 0.5  0.3 
Excess tax benefits from stock plans (0.9) (0.8) (1.6)
Other 0.4  1.7  (0.1)
Actual provision for income taxes 21.6  % 22.6  % 18.5  %
Significant Components of Deferred Taxes
Significant components of the Company's deferred taxes consisted of the following:

December 31,
(in thousands)
 2021
2020
Deferred tax assets:
Accruals and allowances $ 40,518  $ 29,950 
Lease liability 81,012  84,346 
Capitalized inventory costs 23,950  24,222 
Sales reserves 13,881  14,610 
Stock compensation 6,329  6,078 
Net operating loss carryforwards 22,767  24,253 
Depreciation and amortization 22,076  29,358 
Tax credits 387  844 
Foreign currency —  2,418 
Other 2,164  2,304 
Gross deferred tax assets 213,084  218,383 
Valuation allowance (22,502) (23,534)
Net deferred tax assets 190,582  194,849 
Deferred tax liabilities:
Depreciation and amortization (10,414) (16,206)
Prepaid expenses (3,447) (2,085)
ROU lease asset (68,148) (66,629)
Deferred tax liability associated with future repatriations (13,069) (19,008)
Foreign currency (3,383) — 
Gross deferred tax liabilities (98,461) (103,928)
Total net deferred taxes $ 92,121  $ 90,921 
Subsequent to the issuance of the Company’s December 31, 2020 consolidated financial statements, the Company identified that the Lease liability and corresponding ROU lease asset shown in the table above had been presented net with accruals and allowances, rather than gross. As a result, 2020 amounts in the table above have been revised from balances previously reported. The Company has assessed the qualitative and quantitative impact of the misstatement and determined it is not material to the 2020 financial statements. Further, the Company had previously recorded Sales reserves within Capitalized inventory costs, rather than presenting them separately and has reclassified such amounts to conform to the current year presentation.
Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

Year Ended December 31,
(in thousands)
 2021 2020 2019
Balance at beginning of year $ 14,493  $ 12,478  $ 11,064 
Increases related to prior year tax positions 355  1,903  4,374 
Decreases related to prior year tax positions (1,447) (162) (5,423)
Increases related to current year tax positions 883  906  4,991 
Settlements —  —  (1,464)
Expiration of statute of limitations (429) (632) (1,064)
Balance at end of year $ 13,855  $ 14,493  $ 12,478