| 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:
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Year Ended December 31, |
| (percent of income before tax) |
|
2022 |
|
2021 |
|
2020 |
| Provision for federal income taxes at the statutory rate |
|
21.0 |
% |
|
21.0 |
% |
|
21.0 |
% |
| State and local income taxes, net of federal benefit |
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1.6 |
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2.5 |
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1.5 |
|
| Non-United States income taxed at different rates |
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(0.4) |
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2.7 |
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2.1 |
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| Foreign tax credits |
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— |
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(2.4) |
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(0.9) |
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| Adjustment to deferred taxes |
|
0.1 |
|
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— |
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(1.2) |
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| Global Intangible Low-Taxed Income |
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0.1 |
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0.1 |
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0.1 |
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| Research credits |
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(0.4) |
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(0.4) |
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(1.4) |
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| Withholding taxes |
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0.2 |
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(1.4) |
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0.5 |
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| Excess tax benefits from stock plans |
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— |
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(0.9) |
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(0.8) |
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| Other |
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(0.6) |
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0.4 |
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1.7 |
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| Actual provision for income taxes |
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21.6 |
% |
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21.6 |
% |
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22.6 |
% |
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| Significant Components of Deferred Taxes |
Significant components of the Company's deferred taxes consisted of the following:
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December 31, |
(in thousands) |
|
2022 |
|
2021 |
| Deferred tax assets: |
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| Accruals and allowances |
|
$ |
31,957 |
|
|
$ |
40,518 |
|
| Lease liability |
|
89,742 |
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|
81,012 |
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| Capitalized inventory costs |
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26,147 |
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23,950 |
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| Sales reserves |
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16,897 |
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13,881 |
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| Stock compensation |
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7,659 |
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6,329 |
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| Net operating loss carryforwards |
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18,778 |
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22,767 |
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| Depreciation and amortization |
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15,463 |
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|
22,076 |
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| Tax credits |
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2,751 |
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|
387 |
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| Other |
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10,902 |
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2,164 |
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| Gross deferred tax assets |
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220,296 |
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213,084 |
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| Valuation allowance |
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(19,649) |
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(22,502) |
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| Net deferred tax assets |
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200,647 |
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190,582 |
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| Deferred tax liabilities: |
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| Depreciation and amortization |
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(5,844) |
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(10,414) |
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| Prepaid expenses |
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(2,892) |
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(3,447) |
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| ROU lease asset |
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(78,274) |
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(68,148) |
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| Deferred tax liability associated with future repatriations |
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(11,267) |
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(13,069) |
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| Foreign currency |
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(8,351) |
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(3,383) |
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| Gross deferred tax liabilities |
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(106,628) |
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(98,461) |
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| Total net deferred taxes |
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$ |
94,019 |
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$ |
92,121 |
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| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
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Year Ended December 31, |
(in thousands) |
|
2022 |
|
2021 |
|
2020 |
| Balance at beginning of year |
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$ |
13,855 |
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$ |
14,493 |
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$ |
12,478 |
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| Increases related to prior year tax positions |
|
234 |
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|
355 |
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|
1,903 |
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| Decreases related to prior year tax positions |
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(1,646) |
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(1,447) |
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(162) |
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| Increases related to current year tax positions |
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1,355 |
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|
883 |
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|
906 |
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| Expiration of statute of limitations |
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(3,621) |
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(429) |
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(632) |
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| Balance at end of year |
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$ |
10,177 |
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$ |
13,855 |
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$ |
14,493 |
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