Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
Consolidated income from operations before income taxes consisted of the following:

Year Ended December 31,
(in thousands)
 2024 2023 2022
U.S. operations
 $ 83,120  $ 125,578  $ 243,695 
Foreign operations 215,067  200,614  153,715 
Income before income tax $ 298,187  $ 326,192  $ 397,410 

The components of the provision for income taxes consisted of the following:

Year Ended December 31,
(in thousands)
 2024 2023 2022
Current:
Federal $ 32,073  $ 39,939  $ 52,503 
State and local 8,394  6,879  11,191 
Non-U.S.
 40,651  33,109  25,615 
81,118  79,927  89,309 
Deferred:
Federal (11,925) (5,492) (13,248)
State and local (1,258) (1,589) (710)
Non-U.S.
 6,979  1,946  10,619 
(6,204) (5,135) (3,339)
Income tax expense $ 74,914  $ 74,792  $ 85,970 
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) 2024 2023 2022
Provision for federal income taxes at the statutory rate 21.0  % 21.0  % 21.0  %
State and local income taxes, net of federal benefit 1.9  1.2  1.6 
Non-U.S. income taxed at different rates
 (0.5) (1.4) (0.4)
Valuation allowance
 2.1  —  — 
Adjustment to deferred taxes —  —  0.1 
Global intangible low-taxed income
 —  0.9  0.1 
Research credits (0.7) (0.7) (0.4)
Withholding taxes 0.4  1.0  0.2 
Excess tax benefits from share-based compensation plans
 0.2  0.1  — 
Other 0.7  0.8  (0.6)
Actual provision for income taxes 25.1  % 22.9  % 21.6  %
Significant Components of Deferred Taxes
Significant components of the Company's deferred taxes consisted of the following:

As of December 31,
(in thousands)
 2024
2023
Deferred tax assets:
Accruals and allowances $ 37,436  $ 29,585 
Lease liabilities
 114,079  103,551 
Capitalized inventory costs 17,895  20,589 
Sales reserves 16,648  16,559 
Share-based compensation
 10,682  9,166 
Net operating loss carryforwards 2,550  1,720 
Depreciation and amortization 10,473  20,335 
Capitalized research and development expenditures 23,392  17,008 
Tax credits 153  860 
Other 3,153  2,471 
Gross deferred tax assets 236,461  221,844 
Valuation allowance (10,670) (7,141)
Net deferred tax assets 225,791  214,703 
Deferred tax liabilities:
Depreciation and amortization (3,149) (879)
Prepaid expenses (3,216) (3,315)
Lease ROU assets
 (100,475) (90,756)
Deferred tax liability associated with future repatriations (7,849) (11,657)
Foreign currency (7,209) (2,588)
Gross deferred tax liabilities (121,898) (109,195)
Total net deferred taxes $ 103,893  $ 105,508 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

Year Ended December 31,
(in thousands)
 2024 2023 2022
Balance at beginning of year $ 10,318  $ 10,177  $ 13,855 
Increases related to prior year tax positions 264  578  234 
Decreases related to prior year tax positions (307) —  (1,646)
Increases related to current year tax positions 1,247  1,376  1,355 
Expiration of statute of limitations (1,458) (1,813) (3,621)
Balance at end of year $ 10,064  $ 10,318  $ 10,177