Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
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) 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 1.6  2.5  1.5 
Non-United States income taxed at different rates (0.4) 2.7  2.1 
Foreign tax credits —  (2.4) (0.9)
Adjustment to deferred taxes 0.1  —  (1.2)
Global Intangible Low-Taxed Income 0.1  0.1  0.1 
Research credits (0.4) (0.4) (1.4)
Withholding taxes 0.2  (1.4) 0.5 
Excess tax benefits from stock plans —  (0.9) (0.8)
Other (0.6) 0.4  1.7 
Actual provision for income taxes 21.6  % 21.6  % 22.6  %
Significant Components of Deferred Taxes
Significant components of the Company's deferred taxes consisted of the following:

December 31,
(in thousands)
2022
2021
Deferred tax assets:
Accruals and allowances $ 31,957  $ 40,518 
Lease liability 89,742  81,012 
Capitalized inventory costs 26,147  23,950 
Sales reserves 16,897  13,881 
Stock compensation 7,659  6,329 
Net operating loss carryforwards 18,778  22,767 
Depreciation and amortization 15,463  22,076 
Tax credits 2,751  387 
Other 10,902  2,164 
Gross deferred tax assets 220,296  213,084 
Valuation allowance (19,649) (22,502)
Net deferred tax assets 200,647  190,582 
Deferred tax liabilities:
Depreciation and amortization (5,844) (10,414)
Prepaid expenses (2,892) (3,447)
ROU lease asset (78,274) (68,148)
Deferred tax liability associated with future repatriations (11,267) (13,069)
Foreign currency (8,351) (3,383)
Gross deferred tax liabilities (106,628) (98,461)
Total net deferred taxes $ 94,019  $ 92,121 
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)
2022 2021 2020
Balance at beginning of year $ 13,855  $ 14,493  $ 12,478 
Increases related to prior year tax positions 234  355  1,903 
Decreases related to prior year tax positions (1,646) (1,447) (162)
Increases related to current year tax positions 1,355  883  906 
Expiration of statute of limitations (3,621) (429) (632)
Balance at end of year $ 10,177  $ 13,855  $ 14,493