XML 59 R42.htm IDEA: XBRL DOCUMENT
v3.10.0.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2018
INCOME TAXES |
Schedule of domestic and foreign components of the income before provision for income taxes |
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Domestic* |  | $ | 1,100,487 |  | $ | 1,062,713 |  | $ | 1,029,763
Foreign* |  |  | 192,785 |  |  | 138,910 |  |  | 49,922
Income before provision for income taxes |  | $ | 1,293,272 |  | $ | 1,201,623 |  | $ | 1,079,685
*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $40.5 million, $42.5 million and $25.6 million for the years ended December 31, 2018, 2017 and 2016, respectively.
Components of the provision for income taxes |
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 209,147 |  | $ | 243,127 |  | $ | 212,283
State |  |  | 41,934 |  |  | 43,252 |  |  | 35,756
Foreign |  |  | 42,541 |  |  | 27,522 |  |  | 17,171
|  |  | 293,622 |  |  | 313,901 |  |  | 265,210
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | 9,804 |  |  | 61,797 |  |  | 87,360
State |  |  | 1,644 |  |  | 3,062 |  |  | 15,254
Foreign |  |  | (8,778) |  |  | (4,579) |  |  | (9,709)
|  |  | 2,670 |  |  | 60,280 |  |  | 92,905
Valuation allowance |  |  | 3,976 |  |  | 6,764 |  |  | 8,885
|  | $ | 300,268 |  | $ | 380,945 |  | $ | 367,000
Schedule of reconciliation of income taxes computed at statutory federal rate to total income taxes |
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
U.S. Federal tax expense at statutory rates |  | $ | 271,587 |  | $ | 420,568 |  | $ | 377,599
State income taxes, net of federal tax benefit |  |  | 36,312 |  |  | 27,569 |  |  | 33,148
Permanent differences |  |  | 3,606 |  |  | 10,356 |  |  | 954
Stock based compensation |  |  | (370) |  |  | (79,687) |  |  | (13,654)
Domestic production deduction |  |  | — |  |  | (22,229) |  |  | (21,447)
Deferred tax asset reduction (Tax Reform Act) |  |  | — |  |  | 39,763 |  |  | —
Other |  |  | (8,438) |  |  | 3,736 |  |  | (8,765)
Foreign rate differential |  |  | (6,405) |  |  | (25,895) |  |  | (9,720)
Valuation allowance |  |  | 3,976 |  |  | 6,764 |  |  | 8,885
|  | $ | 300,268 |  | $ | 380,945 |  | $ | 367,000
Components of the deferred tax assets (liabilities) |
|  | 2018 |  | 2017
Deferred Tax Assets: |  |  |  |  |  |
Reserve for sales returns |  | $ | 137 |  | $ | 159
Reserve for inventory obsolescence |  |  | 2,836 |  |  | 522
Reserve for marketing development fund |  |  | 4,666 |  |  | 6,360
Capitalization of inventory costs |  |  | 1,210 |  |  | 1,598
State franchise tax - current |  |  | 2,663 |  |  | 2,050
Accrued compensation |  |  | 574 |  |  | 1,473
Accrued other liabilities |  |  | 5,276 |  |  | 3,917
Deferred revenue |  |  | 87,573 |  |  | 93,321
Stock-based compensation |  |  | 25,439 |  |  | 21,119
Foreign net operating loss carryforward |  |  | 28,030 |  |  | 28,965
Prepaid supplies |  |  | 7,476 |  |  | 7,273
Termination payments |  |  | 71,918 |  |  | 70,637
Gain on intercompany transfer |  |  | — |  |  | 6,793
Other deferred tax assets |  |  | 11,010 |  |  | 3,449
Total gross deferred tax assets |  | $ | 248,808 |  | $ | 247,636
Deferred Tax Liabilities: |  |  |  |  |  |
Amortization of trademarks |  | $ | (31,445) |  | $ | (21,657)
Intangibles |  |  | (82,544) |  |  | (84,867)
State franchise tax - deferred |  |  | (7,093) |  |  | (7,617)
Other deferred tax liabilities |  |  | (99) |  |  | (62)
Depreciation |  |  | (5,123) |  |  | (8,260)
Total gross deferred tax liabilities |  |  | (126,304) |  |  | (122,463)
Valuation Allowance |  |  | (36,816) |  |  | (32,840)
Net deferred tax assets |  | $ | 85,688 |  | $ | 92,333
Schedule of roll-forward of the total gross unrecognized tax benefits, not including interest and penalties |
|  | Gross Unrealized Tax
|  | Benefits
Balance at January 1, 2016 |  | $ | 471
Additions for tax positions related to the current year |  |  | —
Additions for tax positions related to the prior year |  |  | —
Decreases for tax positions related to prior years |  |  | (462)
Balance at December 31, 2016 |  | $ | 9
Additions for tax positions related to the current year |  |  | —
Additions for tax positions related to the prior year |  |  | 6,540
Decreases for tax positions related to prior years |  |  | (9)
Balance at December 31, 2017 |  | $ | 6,540
Additions for tax positions related to the current year |  |  | —
Additions for tax positions related to the prior year |  |  | 1,159
Decreases for tax positions related to prior years |  |  | (2,664)
Balance at December 31, 2018 |  | $ | 5,035

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration