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INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
INCOME TAXES |
Schedule of domestic and foreign components of the income before provision for income taxes | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2019 |  | 2018 |  | 2017
Domestic* | ​ | $ | 1,196,883 | ​ | $ | 1,100,487 | ​ | $ | 1,062,713
Foreign* | ​ |  | 219,079 | ​ |  | 192,785 | ​ |  | 138,910
Income before provision for income taxes | ​ | $ | 1,415,962 | ​ | $ | 1,293,272 | ​ | $ | 1,201,623
​ *After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $51.2 million, $40.5 million and $42.5 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Components of the provision for income taxes | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2019 |  | 2018 |  | 2017
Current: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 212,068 | ​ | $ | 209,147 | ​ | $ | 243,127
State | ​ |  | 39,982 | ​ |  | 41,934 | ​ |  | 43,252
Foreign | ​ |  | 55,167 | ​ |  | 42,541 | ​ |  | 27,522
​ | ​ |  | 307,217 | ​ |  | 293,622 | ​ |  | 313,901
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | 8,320 | ​ |  | 9,804 | ​ |  | 61,797
State | ​ |  | (6,878) | ​ |  | 1,644 | ​ |  | 3,062
Foreign | ​ |  | (4,219) | ​ |  | (8,778) | ​ |  | (4,579)
​ | ​ |  | (2,777) | ​ |  | 2,670 | ​ |  | 60,280
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Valuation allowance | ​ |  | 3,687 | ​ |  | 3,976 | ​ |  | 6,764
​ | ​ | $ | 308,127 | ​ | $ | 300,268 | ​ | $ | 380,945
Schedule of reconciliation of income taxes computed at statutory federal rate to total income taxes | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2019 |  | 2018 |  | 2017
U.S. Federal tax expense at statutory rates | ​ | $ | 297,352 | ​ | $ | 271,587 | ​ | $ | 420,568
State income taxes, net of federal tax benefit | ​ |  | 30,098 | ​ |  | 36,312 | ​ |  | 27,569
Permanent differences | ​ |  | (2,128) | ​ |  | 3,606 | ​ |  | 10,356
Stock based compensation | ​ | ​ | (13,473) | ​ | ​ | (370) | ​ | ​ | (79,687)
Domestic production deduction | ​ |  | — | ​ |  | — | ​ |  | (22,229)
Deferred tax asset reduction (Tax Reform Act) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 39,763
Other | ​ |  | (12,423) | ​ |  | (8,438) | ​ |  | 3,736
Foreign rate differential | ​ |  | 5,014 | ​ |  | (6,405) | ​ |  | (25,895)
Valuation allowance | ​ |  | 3,687 | ​ |  | 3,976 | ​ |  | 6,764
​ | ​ | $ | 308,127 | ​ | $ | 300,268 | ​ | $ | 380,945
Components of the deferred tax assets (liabilities) | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2019 |  | 2018
Deferred Tax Assets: | ​ | ​ | ​ | ​ | ​ | ​
Reserve for sales returns | ​ | $ | 140 | ​ | $ | 137
Reserve for inventory obsolescence | ​ |  | 2,066 | ​ |  | 2,836
Reserve for marketing development fund | ​ |  | 8,469 | ​ |  | 4,666
Capitalization of inventory costs | ​ |  | 2,310 | ​ |  | 1,210
State franchise tax - current | ​ |  | 2,346 | ​ |  | 2,663
Accrued compensation | ​ |  | 1,944 | ​ |  | 574
Accrued other liabilities | ​ |  | 5,674 | ​ |  | 5,276
Deferred revenue | ​ |  | 81,903 | ​ |  | 87,573
Stock-based compensation | ​ |  | 22,665 | ​ |  | 25,439
Foreign net operating loss carryforward | ​ |  | 30,187 | ​ |  | 28,030
Prepaid supplies | ​ |  | 5,799 | ​ |  | 7,476
Termination payments | ​ |  | 69,467 | ​ |  | 71,918
Operating lease liabilities | ​ |  | 6,155 | ​ |  | —
Other deferred tax assets | ​ | ​ | 17,615 | ​ | ​ | 11,010
Total gross deferred tax assets | ​ | $ | 256,740 | ​ | $ | 248,808
​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred Tax Liabilities: | ​ | ​ | ​ | ​ | ​ | ​
Amortization of trademarks | ​ | $ | (35,227) | ​ | $ | (31,445)
Intangibles | ​ |  | (76,047) | ​ |  | (82,544)
State franchise tax - deferred | ​ |  | (7,173) | ​ |  | (7,093)
Operating lease ROU assets | ​ | ​ | (6,155) | ​ | ​ | —
Other deferred tax liabilities | ​ |  | (93) | ​ |  | (99)
Depreciation | ​ |  | (6,765) | ​ |  | (5,123)
Total gross deferred tax liabilities | ​ |  | (131,460) | ​ |  | (126,304)
​ | ​ | ​ | ​ | ​ | ​ | ​
Valuation Allowance | ​ |  | (40,503) | ​ |  | (36,816)
​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred tax assets | ​ | $ | 84,777 | ​ | $ | 85,688
Schedule of roll-forward of the total gross unrecognized tax benefits, not including interest and penalties | ​
​ | ​ | ​ | ​
​ |  | Gross Unrecognized Tax
​ | ​ | Benefits
Balance at January 1, 2017 | ​ | $ | 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
Additions for tax positions related to the current year | ​ | ​ | —
Additions for tax positions related to the prior year | ​ | ​ | 1,833
Decreases for tax positions related to prior years | ​ | ​ | (3,875)
Balance at December 31, 2019 | ​ | $ | 2,993

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