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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
INCOME TAXES |
Schedule of domestic and foreign components of the income before provision for income taxes | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2020 |  | 2019 |  | 2018
Domestic* |  | $ | 1,374,402 |  | $ | 1,196,883 |  | $ | 1,100,487
Foreign* | ​ | ​ | 251,755 | ​ | ​ | 219,079 | ​ | ​ | 192,785
Income before provision for income taxes |  | $ | 1,626,157 |  | $ | 1,415,962 |  | $ | 1,293,272
​ *After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $54.2 million, $51.2 million and $40.5 million for the years ended December 31, 2020, 2019 and 2018, respectively.
Components of the provision for income taxes | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2020 |  | 2019 |  | 2018
Current: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal |  | $ | 259,073 |  | $ | 212,068 |  | $ | 209,147
State | ​ | ​ | 43,704 | ​ | ​ | 39,982 | ​ | ​ | 41,934
Foreign | ​ | ​ | 70,658 | ​ | ​ | 55,167 | ​ | ​ | 42,541
​ | ​ | ​ | 373,435 | ​ | ​ | 307,217 | ​ | ​ | 293,622
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | ​ | 11,401 | ​ | ​ | 8,320 | ​ | ​ | 9,804
State | ​ | ​ | 4,709 | ​ | ​ | (6,878) | ​ | ​ | 1,644
Foreign | ​ | ​ | (167,595) | ​ | ​ | (4,219) | ​ | ​ | (8,778)
​ | ​ | ​ | (151,485) | ​ | ​ | (2,777) | ​ | ​ | 2,670
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Valuation allowance | ​ | ​ | (5,387) | ​ | ​ | 3,687 | ​ | ​ | 3,976
​ |  | $ | 216,563 |  | $ | 308,127 |  | $ | 300,268
Schedule of reconciliation of income taxes computed at statutory federal rate to total income taxes | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2020 |  | 2019 |  | 2018
U.S. Federal tax expense at statutory rates |  | $ | 341,493 |  | $ | 297,352 |  | $ | 271,587
State income taxes, net of federal tax benefit | ​ | ​ | 37,478 | ​ | ​ | 30,098 | ​ | ​ | 36,312
Permanent differences | ​ | ​ | (1,064) | ​ | ​ | (2,128) | ​ | ​ | 3,606
Stock based compensation | ​ | ​ | 1,097 | ​ | ​ | (13,473) | ​ | ​ | (370)
Intra-company transfer benefit | ​ | ​ | (165,075) | ​ | ​ | — | ​ | ​ | —
Other | ​ | ​ | (7,388) | ​ | ​ | (12,423) | ​ | ​ | (8,438)
Foreign rate differential | ​ | ​ | 15,409 | ​ | ​ | 5,014 | ​ | ​ | (6,405)
Valuation allowance | ​ | ​ | (5,387) | ​ | ​ | 3,687 | ​ | ​ | 3,976
​ |  | $ | 216,563 |  | $ | 308,127 |  | $ | 300,268
Components of the deferred tax assets (liabilities) | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2020 |  | 2019
Deferred Tax Assets: | ​ | ​ | ​ | ​ | ​ | ​
Reserve for sales returns |  | $ | 275 |  | $ | 140
Reserve for inventory obsolescence | ​ | ​ | 2,366 | ​ | ​ | 2,066
Reserve for marketing development fund | ​ | ​ | 9,629 | ​ | ​ | 8,469
Capitalization of inventory costs | ​ | ​ | 3,365 | ​ | ​ | 2,310
State franchise tax - current | ​ | ​ | 4,229 | ​ | ​ | 2,346
Accrued compensation | ​ | ​ | 1,284 | ​ | ​ | 1,944
Accrued other liabilities | ​ | ​ | 7,464 | ​ | ​ | 5,674
Deferred revenue | ​ | ​ | 75,592 | ​ | ​ | 81,903
Stock-based compensation | ​ | ​ | 23,370 | ​ | ​ | 22,665
Foreign net operating loss carryforward | ​ | ​ | 21,626 | ​ | ​ | 30,187
Prepaid supplies | ​ | ​ | 5,551 | ​ | ​ | 5,799
Termination payments | ​ | ​ | 63,009 | ​ | ​ | 69,467
Operating lease liabilities | ​ | ​ | 4,434 | ​ | ​ | 6,155
Intangibles | ​ | ​ | 87,687 | ​ | ​ | —
Impairment-trademarks and others | ​ | ​ | 2,055 | ​ | ​ | —
Other deferred tax assets | ​ | ​ | 27,164 | ​ | ​ | 17,615
Total gross deferred tax assets |  | $ | 339,100 |  | $ | 256,740
​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred Tax Liabilities: | ​ | ​ | ​ | ​ | ​ | ​
Amortization of trademarks |  | $ | (42,161) |  | $ | (35,227)
Intangibles | ​ | ​ | — | ​ | ​ | (76,047)
State franchise tax - deferred | ​ | ​ | (6,318) | ​ | ​ | (7,173)
Operating lease ROU assets | ​ | ​ | (4,434) | ​ | ​ | (6,155)
Other deferred tax liabilities | ​ | ​ | (58) | ​ | ​ | (93)
Depreciation | ​ | ​ | (9,363) | ​ | ​ | (6,765)
Total gross deferred tax liabilities | ​ | ​ | (62,334) | ​ | ​ | (131,460)
​ | ​ | ​ | ​ | ​ | ​ | ​
Valuation Allowance | ​ | ​ | (35,116) | ​ | ​ | (40,503)
​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred tax assets |  | $ | 241,650 |  | $ | 84,777
Schedule of roll-forward of the total gross unrecognized tax benefits, not including interest and penalties | ​
​ | ​ | ​ | ​
​ |  | Gross Unrecognized Tax
​ | ​ | Benefits
Balance at January 1, 2018 | ​ | $ | 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
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 | ​ | ​ | (2,251)
Balance at December 31, 2020 | ​ | $ | 742

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