XML 45 R25.htm IDEA: XBRL DOCUMENT v3.25.0.1

INCOME TAXES

12 Months Ended

Dec. 31, 2024

INCOME TAXES

INCOME TAXES

17.INCOME TAXES

The Company evaluated the various provisions of the Tax Reform Act, including, the global intangible low-taxed income (“GILTI”) and the foreign derived intangible income provisions. The Company will treat any U.S. tax on foreign earnings under GILTI as a current period expense when incurred.

Consolidated retained earnings at December 31, 2024 included undistributed after-tax earnings from certain non-U.S. subsidiaries that were not indefinitely reinvested. At December 31, 2024, the Company had a deferred tax liability of $10.7 million for the estimated taxes associated with the repatriation of these earnings. Undistributed earnings of approximately $218.5 million in foreign subsidiaries were indefinitely reinvested in foreign operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings was not practicable.

The domestic and foreign components of the Company’s income before provision for income taxes are as follows:

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​		2024			2023			2022
Domestic*		$	1,540,619		$	1,809,418		$	1,327,459
Foreign*	​	​	448,840	​	​	259,064	​	​	244,505
Income before provision for income taxes		$	1,989,459		$	2,068,482		$	1,571,964

​

*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $108.4 million, $101.4 million and $85.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Components of the provision for income taxes are as follows:

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​		2024			2023			2022
Current:	​	​	​	​	​	​	​	​	​
Federal		$	273,825		$	259,911		$	247,482
State	​	​	55,087	​	​	47,079	​	​	47,255
Foreign	​	​	145,118	​	​	99,563	​	​	37,421
​	​	​	474,030	​	​	406,553	​	​	332,158
​	​	​	​	​	​	​	​	​	​
Deferred:	​	​	​	​	​	​	​	​	​
Federal	​	​	11,395	​	​	42,237	​	​	19,111
State	​	​	(900)	​	​	2,376	​	​	258
Foreign	​	​	(12,772)	​	​	(13,936)	​	​	26,084
​	​	​	(2,277)	​	​	30,677	​	​	45,453
​	​	​	​	​	​	​	​	​	​
Valuation allowance	​	​	8,658	​	​	264	​	​	2,729
​		$	480,411		$	437,494		$	380,340

​

A reconciliation of the total provision for income taxes after applying the U.S. federal statutory rate of 21% to income before provision for income taxes to the reported provision for income taxes are as follows for the years ended:

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​		2024			2023			2022
U.S. Federal tax expense at statutory rates		$	417,786		$	434,381		$	330,113
State income taxes, net of federal tax benefit	​	​	38,850	​	​	39,416	​	​	35,848
Permanent differences	​	​	(21,298)	​	​	(27,235)	​	​	(5,450)
Stock-based compensation	​	​	5,266	​	​	(43,846)	​	​	3,571
Residual tax on undistributed foreign earnings	​	​	3,903	​	​	8,423	​	​	—
Other	​	​	(10,843)	​	​	(5,132)	​	​	1,371
Foreign rate differential	​	​	38,089	​	​	31,223	​	​	12,158
Valuation allowance	​	​	8,658	​	​	264	​	​	2,729
​		$	480,411		$	437,494		$	380,340

​

Major components of the Company’s deferred tax assets (liabilities) at December 31, 2024 and 2023 are presented in the table below. Certain amounts as of December 31, 2023 have been reclassified to conform to presentation as of December 31, 2024.

​

​	​	​	​	​	​	​
​		2024			2023
Deferred Tax Assets:	​	​	​	​	​	​
Reserve for inventory obsolescence		$	9,950		$	4,022
Capitalization of inventory costs	​	​	13,253	​	​	12,159
Accrued compensation	​	​	13,941	​	​	12,413
Deferred revenue	​	​	53,802	​	​	58,156
Stock-based compensation	​	​	19,649	​	​	19,093
Net operating loss carryforward	​	​	33,159	​	​	27,000
Prepaid supplies	​	​	9,081	​	​	10,567
Termination payments	​	​	39,489	​	​	46,810
Operating lease liabilities	​	​	13,201	​	​	5,739
Intangible assets	​	​	84,455	​	​	70,500
Accrued liabilities	​	​	16,725	​	​	10,087
Other deferred tax assets	​	​	57,562	​	​	42,071
Total gross deferred tax assets		$	364,267		$	318,617
​	​	​	​	​	​	​
Deferred Tax Liabilities:	​	​	​	​	​	​
Amortization of intangibles		$	(93,511)		$	(76,536)
Operating lease ROU assets	​	​	(13,201)	​	​	(5,739)
Bang transaction gain	​	​	(11,740)	​	​	(10,698)
Depreciation	​	​	(57,168)	​	​	(35,708)
Other deferred tax liabilities	​	​	(12,741)	​	​	(13,822)
Total gross deferred tax liabilities	​	$	(188,361)	​	$	(142,503)
​	​	​	​	​	​	​
Valuation Allowance	​	​	(38,665)	​	​	(30,007)
​	​	​	​	​	​	​
Net deferred tax assets		$	137,241		$	146,107

​

During the years ended December 31, 2024, 2023 and 2022, the Company established full valuation allowances against certain deferred tax assets from cumulative net operating losses incurred by certain foreign subsidiaries of the Company as well as state income tax related to cumulative net operating losses incurred by certain U.S. subsidiaries. The effect of the valuation allowances and the subsequent related impact on the Company’s overall tax rate was to increase the Company’s provision for income taxes by $8.6 million, $0.2 million and $2.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. At December 31, 2024, the Company had net states operating loss carryforwards of approximately $58.5 million and net foreign operating loss carryforwards of approximately $109.0 million. Of these amounts, $65.4 million of net foreign operating loss carryforwards may be carried forward indefinitely. The remaining $102.1 million of net states and foreign operating loss carryforwards will begin to expire in 2025.

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2024, 2023 and 2022:

​

​	​	​	​
​		Gross Unrecognized Tax
​	​	Benefits
Balance at December 31, 2021	​	$	—
Additions for tax positions related to the current year	​		—
Additions for tax positions related to the prior year	​		3,020
Decreases for tax positions related to prior years	​		—
Balance at December 31, 2022	​	$	3,020
Additions for tax positions related to the current year	​	​	—
Additions for tax positions related to the prior year	​	​	739
Decreases for tax positions related to prior years	​	​	(650)
Balance at December 31, 2023	​	$	3,109
Additions for tax positions related to the current year	​	​	—
Additions for tax positions related to the prior year	​	​	631
Decreases for tax positions related to prior years	​		(1,114)
Balance at December 31, 2024	​	$	2,626

​

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s consolidated financial statements. As of December 31, 2024, the Company had accrued approximately $0.7 million in interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, it would not have a significant impact on the Company’s effective tax rate.

It is expected that any change in the amount of unrecognized tax benefit change within the next 12 months will not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2021 through 2024 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are subject to examination for the 2020 through 2024 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2020 through 2024 tax years.

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

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Name:	us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration