XML 34 R16.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Note 7. Income Taxes Earnings before income taxes were derived from the following sources:
| 2023 |  | 2022 |  | 2021
Domestic | $ | 1,392.7 |  |  | 1,335.7 |  |  | 1,100.3 |
Foreign | 129.3 |  |  | 104.3 |  |  | 107.5 |
Earnings before income taxes | $ | 1,522.0 |  |  | 1,440.0 |  |  | 1,207.8 |
Components of income tax expense (benefit) were as follows:
| 2023 |  | 2022 |  | 2021
| Current |  | Deferred |  | Total |  | Current |  | Deferred |  | Total |  | Current |  | Deferred |  | Total
Federal | $ | 273.3 |  |  | (9.2) |  |  | 264.1 |  |  | 267.6 |  |  | (5.0) |  |  | 262.6 |  |  | 214.3 |  |  | (11.4) |  |  | 202.9 |
State | 59.6 |  |  | (1.3) |  |  | 58.3 |  |  | 58.0 |  |  | (1.1) |  |  | 56.9 |  |  | 46.7 |  |  | (1.7) |  |  | 45.0 |
Foreign | 44.9 |  |  | (0.3) |  |  | 44.6 |  |  | 35.0 |  |  | (1.4) |  |  | 33.6 |  |  | 34.1 |  |  | 0.8 |  |  | 34.9 |
Income tax expense | $ | 377.8 |  |  | (10.8) |  |  | 367.0 |  |  | 360.6 |  |  | (7.5) |  |  | 353.1 |  |  | 295.1 |  |  | (12.3) |  |  | 282.8 |
Income tax expense in the accompanying consolidated financial statements differed from the expected expense as follows:
| 2023 |  | 2022 |  | 2021
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
U.S. federal statutory income tax | $ | 319.6 |  |  | 21.0 | % |  | $ | 302.4 |  |  | 21.0 | % |  | $ | 253.6 |  |  | 21.0 | %
State income taxes, net of federal benefit | $ | 45.1 |  |  | 3.0 | % |  | $ | 45.6 |  |  | 3.2 | % |  | $ | 34.9 |  |  | 2.9 | %
Other, net | $ | 2.3 |  |  | 0.1 | % |  | $ | 5.1 |  |  | 0.3 | % |  | $ | (5.7) |  |  | -0.5 | %
Effective income tax rate | $ | 367.0 |  |  | 24.1 | % |  | $ | 353.1 |  |  | 24.5 | % |  | $ | 282.8 |  |  | 23.4 | %
The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at year end consisted of the following:
| 2023 |  | 2022
Deferred income tax assets: |  |  |
Inventory costing and valuation methods | $ | 5.6 |  |  | 6.7 |
Insurance reserves | 8.3 |  |  | 8.6 |
Foreign net operating loss and credit carryforwards | 3.0 |  |  | 2.6 |
Stock-based compensation | 3.8 |  |  | 3.6 |
Operating lease liabilities | 69.5 |  |  | 62.6 |
Section 174 capitalization | 7.4 |  |  | 3.4 |
Other, deferred tax assets | 9.4 |  |  | 9.6 |
Total deferred income tax assets | 107.0 |  |  | 97.1 |
Less: Valuation allowances | (2.2) |  |  | (1.8) |
Total net deferred income tax assets | 104.8 |  |  | 95.3 |
Property and equipment | (95.4) |  |  | (102.6) |
Operating lease ROU assets | (68.3) |  |  | (61.5) |
Prepaid expenses | (3.5) |  |  | (3.5) |
Other, deferred tax liabilities | (0.4) |  |  | (1.3) |
Total deferred income tax liabilities | (167.6) |  |  | (168.9) |
Net deferred income tax liabilities | $ | (62.8) |  |  | (73.6) |
A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits is as follows:
| 2023 |  | 2022
Balance at beginning of year: | $ | 10.1 |  |  | 7.4 |
Increase related to prior year tax positions | 5.6 |  |  | 3.5 |
Increase related to current year tax positions | 0.6 |  |  | 0.6 |
Decrease related to statute of limitation lapses | (6.1) |  |  | (0.9) |
Settlements | — |  |  | (0.5) |
Balance at end of year: | $ | 10.2 |  |  | 10.1 |
Included in the liability for gross unrecognized tax benefits is $3.8 as of December 31, 2023 and $0.7 as of December 31, 2022 for interest and penalties, both of which we classify as a component of income tax expense. The amount of unrecognized tax benefits that would favorably impact the eff ective tax rate, if recognized, is $9.2 as of December 31, 2023 and $8.6 as of December 31, 2022. We believe it is reasonably possible that a decrease of up to $1.4 in unrecognized tax benefits may be recognized by the end of 2024 as a result of the lapse of the statute of limitations. The 2023 and 2022 liability is included in deferred income taxes in the Consolidated Balance Sheets. We file income tax returns in the United States federal jurisdiction, all states, and various local and foreign jurisdictions. We are no longer subject to income tax examinations by taxing authorities for taxable years before 2020 in the case of United States federal examinations, and with limited exception, before 2018 in the case of foreign, state, and local examinations. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or very minimal. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of our approximately $514.7 of undistributed earnings from foreign subsidiaries to the U.S. as those earnings continue to be permanently reinvested.

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 taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: 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 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: 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 5: 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 6: 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//1943274/2147482526/740-270-50-1 Reference 7: 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 8: 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 9: 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 10: 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