XML 35 R15.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes and equity in earnings is attributable to the following jurisdictions (in thousands):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
United States |  | $ | 553,533 |  |  | $ | 662,138 |  |  | $ | 919,461 |
Foreign |  | 13,421 |  |  | 25,998 |  |  | 65,411 |
Total |  | $ | 566,954 |  |  | $ | 688,136 |  |  | $ | 984,872 |
The provision for income taxes consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |  |
Federal |  | $ | 97,251 |  |  | $ | 120,122 |  |  | $ | 164,135 |
State and other |  | 19,846 |  |  | 34,603 |  |  | 57,459 |
Total current provision for income taxes |  | 117,097 |  |  | 154,725 |  |  | 221,594 |
Deferred: |  |  |  |  |  |
Federal |  | 9,199 |  |  | 9,929 |  |  | 13,592 |
State and other |  | 6,540 |  |  | 430 |  |  | 1,577 |
Total deferred provision for income taxes |  | 15,739 |  |  | 10,359 |  |  | 15,169 |
Provision for income taxes |  | $ | 132,836 |  |  | $ | 165,084 |  |  | $ | 236,763 |
A reconciliation of the U.S. federal statutory tax rate to our effective tax rate on Income before income taxes and equity in earnings is as follows:
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Federal statutory rate |  | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Change in valuation allowance |  | 0.20 |  |  | 0.05 |  |  | (0.02) |
Stock-based compensation |  | (1.55) |  |  | (0.97) |  |  | (1.09) |
Other, primarily state income tax rate |  | 3.78 |  |  | 3.91 |  |  | 4.15 |
Total effective tax rate |  | 23.43 | % |  | 23.99 | % |  | 24.04 | %
In 2024, several countries in which we operate have adopted the Global Anti-Base Erosion Model Rules (Pillar Two), which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework. The Pillar Two directive did not have a material effect on our financial statements for the year ended December 31, 2024. We are continuing to evaluate the potential effect on future periods and will monitor additional guidance as it is released. We reduce federal and state income taxes payable by the tax benefits associated with the exercise of deductible nonqualified stock options and the lapse of restrictions on deductible restricted stock awards. To the extent realized tax deductions exceed the amount of previously recognized deferred tax benefits related to share-based compensation, we record an excess tax benefit. We record all excess tax benefits or deficiencies as income tax benefit or expense in the income statement. We recorded excess tax benefits of $8.8 million to our income tax provision in 2024, $6.7 million in 2023 and $10.8 million in 2022. The table below presents the components of our deferred tax assets and liabilities (in thousands):
|  | December 31,
|  | 2024 |  | 2023
Deferred tax assets: |  |  |  |
Product inventories |  | $ | 13,625 |  |  | $ | 11,764 |
Trade discounts on purchases |  | 1,044 |  |  | — |
Accrued expenses |  | 824 |  |  | 4,724 |
Leases |  | 74,108 |  |  | 73,874 |
Share-based compensation |  | 10,844 |  |  | 9,977 |
Uncertain tax positions |  | 4,133 |  |  | 3,753 |
Net operating losses |  | 2,336 |  |  | 1,447 |
Other |  | 4,843 |  |  | 4,716 |
Total non-current |  | 111,757 |  |  | 110,255 |
Less: Valuation allowance |  | (2,255) |  |  | (1,133) |
Component reclassified for net presentation |  | (108,583) |  |  | (107,733) |
Total non-current, net |  | 919 |  |  | 1,389 |
Total deferred tax assets |  | 919 |  |  | 1,389 |
Deferred tax liabilities: |  |  |  |
Trade discounts on purchases |  | — |  |  | 2,112 |
Prepaid expenses |  | 9,380 |  |  | 6,610 |
Leases |  | 73,583 |  |  | 73,092 |
Intangible assets, primarily goodwill |  | 73,334 |  |  | 60,902 |
Depreciation |  | 28,541 |  |  | 26,000 |
Interest rate swaps |  | 5,153 |  |  | 6,438 |
Total non-current |  | 189,991 |  |  | 175,154 |
Component reclassified for net presentation |  | (108,583) |  |  | (107,733) |
Total non-current, net |  | 81,408 |  |  | 67,421 |
Total deferred tax liabilities |  | 81,408 |  |  | 67,421 |
Net deferred tax liability |  | $ | 80,489 |  |  | $ | 66,032 |
At December 31, 2024, certain of our international subsidiaries had tax loss carryforwards totaling approximately $7.9 million, which expire in various years after 2025. Deferred tax assets related to the tax loss carryforwards of these international subsidiaries were $2.3 million as of December 31, 2024 and $1.4 million as of December 31, 2023. We have recorded a corresponding valuation allowance of $2.1 million and $1.0 million in the respective years. As of December 31, 2024, United States income taxes were not provided on earnings or cash balances of our foreign subsidiaries, outside of the provisions of the transition tax from U.S. tax reform enacted in December 2017. As we have historically invested or expect to invest the undistributed earnings indefinitely to fund current cash flow needs in the countries where held, additional income tax provisions may be required. Determining the amount of unrecognized deferred tax liability on these undistributed earnings and cash balances is not practicable due to the complexity of tax laws and regulations and the varying circumstances, tax treatments and timing of any future repatriation. The following table summarizes the activity related to uncertain tax positions for the past three years (in thousands):
|  | 2024 |  | 2023 |  | 2022
Balance at beginning of year |  | $ | 17,871 |  |  | $ | 15,489 |  |  | $ | 13,297 |
Increases for tax positions taken during a prior period |  | — |  |  | — |  |  | 275 |
Increases for tax positions taken during the current period |  | 4,517 |  |  | 4,457 |  |  | 5,264 |
Decreases resulting from the expiration of the statute of limitations |  | 2,709 |  |  | 2,075 |  |  | 3,347 |
Balance at end of year |  | $ | 19,679 |  |  | $ | 17,871 |  |  | $ | 15,489 |
The total amount of unrecognized tax benefits that, if recognized, would decrease the effective tax rate was $15.5 million at December 31, 2024 and $14.1 million at December 31, 2023. We record interest expense related to unrecognized tax benefits in Interest and other non-operating expenses, net, while we record related penalties in Selling and administrative expenses on our Consolidated Statements of Income. For unrecognized tax benefits, we had interest expense of $0.8 million in 2024 and $0.4 million in 2023 and interest income of $0.1 million in 2022. Accrued interest related to unrecognized tax benefits was approximately $2.7 million at December 31, 2024 and $1.9 million at December 31, 2023. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2021.

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