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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Components of the provision for income taxes and the income to which it relates for the years ended December 31, 2020, 2019 and 2018 consist of the following (in thousands):

			Year Ended December 31,
			2020						2019						2018
Income before income taxes (1):
Domestic			$	98,111					$	145,570					$	125,056
Foreign			45,588						79,041						80,253
Income before income taxes			$	143,699					$	224,611					$	205,309
Current income taxes:
Federal			$	14,951					$	26,624					$	18,751
Foreign			9,909						21,904						23,231
U.S. state and local			2,158						2,553						2,506
Current provision for income taxes			27,018						51,081						44,488
Deferred provision (benefit) for income taxes:
Federal			4,485						7,498						7,621
Foreign			5,287						863						(566)
U.S. state and local			330						551						560
Total deferred provision for income taxes			10,102						8,912						7,615
Provision for income taxes			$	37,120					$	59,993					$	52,103

(1)Includes the allocation of certain administrative expenses and intercompany payments, such as royalties and interest, between domestic and foreign subsidiaries.

Schedule of Deferred Tax Assets and Liabilities

The principal deferred tax assets and liabilities consist of the following (in thousands):

			As of December 31,
			2020						2019
Deferred tax assets:
Property and equipment			$	9,905					$	10,407
Accrued fees on forfeited pawn loans			5,246						8,006
Deferred cost of goods sold deduction			3,622						5,721
Accrued compensation, payroll taxes and employee benefits			4,235						2,163
U.S. state and certain foreign net operating losses			5,942						6,012
Other			3,364						4,428
Total deferred tax assets			32,314						36,737
Deferred tax liabilities:
Intangible assets			81,749						71,814
Net operating lease asset			4,188						5,819
Property and equipment			3,759						—
Other			3,691						2,812
Total deferred tax liabilities			93,387						80,445
Net deferred tax liabilities before valuation allowance			(61,073)						(43,708)
Valuation allowance			(5,942)						(6,012)
Net deferred tax liabilities			$	(67,015)					$	(49,720)
Reported as:
Deferred tax assets			$	4,158					$	11,711
Deferred tax liabilities			(71,173)						(61,431)
Net deferred tax liabilities			$	(67,015)					$	(49,720)

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of income taxes calculated at the U.S. federal statutory rate to the provision for income taxes (dollars in thousands):

			Year Ended December 31,
			2020						2019						2018
U.S. federal statutory rate			21		%				21		%				21		%
Tax at the U.S. federal statutory rate			$	30,177					$	47,168					$	43,115
U.S. state income tax, net of federal tax benefit of $522, $652 and $644, respectively			1,965						2,452						2,422
Net incremental income tax expense from foreign earnings (1)			5,732						6,314						6,031
Non-deductible compensation expense			1,050						2,074						1,827
Global intangible low-taxed income tax (2)			(1,863)						1,100						763
Net tax benefit resulting from the enactment of the Tax Act			—						—						(1,494)
Other taxes and adjustments, net			59						885						(561)
Provision for income taxes			$	37,120					$	59,993					$	52,103
Effective tax rate			25.8		%				26.7		%				25.4		%

(1)Includes a $2.0 million, $2.3 million and $3.3 million foreign permanent tax benefit related to an inflation index adjustment allowed under Mexico tax law for the years ended December 31, 2020, 2019 and 2018, respectively.

(2)The global intangible low-taxed income tax (“GILTI tax”) provisions for foreign operations in the U.S. federal tax code became effective in 2018, and based on preliminary IRS guidance, the Company recognized $1.1 million and $0.8 million of income tax expense in 2019 and 2018, respectively, as a result of the GILTI tax. In July 2020, the Internal Revenue Service finalized regulations for the GILTI tax. The finalized regulations effectively eliminated the impact of the incremental GILTI tax to the Company and permitted retroactive application. As a result, the Company recognized a $1.9 million income tax benefit in 2020 related to the reversal of the 2019 and 2018 GILTI tax expense.

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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-SubTopic 10
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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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