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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022, 2021 and 2020 consist of the following (in thousands):

			Year Ended December 31,
			2022						2021						2020
Income before income taxes (1):
Domestic			$	253,560					$	110,535					$	98,111
Foreign			70,073						55,967						45,588
Income before income taxes			$	323,633					$	166,502					$	143,699
Current income taxes:
U.S. Federal			$	23,034					$	14,031					$	14,951
Foreign			15,444						15,242						9,909
U.S. state and local			3,421						2,045						2,158
Current provision for income taxes			41,899						31,318						27,018
Deferred provision (benefit) for income taxes:
U.S. Federal			26,732						11,008						4,485
Foreign			(458)						(1,542)						5,287
U.S. state and local			1,965						809						330
Total deferred provision for income taxes			28,239						10,275						10,102
Provision for income taxes			$	70,138					$	41,593					$	37,120

(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,
			2022						2021
Deferred tax assets:
Property and equipment in foreign jurisdictions			$	14,585					$	11,452
Finance receivables			19,125						7,421
Accrued fees on forfeited pawn loans			8,168						6,645
Deferred cost of goods sold deduction			2,800						1,989
Accrued compensation, payroll taxes and employee benefits			3,699						4,294
U.S. state and certain foreign net operating losses			6,504						6,429
Other			5,167						3,811
Total deferred tax assets			60,048						42,041
Deferred tax liabilities:
Intangible assets			150,397						126,283
Leased merchandise and property and equipment in domestic jurisdictions			40,950						24,035
Net operating lease asset			2,646						3,726
Other			3,929						2,052
Total deferred tax liabilities			197,922						156,096
Net deferred tax liabilities before valuation allowance			(137,874)						(114,055)
Valuation allowance			(6,504)						(6,429)
Net deferred tax liabilities			$	(144,378)					$	(120,484)
Reported as:
Deferred tax assets			$	7,381					$	5,614
Deferred tax liabilities			(151,759)						(126,098)
Net deferred tax liabilities			$	(144,378)					$	(120,484)

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,
			2022						2021						2020
U.S. federal statutory rate			21		%				21		%				21		%
Tax at the U.S. federal statutory rate			$	67,963					$	35,149					$	30,177
U.S. state income tax, net of federal tax benefit of $1,131, $599 and $522, respectively			4,255						2,255						1,965
Benefit from gain on revaluation of contingent acquisition consideration			(4,580)						—						—
Net incremental income tax expense from foreign earnings (1)			272						2,007						5,732
Non-deductible compensation expense			3,297						1,943						1,050
Global intangible low-taxed income tax			—						—						(1,863)
Other taxes and adjustments, net			(1,069)						239						59
Provision for income taxes			$	70,138					$	41,593					$	37,120
Effective tax rate			21.7		%				25.0		%				25.8		%

(1)Includes an $8.0 million, $6.3 million and $2.0 million foreign permanent tax benefit related to an inflation index adjustment allowed under Mexico tax law for the years ended December 31, 2022, 2021 and 2020, respectively.

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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
-Paragraph 9
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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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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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