XML 34 R19.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes for the years ended December 31, 2020, 2019 and 2018, consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |  |
Federal |  | $ | 79,926 |  |  | $ | 107,699 |  |  | $ | 99,830 |
State |  | 27,401 |  |  | 39,028 |  |  | 38,356 |
Foreign |  | 20,018 |  |  | 33,227 |  |  | 35,007 |
Deferred: |  |  |  |  |  |
Federal and state |  | (9,089) |  |  | (9,959) |  |  | (15,849) |
Foreign |  | (2,650) |  |  | 1,087 |  |  | (30) |
|  | $ | 115,606 |  |  | $ | 171,082 |  |  | $ | 157,314 |
Income before the provision for income taxes for the years ended December 31, 2020, 2019 and 2018, consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Domestic |  | $ | 378,876 |  |  | $ | 545,695 |  |  | $ | 485,489 |
Foreign |  | 43,006 |  |  | 79,820 |  |  | 106,113 |
|  | $ | 421,882 |  |  | $ | 625,515 |  |  | $ | 591,602 |
The income taxes shown above varied from the statutory federal income tax rates for these periods as follows:
|  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Federal U.S. income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit |  | 4.9 |  |  | 4.9 |  |  | 4.7 |
Permanent book/tax differences |  | 0.3 |  |  | 0.5 |  |  | 0.2 |
Compensation book/tax differences |  | 1.3 |  |  | 0.6 |  |  | 0.4 |
Non-U.S. income taxed at different rates, net of foreign tax credits |  | 1.7 |  |  | 2.1 |  |  | 2.0 |
Federal tax credits |  | (1.5) |  |  | (1.4) |  |  | (1.7) |
Tax impact of uncertain tax positions |  | 0.1 |  |  | 0.2 |  |  | 0.8 |
Tax effects of TCJA |  | — |  |  | — |  |  | 0.4 |
Other, net |  | (0.4) |  |  | (0.5) |  |  | (1.2) |
Effective tax rate |  | 27.4 | % |  | 27.4 | % |  | 26.6 | %
The deferred portion of the tax (benefit) provision consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Accrued expenses, deducted for tax when paid |  | $ | (19,115) |  |  | $ | (17,797) |  |  | $ | (21,884) |
Capitalized costs for books, deducted for tax |  | 1,904 |  |  | 3,246 |  |  | (4,832) |
Depreciation |  | 6,732 |  |  | 3,526 |  |  | 10,071 |
Other, net |  | (1,260) |  |  | 2,153 |  |  | 766 |
|  | $ | (11,739) |  |  | $ | (8,872) |  |  | $ | (15,879) |
The components of the deferred income tax amounts at December 31, 2020 and 2019, were as follows (in thousands):
|  | December 31,
|  | 2020 |  | 2019
Deferred Income Tax Assets |  |  |  |
Employee deferred compensation and other benefit obligations |  | $ | 102,478 |  |  | $ | 105,096 |
Deferred Payroll Taxes (CARES Act) |  | 27,086 |  |  | — |
Credits and net operating loss carryforwards |  | 30,651 |  |  | 25,130 |
Stock-based compensation |  | 3,637 |  |  | 7,805 |
Allowance for credit losses |  | 5,272 |  |  | 7,944 |
Workers’ compensation |  | 3,774 |  |  | 3,929 |
Operating lease liabilities |  | 59,249 |  |  | 51,932 |
Other |  | 13,361 |  |  | 10,256 |
Total deferred income tax assets |  | 245,508 |  |  | 212,092 |
Deferred Income Tax Liabilities |  |  |  |
Amortization of intangible assets |  | (24,163) |  |  | (22,009) |
Property and equipment basis differences |  | (25,555) |  |  | (16,981) |
Right-of-use assets |  | (49,833) |  |  | (44,448) |
Other |  | (8,922) |  |  | (7,278) |
Total deferred income tax liabilities |  | (108,473) |  |  | (90,716) |
Valuation allowance |  | (24,132) |  |  | (21,618) |
Total deferred income tax assets, net |  | $ | 112,903 |  |  | $ | 99,758 |
Credits and net operating loss carryforwards primarily include tax-effected net operating losses in foreign countries of $27.6 million that expire in 2021 and later; and California enterprise zone tax credits of $2.2 million that expire in 2023. Of the $2.2 million of California enterprise zone tax credits, the Company expects that it will utilize $0.7 million of these credits prior to expiration. Valuation allowances of $22.6 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.5 million has been maintained against California enterprise zone tax credits. As of December 31, 2020, the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of foreign subsidiaries that may be repatriated. The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2018 to December 31, 2020 (in thousands):
|  | December 31,
|  | 2020 |  | 2019 |  | 2018
Balance at beginning of period |  | $ | 9,354 |  |  | $ | 8,418 |  |  | $ | 2,886 |
Gross increases—tax positions in prior years |  | 220 |  |  | — |  |  | 3,259 |
Gross decreases—tax positions in prior years |  | — |  |  | (760) |  |  | (8) |
Gross increases—tax positions in current year |  | 1,678 |  |  | 1,703 |  |  | 2,284 |
Settlements |  | — |  |  | (4) |  |  | — |
Lapse of statute of limitations |  | (1,467) |  |  | (3) |  |  | (3) |
Balance at end of period |  | $ | 9,785 |  |  | $ | 9,354 |  |  | $ | 8,418 |
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $9.8 million, $9.3 million and $8.3 million or the years ended December 31, 2020, 2019 and 2018, respectively. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2020 was $0.5 million, including less than $0.1 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2019 was $0.5 million, including a $0.2 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2018, was $0.3 million. The Company does not believe it is reasonably possible that the settlement of tax uncertainties will occur within the next twelve months. The Company’s major income tax jurisdictions are the United States, Australia, Belgium, Canada, France, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2017 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2016 and subsequent years. Generally, for foreign countries, the Company remains subject to examination for 2013 and subsequent 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 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration