XML 79 R25.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income before income taxes are as follows:
| 2019 |  | 2018 |  | 2017
Domestic | $ | 119,166 |  |  | $ | 121,674 |  |  | $ | 124,472 |
Foreign | 62,060 |  |  | 55,666 |  |  | 47,855 |
| $ | 181,226 |  |  | $ | 177,340 |  |  | $ | 172,327 |
The components of provision for income taxes for all periods presented were as follows:
| 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Federal | $ | 18,655 |  |  | $ | 32,880 |  |  | $ | 56,836 |
State and local | 3,765 |  |  | 5,012 |  |  | 5,746 |
Foreign | 11,940 |  |  | 11,771 |  |  | 10,773 |
| 34,360 |  |  | 49,663 |  |  | 73,355 |
Deferred: |  |  |  |  |
Federal | 2,309 |  |  | (2,489 | ) |  | (22,061 | )
State and local | 1,343 |  |  | (200 | ) |  | 800 |
Foreign | 1,492 |  |  | (133 | ) |  | 1,095 |
| 5,144 |  |  | (2,822 | ) |  | (20,166 | )
| $ | 39,504 |  |  | $ | 46,841 |  |  | $ | 53,189 |
A reconciliation between taxes computed at the federal statutory rate and the effective tax rate is as follows:
| December 31,
| 2019 |  | 2018 |  | 2017
Income taxes at federal statutory rate | 21.0 | % |  | 21.0 | % |  | 35.0 | %
Effects of foreign operations | (0.1 | ) |  | (0.7 | ) |  | (4.5 | )
Stock-based compensation | (3.4 | ) |  | (2.1 | ) |  | (2.2 | )
State and local income taxes - net of federal income tax benefit | 2.3 |  |  | 2.4 |  |  | 2.0 |
Nondeductible items | 0.7 |  |  | 0.1 |  |  | 0.5 |
Impact of tax reform | — |  |  | 2.0 |  |  | (4.4 | )
Receivable adjustment | — |  |  | — |  |  | 2.7 |
Prepaid tax adjustment related to prior years | — |  |  | 3.8 |  |  | — |
Other | 1.3 |  |  | (0.1 | ) |  | 1.8 |
Effective rate | 21.8 | % |  | 26.4 | % |  | 30.9 | %
The primary changes between the Company’s effective tax rate for the year ended December 31, 2019 and 2018 are due to the year-over-year benefit resulting from the exercising and vesting of shared-based awards, a decrease in the state taxes incurred, a decrease in prepaid tax adjustments, and an increase in 2019 pre-tax income in jurisdictions with low tax rates. The components of deferred tax assets and liabilities are as follows:
| December 31,
| 2019 |  | 2018
Deferred taxes assets |  |  |
Receivable allowances | $ | 8,537 |  |  | $ | 8,702 |
Inventory | 3,247 |  |  | 2,274 |
Unrealized loss | — |  |  | 282 |
Accrued expenses | 1,453 |  |  | 1,113 |
Deferred compensation | 8,643 |  |  | 10,217 |
Deferred rent | — |  |  | 4,257 |
Net carryforwards | 7,531 |  |  | 647 |
Lease liability | 41,382 |  |  | — |
Other | 493 |  |  | 1,557 |
Gross deferred tax assets before valuation allowance | 71,286 |  |  | 29,049 |
Less: valuation allowance | (2,230 | ) |  | (649 | )
Gross deferred tax assets after valuation allowance | 69,056 |  |  | 28,400 |
Deferred tax liabilities |  |  |
Depreciation and amortization | (26,978 | ) |  | (13,009 | )
Unremitted earnings of foreign subsidiaries | (3,025 | ) |  | (2,597 | )
Right-of-use asset | (37,248 | ) |  | — |
Amortization of goodwill | (7,682 | ) |  | (7,514 | )
Gross deferred tax liabilities | (74,933 | ) |  | (23,120 | )
Net deferred tax (liabilities)/assets | $ | (5,877 | ) |  | $ | 5,280 |
The Company applies the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax‑planning strategies in making this assessment. The Company’s aggregate valuation allowance of $2,230 for the year ended December 31, 2019 relates to a deferred tax asset on an outside basis difference that the Company does not expect to realize, a net operating loss deferred tax asset in its Luxembourg subsidiary, and a net operating loss deferred tax asset in its China joint venture. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| December 31,
| 2019 |  | 2018 |  | 2017
Beginning Balance | $ | 1,511 |  |  | $ | 361 |  |  | $ | 1,407 |
Additions related to current period tax positions | — |  |  | 1,150 |  |  | — |
Reductions for tax positions of prior years | (361 | ) |  | — |  |  | (1,046 | )
Ending Balance | $ | 1,150 |  |  | $ | 1,511 |  |  | $ | 361 |
For the years ended December 31, 2019, 2018 and 2017 the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is approximately $1,150, $1,511 and $361, in the aggregate, respectively. The Company recognizes interest and penalties, if any, related to uncertain income tax positions in income tax expense. Accrued interest and penalties on unrecognized tax benefits and interest and penalty expense was immaterial to the consolidated financial statements for all periods presented. The unrecognized tax benefits are not expected to materially change in the next twelve months. The Company files income tax returns in the U.S., for federal, state, and local purposes, and in certain foreign jurisdictions. The Company's tax years 2016 through 2019 remain open to examination by most taxing authorities. During 2017, the U.S. Internal Revenue Service ("IRS") completed its audit of the Company's 2014 U.S. income tax return. The Company’s consolidated financial statements provide for any related tax liability on amounts that may be repatriated from foreign operations, aside from undistributed earnings of certain of the Company’s foreign subsidiaries that are intended to be indefinitely reinvested in operations outside the U.S. The deferred tax liability of $3,025 at December 31, 2019 reflects the withholding tax on amounts that may be repatriated from foreign operations.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration