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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The components of earnings before income taxes consisted of the following for the years ended December 31:
(In thousands)202420232022
United States$195,866 $92,679 $550,030 
Foreign(6,528)(9,675)(24,575)
Total earnings before income taxes$189,338 $83,004 $525,455 
The provision for income taxes in the Consolidated Statements of Income was as follows for the years ended December 31:
(In thousands)202420232022
Current:
Federal$45,922 $15,454 $114,744 
State and local6,887 1,752 22,998 
Foreign735 (464)2,016 
Total current provision53,544 16,742 139,758 
Deferred:
Federal(2,249)5,824 (3,786)
State and local(425)824 (285)
Foreign(4,399)(4,581)(5,206)
Total deferred provision (benefit)(7,073)2,067 (9,277)
Provision for income taxes$46,471 $18,809 $130,481 
The Company had cash and cash equivalents of approximately $165.8 million and $66.2 million at December 31, 2024 and 2023, respectively, of which approximately 11 percent and 19 percent was held by subsidiaries in foreign countries. The
Company examined the potential liabilities related to investments in foreign subsidiaries and concluded that there are no material deferred tax liabilities that should be recorded.

The provision for income taxes differs from the amount computed by applying the federal statutory rate of 21 percent for 2024, 2023, and 2022 to income before income taxes for the following reasons for the years ended December 31:
(In thousands)202420232022
Income tax at federal statutory rate$39,761 $17,431 $110,345 
State income tax, net of federal income tax impact5,105 2,035 17,944 
Section 162(m) permanent addback3,735 1,896 3,784 
Federal tax credits(1,002)(1,219)(1,638)
Share-based payment compensation excess tax benefit(346)(242)(509)
Other(782)(1,092)555 
Provision for income taxes$46,471 $18,809 $130,481 
At December 31, 2024, the Company had domestic federal income taxes receivable of $5.6 million, domestic state income taxes receivable of $3.7 million, and foreign taxes receivable of $3.3 million recorded. At December 31, 2023, the Company had domestic federal income taxes receivable of $7.7 million, domestic state income taxes receivable of $5.8 million, and foreign taxes receivable of $3.2 million recorded.

Deferred Income Tax Assets and Liabilities and Valuation Allowances

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31:
(In thousands)20242023
Deferred tax assets:
Stock-based compensation$1,836 $1,840 
Pension909 1,133 
Deferred compensation11,114 10,223 
Warranty13,540 13,936 
Convertible debt bond hedge7,323 12,289 
Inventory24,007 20,811 
Research and experimental costs9,018 6,845 
Other6,963 7,043 
Lease obligation asset57,528 62,460 
Net operating loss, interest, and tax credit carryforwards15,152 13,231 
Total deferred tax assets before valuation allowance147,390 149,811 
Less valuation allowance(7,657)(7,300)
Total deferred tax assets net of valuation allowance139,733 142,511 
Deferred tax liabilities:
Lease obligation liability(54,106)(59,212)
Fixed assets(40,432)(45,995)
Intangible assets(64,953)(66,398)
Total deferred tax liabilities(159,491)(171,605)
Net deferred tax liabilities$(19,758)$(29,094)
At December 31, 2024 and 2023, the Company had net foreign deferred tax liabilities of $8.7 million and $15.4 million, respectively, primarily related to intangible assets, fixed assets, foreign pension obligations, and net operating loss carryforwards net of any related valuation allowances included in other long-term liabilities on the Consolidated Balance Sheets.
As of December 31, 2024, the Company had deferred tax assets recorded related to foreign net operating losses and tax credit carryforwards of $15.2 million, net. This includes $1.7 million related to U.K. entities, $5.1 million related to Italian entities, $7.5 million related to Hong Kong entities, and $0.9 million related to other foreign entities. The net operating losses and tax credit carryforwards have indefinite lives.

The foreign valuation allowance for Hong Kong deferred tax assets as of December 31, 2024 and 2023 was $7.5 million and $7.2 million, respectively. Based upon historical results and estimated future results, it is the judgment of management that these tax carryforward attributes related to Hong Kong entities are not likely to be realized. The Company has concluded it is more likely than not that it will realize the benefit of all other existing deferred tax assets, net of the valuation allowances mentioned above.

Unrecognized Tax Benefits

The following table reconciles the total amounts of unrecognized tax benefits, at December 31:
(In thousands)202420232022
Balance at beginning of period$24,395 $23,376 $20,462 
Changes in tax positions of prior years— 218 — 
Additions based on tax positions related to the current year1,219 1,195 5,758 
Decreases due to settlements of liabilities— — (904)
Decreases due to closure of tax years(699)(394)(1,940)
Balance at end of period$24,915 $24,395 $23,376 
In addition, the total amount of accrued interest and penalties related to taxes, recognized as a liability, was $9.6 million, $7.2 million, and $5.1 million at December 31, 2024, 2023, and 2022, respectively.

The total amount of unrecognized tax benefits, net of federal income tax benefits, of $33.9 million, $30.8 million, and $27.5 million at December 31, 2024, 2023, and 2022, respectively, would, if recognized, increase the Company’s earnings, and lower the Company's annual effective tax rate in the year of recognition.

The Company is subject to taxation in the United States and various states and foreign jurisdictions. In the normal course of business, the Company is subject to examinations by taxing authorities in these jurisdictions. For U.S. federal and state income tax purposes, tax years 2023, 2022, and 2021 remain subject to examination.

The Company has assessed its risks associated with all tax return positions and believes its tax reserve estimates reflect its best estimate of the deductions and positions it will be able to sustain, or it may be willing to concede as part of a settlement. At this time, the Company does not anticipate any material change in its tax reserves in the next twelve months. The Company will continue to monitor the progress and conclusion of all audits and will adjust its estimated liability as necessary.