Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
| Income Tax Disclosure [Abstract] |
|
| Income Before Provision for Income Taxes |
Income before provision for income taxes in 2023, 2022 and 2021 consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
U.S. |
|
$ |
640,255 |
|
|
$ |
560,115 |
|
|
$ |
611,267 |
|
Foreign |
|
|
12,185 |
|
|
|
12,718 |
|
|
|
14,438 |
|
Income before provision for income taxes |
|
$ |
652,440 |
|
|
$ |
572,833 |
|
|
$ |
625,705 |
|
|
| Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes |
The differences between the U.S. Federal statutory income tax provision (using the statutory rate of 21%) and the Company’s consolidated provision for income taxes for 2023, 2022 and 2021 are summarized as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Federal income tax provision based on the statutory rate |
|
$ |
137,012 |
|
|
$ |
120,295 |
|
|
$ |
131,398 |
|
State and local income taxes, net of related Federal income taxes |
|
|
19,473 |
|
|
|
15,978 |
|
|
|
15,108 |
|
Non-resident withholding and foreign income taxes |
|
|
25,301 |
|
|
|
23,276 |
|
|
|
21,833 |
|
Foreign tax and other tax credits |
|
|
(25,786 |
) |
|
|
(19,849 |
) |
|
|
(23,509 |
) |
Foreign derived intangible income |
|
|
(17,850 |
) |
|
|
(15,068 |
) |
|
|
(16,800 |
) |
Excess tax benefits from equity-based compensation |
|
|
(3,397 |
) |
|
|
(2,169 |
) |
|
|
(18,911 |
) |
Non-deductible expenses, net |
|
|
5,040 |
|
|
|
3,322 |
|
|
|
4,501 |
|
Unrecognized tax provision (benefit), net of related Federal income taxes |
|
|
16 |
|
|
|
(3,788 |
) |
|
|
4,372 |
|
Other |
|
|
(6,487 |
) |
|
|
(1,427 |
) |
|
|
(2,754 |
) |
Provision for income taxes |
|
$ |
133,322 |
|
|
$ |
120,570 |
|
|
$ |
115,238 |
|
|
| Components of Consolidated Provision for Income Taxes |
The components of the 2023, 2022 and 2021 consolidated provision for income taxes were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Provision for Federal income taxes |
|
|
|
|
|
|
|
|
|
Current provision |
|
$ |
100,287 |
|
|
$ |
76,552 |
|
|
$ |
74,910 |
|
Deferred (benefit) provision |
|
|
(16,467 |
) |
|
|
4,125 |
|
|
|
(2,051 |
) |
Total provision for Federal income taxes |
|
|
83,820 |
|
|
|
80,677 |
|
|
|
72,859 |
|
Provision for state and local income taxes |
|
|
|
|
|
|
|
|
|
Current provision |
|
|
27,243 |
|
|
|
20,489 |
|
|
|
16,507 |
|
Deferred (benefit) provision |
|
|
(2,991 |
) |
|
|
577 |
|
|
|
(461 |
) |
Total provision for state and local income taxes |
|
|
24,252 |
|
|
|
21,066 |
|
|
|
16,046 |
|
Provision for non-resident withholding and foreign income taxes |
|
|
|
|
|
|
|
|
|
Current provision |
|
|
25,301 |
|
|
|
23,276 |
|
|
|
21,833 |
|
Deferred (benefit) provision |
|
|
(51 |
) |
|
|
(4,449 |
) |
|
|
4,500 |
|
Total provision for non-resident withholding and foreign income taxes |
|
|
25,250 |
|
|
|
18,827 |
|
|
|
26,333 |
|
Provision for income taxes |
|
$ |
133,322 |
|
|
$ |
120,570 |
|
|
$ |
115,238 |
|
|
| Significant Components of Net Deferred Income Taxes |
As of December 31, 2023 and January 1, 2023, the significant components of net deferred income taxes were as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
January 1, 2023 |
|
Deferred income tax assets |
|
|
|
|
|
|
Operating lease liabilities |
|
$ |
53,720 |
|
|
$ |
56,750 |
|
Accruals and reserves |
|
|
16,176 |
|
|
|
11,330 |
|
Insurance reserves |
|
|
12,592 |
|
|
|
13,039 |
|
Non-cash equity-based compensation expense |
|
|
10,309 |
|
|
|
8,849 |
|
Foreign tax credit |
|
|
16,798 |
|
|
|
13,464 |
|
Other |
|
|
13,181 |
|
|
|
12,150 |
|
Deferred income tax assets before valuation allowance |
|
|
122,776 |
|
|
|
115,582 |
|
Less, valuation allowance |
|
|
(18,166 |
) |
|
|
(15,001 |
) |
Deferred income tax assets, net |
|
|
104,610 |
|
|
|
100,581 |
|
Deferred income tax liabilities |
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
50,883 |
|
|
|
54,057 |
|
Capitalized software |
|
|
14,523 |
|
|
|
27,443 |
|
Depreciation, amortization and asset basis differences |
|
|
12,155 |
|
|
|
15,851 |
|
Unrealized gain on investments |
|
|
13,369 |
|
|
|
9,065 |
|
Deferred income tax liabilities |
|
|
90,930 |
|
|
|
106,416 |
|
Net deferred income taxes |
|
$ |
13,680 |
|
|
$ |
(5,835 |
) |
|
| Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31, 2023, January 1, 2023 and January 2, 2022 is as follows:
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|
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|
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|
December 31, 2023 |
|
|
January 1, 2023 |
|
|
January 2, 2022 |
|
|
|
|
|
|
|
|
|
|
|
Unrecognized tax benefits at beginning of period |
|
$ |
3,902 |
|
|
$ |
7,690 |
|
|
$ |
3,318 |
|
Additions for tax positions of current year |
|
|
961 |
|
|
|
887 |
|
|
|
2,611 |
|
Additions for tax positions of prior years |
|
|
503 |
|
|
|
958 |
|
|
|
2,624 |
|
Reductions for changes in prior year tax positions |
|
|
(551 |
) |
|
|
(4,521 |
) |
|
|
(379 |
) |
Reductions for lapses of applicable statute of limitations |
|
|
(897 |
) |
|
|
(1,112 |
) |
|
|
(484 |
) |
Unrecognized tax benefits at end of period |
|
$ |
3,918 |
|
|
$ |
3,902 |
|
|
$ |
7,690 |
|
|