Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Income Tax Provision (Benefit)

The following table summarizes the components of the income tax provision (benefit) (in millions):


	Year Ended December 31,
	2024		2023		2022
Current:
Federal	$	76.9	$	87.8	$	91.5
Foreign	3.0		5.8		7.2
State	24.8		29.0		32.6
Total current taxes	104.7		122.6		131.3

Deferred:
Federal	13.7		22.0		25.5
Foreign	1.7		0.6		(0.6)
State	3.9		5.9		5.1
Total deferred taxes	19.3		28.5		30.0
Provision for (benefit from) income taxes	$	124.0	$	151.1	$	161.3

Principal Reason for the Difference Between Effective Income Tax Rate and the Statutory Federal Income

The following table is a reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the periods presented:


	Year Ended December 31,
	2024		2023		2022
U.S. federal income taxes at statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	4.7	%	4.7	%	4.8	%
Share-based payments	(1.0)	%	(0.8)	%	(0.4)	%
Non-deductible meals and entertainment	0.5	%	0.4	%	0.2	%
Other	0.3	%	0.5	%	0.4	%
Effective tax rate	25.5	%	25.8	%	26.0	%

Components of the Company's Deferred Taxes

The following table presents temporary differences that give rise to deferred tax assets and liabilities for the periods presented (in millions):


	December 31,
	2024		2023
Deferred tax assets:
Deferred compensation	$	13.6	$	11.4
Allowance for doubtful accounts	6.2		6.8
Accrued vacation and other	13.1		10.8
Inventory valuation	19.4		17.4
Tax loss carryforwards1	3.3		0.4
Unrealized (gain) loss on financial derivatives	(1.4)		(1.7)
Lease liability	161.2		131.5
Total deferred tax assets	215.4		176.6

Deferred tax liabilities:
Excess book over tax depreciation and amortization	(113.8)		(75.1)
Lease right-of-use asset	(138.6)		(119.5)
Total deferred tax liabilities	(252.4)		(194.6)
Net deferred income tax assets (liabilities)	$	(37.0)	$	(18.0)

1.Composed of interest limitation carryforwards and state net operating loss carryforwards.