Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign

The components of earnings before income taxes consisted of the following for the years ended December 31:


(In thousands)	2022		2021		2020
United States	$	550,030	$	378,460	$	216,234
Foreign	(24,575)		3,584		(6,753)
Total earnings before income taxes	$	525,455	$	382,044	$	209,481

Schedule of Provisions of Income Taxes

The provision for income taxes in the Consolidated Statements of Income was as follows for the years ended December 31:


(In thousands)	2022		2021		2020
Current:
Federal	$	114,744	$	78,604	$	42,541
State and local	22,998		17,044		9,165
Foreign	2,016		1,936		839
Total current provision	139,758		97,584		52,545
Deferred:
Federal	(3,786)		2,192		2,342
State and local	(285)		(517)		(671)
Foreign	(5,206)		(4,954)		(3,175)
Total deferred provision	(9,277)		(3,279)		(1,504)
Provision for income taxes	$	130,481	$	94,305	$	51,041

Schedule of Income Tax Reconciliation

The provision for income taxes differs from the amount computed by applying the federal statutory rate of 21 percent for 2022, 2021, and 2020 to income before income taxes for the following reasons for the years ended December 31:


(In thousands)	2022		2021		2020
Income tax at federal statutory rate	$	110,345	$	80,229	$	43,991
State income tax, net of federal income tax impact	17,944		13,056		6,710
Section 162(m) permanent addback	3,784		6,153		3,015

Federal tax credits	(1,638)		(1,230)		(1,307)
Share-based payment compensation excess tax benefit	(509)		(1,191)		(190)

Other	555		(2,712)		(1,178)
Provision for income taxes	$	130,481	$	94,305	$	51,041

Schedule of Deferred Tax Assets and Liabilities

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)	2022		2021
Deferred tax assets:

Stock-based compensation	$	2,268	$	2,632
Pension	1,271		8,594
Deferred compensation	15,091		15,923
Warranty	11,517		10,790
Convertible debt bond hedge	17,237		21,699
Inventory	20,758		16,502
Research and experimental costs	4,986		—
Other	6,630		5,792
Lease obligation asset	63,146		41,066
Net operating loss, interest, and tax credit carryforwards	12,924		10,132
Total deferred tax assets before valuation allowance	155,828		133,130
Less valuation allowance	(8,750)		(1,054)
Total deferred tax assets net of valuation allowance	147,078		132,076
Deferred tax liabilities:
Lease obligation liability	(60,487)		(38,770)
Fixed assets	(45,634)		(45,562)
Intangible assets	(67,640)		(87,035)
Total deferred tax liabilities	(173,761)		(171,367)

Net deferred tax liabilities	$	(26,683)	$	(39,291)

Schedule of Unrecognized Tax Benefits

The following table reconciles the total amounts of unrecognized tax benefits, at December 31:


(In thousands)	2022		2021		2020
Balance at beginning of period	$	20,462	$	8,921	$	8,214
Changes in tax positions of prior years	—		(69)		—
Additions based on tax positions related to the current year	5,758		12,826		1,720
Decreases due to settlements of liabilities	(904)		—		—
Closure of tax years	(1,940)		(1,216)		(1,013)
Balance at end of period	$	23,376	$	20,462	$	8,921