Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

Components of the provision for income taxes and the income to which it relates for the years ended December 31, 2021, 2020 and 2019 consist of the following (in thousands):


	Year Ended December 31,
	2021		2020		2019
Income before income taxes (1):
Domestic	$	110,535	$	98,111	$	145,570
Foreign	55,967		45,588		79,041
Income before income taxes	$	166,502	$	143,699	$	224,611

Current income taxes:
U.S. Federal	$	14,031	$	14,951	$	26,624
Foreign	15,242		9,909		21,904
U.S. state and local	2,045		2,158		2,553
Current provision for income taxes	31,318		27,018		51,081

Deferred provision (benefit) for income taxes:
U.S. Federal	11,008		4,485		7,498
Foreign	(1,542)		5,287		863
U.S. state and local	809		330		551
Total deferred provision for income taxes	10,275		10,102		8,912

Provision for income taxes	$	41,593	$	37,120	$	59,993

(1)Includes the allocation of certain administrative expenses and intercompany payments, such as royalties and interest, between domestic and foreign subsidiaries.

Schedule of Deferred Tax Assets and Liabilities

The principal deferred tax assets and liabilities consist of the following (in thousands):


	As of December 31,
	2021		2020
Deferred tax assets:
Property and equipment in foreign jurisdictions	$	11,452	$	9,905
Finance receivables	7,421		—
Accrued fees on forfeited pawn loans	6,645		5,246
Deferred cost of goods sold deduction	1,989		3,622
Accrued compensation, payroll taxes and employee benefits	4,294		4,235
U.S. state and certain foreign net operating losses	6,429		5,942
Other	3,811		3,364
Total deferred tax assets	42,041		32,314

Deferred tax liabilities:
Intangible assets	126,283		81,749
Leased merchandise and property and equipment in domestic jurisdictions	24,035		3,759
Net operating lease asset	3,726		4,188
Other	2,052		3,691
Total deferred tax liabilities	156,096		93,387

Net deferred tax liabilities before valuation allowance	(114,055)		(61,073)
Valuation allowance	(6,429)		(5,942)
Net deferred tax liabilities	$	(120,484)	$	(67,015)

Reported as:
Deferred tax assets	$	5,614	$	4,158
Deferred tax liabilities	(126,098)		(71,173)
Net deferred tax liabilities	$	(120,484)	$	(67,015)

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of income taxes calculated at the U.S. federal statutory rate to the provision for income taxes (dollars in thousands):


	Year Ended December 31,
	2021			2020			2019
U.S. federal statutory rate	21		%	21		%	21		%

Tax at the U.S. federal statutory rate	$	35,149		$	30,177		$	47,168
U.S. state income tax, net of federal tax benefit of $599, $522 and $652, respectively	2,255			1,965			2,452
Net incremental income tax expense from foreign earnings (1)	2,007			5,732			6,314
Non-deductible compensation expense	1,943			1,050			2,074
Global intangible low-taxed income tax	—			(1,863)			1,100

Other taxes and adjustments, net	239			59			885
Provision for income taxes	$	41,593		$	37,120		$	59,993

Effective tax rate	25.0		%	25.8		%	26.7		%

(1)Includes a $6.3 million, $2.0 million and $2.3 million foreign permanent tax benefit related to an inflation index adjustment allowed under Mexico tax law for the years ended December 31, 2021, 2020 and 2019, respectively.