Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Loss Before Income Tax, Domestic and Foreign

For financial statement purposes, earnings before income taxes by source was comprised of the following:

	Year Ended December 31,
(in thousands)	2023		2022		2021
Domestic	$	38,375	$	43,977	$	176,042
Foreign	14,492		17,494		18,262
Earnings before income taxes	$	52,867	$	61,471	$	194,304

Reconciliation of Income Tax Expense

A reconciliation of the federal statutory rate of 21% to the effective rate follows:

	Year Ended December 31,
	2023		2022		2021
Tax at statutory rate	21.0	%	21.0	%	21.0	%
Stock compensation	57.1	%	53.4	%	11.6	%
State income taxes	16.5	%	13.4	%	7.4	%
Effect of foreign operations	19.5	%	6.6	%	2.0	%
Effect of current year credits	(9.9)	%	(13.2)	%	(2.4)	%
Change in unrecognized tax benefits	(6.9)	%	0.1	%	(2.8)	%
Other permanent differences	1.7	%	0.9	%	0.3	%
Prior year return to provision adjustments	0.3	%	1.7	%	(0.2)	%
Valuation allowance	11.4	%	(3.0)	%	(7.1)	%
Other, net	(0.9)	%	(1.0)	%	0.8	%
Effective income tax rate	109.8	%	79.9	%	30.6	%

Components of Income Tax Expense

The components of income tax expense (benefit) are as follows:

	Year Ended December 31,
(in thousands)	2023		2022		2021
Current expense (benefit)
Federal	$	58,480	$	62,878	$	(7,398)
State	9,644		21,473		15,106
Foreign	4,385		4,570		3,690
Total current	72,509		88,921		11,398
Deferred (benefit) expense
Federal	(28,084)		(25,923)		56,716
State	1,316		(13,321)		(1,205)
Foreign	12,305		(563)		(7,545)
Total deferred	(14,463)		(39,807)		47,966
Total income tax expense	$	58,046	$	49,114	$	59,364

Deferred Tax Assets

Deferred tax assets (liabilities) consist of the following:

	December 31,
(in thousands)	2023		2022
Deferred tax assets
Net operating loss carryforwards	$	20,852	$	27,059
Accrued liabilities	64,410		55,527
Intangible assets	143,386		155,238
Lease obligations	79,645		81,412
Other assets	4,082		8,804
Foreign tax credit carryforwards	856		2,991
Total deferred tax assets	313,231		331,031
Valuation allowance	(9,340)		(3,158)
Deferred tax assets, net	303,891		327,873
Deferred tax liabilities
Rental merchandise	(212,137)		(236,381)
Property assets	(2,089)		(16,415)
Lease assets	(77,825)		(79,725)
Other liabilities	(650)		(452)
Total deferred tax liabilities	(292,701)		(332,973)
Net deferred taxes	$	11,190	$	(5,100)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

	Year Ended December 31,
(in thousands)	2023		2022		2021
Beginning unrecognized tax benefit balance	$	5,100	$	6,536	$	22,184
Additions based on tax positions related to current year	97		14		461
Reductions based on tax positions related to current year	—		(488)		—
Additions for tax positions of prior years	759		21		4,119
Reductions for tax positions of prior years	(4,735)		(983)		(3,006)
Settlements	—		—		(17,222)
Ending unrecognized tax benefit balance	$	1,221	$	5,100	$	6,536