Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income before income taxes and equity earnings (losses)

Income before income taxes and equity earnings is attributable to the following jurisdictions (in thousands):

	Year Ended December 31,
	2017		2016		2015
United States	$	259,436	$	234,646	$	203,269
Foreign	9,746		6,732		4,881
Total	$	269,182	$	241,378	$	208,150

Provision for income taxes

The provision for income taxes consisted of the following (in thousands):

	Year Ended December 31,
	2017			2016			2015
Current:
Federal	$	71,329		$	77,000		$	65,676
State and other	11,289			12,182			10,263
Total current provision for income taxes	82,618			89,182			75,939
Deferred:
Federal	(6,643		)	4,079			4,568
State and other	2,007			(330		)	(370		)
Total deferred provision for income taxes	(4,636		)	3,749			4,198
Provision for income taxes	$	77,982		$	92,931		$	80,137

Reconciliation of the U.S. federal statutory tax rate to effective tax rate on income before income taxes and equity earnings (losses)

A reconciliation of the U.S. federal statutory tax rate to our effective tax rate on Income before income taxes and equity earnings is as follows:

	Year Ended December 31,
	2017		2016		2015
Federal statutory rate	35.00	%	35.00	%	35.00	%
Change in valuation allowance	(0.06	)	0.10		0.20
Stock-based compensation	(4.67	)	—		—
Re-measurement of net deferred tax liability	(4.46	)	—		—
Other, primarily state income tax rate	3.16		3.40		3.30
Total effective tax rate	28.97	%	38.50	%	38.50	%

Components of deferred tax assets and liabilities

The table below presents the components of our deferred tax assets and liabilities (in thousands):

	December 31,
	2017			2016
Deferred tax assets:
Product inventories	$	—		$	7,010
Accrued expenses	—			3,978
Allowance for doubtful accounts	—			396
Total current	—			11,384
Component reclassified for net presentation	—			(5,368		)
Total current, net	—			6,016
Product inventories	4,287			—
Accrued expenses	1,804			—
Allowance for doubtful accounts	154			—
Leases	1,188			1,920
Share-based compensation	8,884			13,778
Uncertain tax positions	2,087			2,746
Net operating losses	5,441			5,735
Interest rate swaps	—			674
Other	1,475			2,465
Total non-current	25,320			27,318
Less: Valuation allowance	(5,440		)	(5,735		)
Component reclassified for net presentation	(19,071		)	(20,781		)
Total non-current, net	809			802
Total deferred tax assets	809			6,818
Deferred tax liabilities:
Trade discounts on purchases	—			2,698
Prepaid expenses	—			2,670
Total current	—			5,368
Component reclassified for net presentation	—			(5,368		)
Total current, net	—			—
Trade discounts on purchases	1,520			—
Prepaid expenses	1,857			—
Intangible assets, primarily goodwill	29,348			42,930
Depreciation	10,870			12,326
Interest rate swaps	61			—
Total non-current	43,656			55,256
Component reclassified for net presentation	(19,071		)	(20,781		)
Total non-current, net	24,585			34,475
Total deferred tax liabilities	24,585			34,475
Net deferred tax liability	$	23,776		$	27,657

Summary of activity related to uncertain tax positions

The following table summarizes the activity related to uncertain tax positions for the past three years (in thousands):

	2017		2016		2015
Balance at beginning of year	$	7,846	$	5,978	$	4,690
Increases for tax positions taken during a prior period	129		10		410
Increases for tax positions taken during the current period	3,260		2,819		1,782
Decreases resulting from the expiration of the statute of limitations	869		961		904
Decreases relating to settlements	429		—		—
Balance at end of year	$	9,937	$	7,846	$	5,978