Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income before income taxes and equity earnings (losses)

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


	Year Ended December 31,
	2021		2020		2019
United States	$	752,957	$	428,857	$	304,259
Foreign	71,188		22,817		13,215
Total	$	824,145	$	451,674	$	317,474

Provision for income taxes

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


	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	124,379	$	67,093	$	35,270
State and other	44,783		20,680		17,168
Total current provision for income taxes	169,162		87,773		52,438

Deferred:
Federal	2,970		(1,298)		4,154
State and other	1,680		(1,244)		(431)
Total deferred provision for income taxes	4,650		(2,542)		3,723
Provision for income taxes	$	173,812	$	85,231	$	56,161

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 in earnings is as follows:


	Year Ended December 31,
	2021		2020		2019
Federal statutory rate	21.00	%	21.00	%	21.00	%
Change in valuation allowance	(0.11)		(0.22)		0.10
Stock-based compensation	(3.67)		(6.34)		(7.40)

Other, primarily state income tax rate	3.87		4.43		3.99
Total effective tax rate	21.09	%	18.87	%	17.69	%

We reduce federal and state income taxes payable by the tax benefits associated with the exercise of deductible nonqualified stock options and the lapse of restrictions on deductible restricted stock awards. To the extent realized tax deductions exceed the amount of previously recognized deferred tax benefits related to share-based compensation, we record an excess tax benefit. We record all excess tax benefits or deficiencies as income tax benefit or expense in the income statement. We recorded excess tax benefits of $30.0 million to our income tax provision in 2021, $28.6 million in 2020 and $23.5 million in 2019.

Components of deferred tax assets and liabilities

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


	December 31,
	2021		2020
Deferred tax assets:








Product inventories	$	8,597	$	6,110
Accrued expenses	3,105		4,101

Leases	59,457		50,301
Share-based compensation	8,981		8,730
Uncertain tax positions	2,792		3,266
Net operating losses	2,524		3,829
Interest rate swaps	—		3,023

Other	3,839		3,628
Total non-current	89,295		82,988
Less: Valuation allowance	(2,086)		(3,166)
Component reclassified for net presentation	(86,113)		(78,542)
Total non-current, net	1,096		1,280

Total deferred tax assets	1,096		1,280

Deferred tax liabilities:






Trade discounts on purchases	2,566		2,218
Prepaid expenses	4,226		3,379
Leases	58,146		49,004
Intangible assets, primarily goodwill	36,936		34,244
Depreciation	19,369		17,350
Interest rate swaps	710		—
Total non-current	121,953		106,195
Component reclassified for net presentation	(86,113)		(78,542)
Total non-current, net	35,840		27,653

Total deferred tax liabilities	35,840		27,653

Net deferred tax liability	$	34,744	$	26,373

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):


	2021		2020		2019
Balance at beginning of year	$	15,553	$	13,582	$	12,179
Increases for tax positions taken during a prior period	—		1,363		771
Increases for tax positions taken during the current period	3,518		2,721		2,354
Decreases resulting from the expiration of the statute of limitations	3,185		2,113		1,390
Decreases relating to settlements	2,589		—		332
Balance at end of year	$	13,297	$	15,553	$	13,582