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


	Year Ended December 31,
	2025			2024		2023
Current:
Federal	$	86,408		$	97,251	$	120,122
State		18,784			14,462		26,444
Foreign		4,910			5,384		8,159
Total current provision for income taxes		110,102			117,097		154,725

Deferred:
Federal		15,966			9,199		9,929
State		1,179			6,070		807
Foreign		(115	)		470		(377	)
Total deferred provision for income taxes		17,030			15,739		10,359
Provision for income taxes	$	127,132		$	132,836	$	165,084

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The provision for income taxes results in effective rates that differ from the statutory rates. A reconciliation of our 2025 income tax expense computed at the statutory federal income tax rate to the total tax expense computed at the effective tax rate is as follows (amounts in thousands):


	Year Ended December 31, 2025
	Amount			Percent
U.S. federal statutory tax rate	$	112,021			21.0	%
State and local income taxes, net of federal income tax effect (1)		16,114			3.0
Foreign tax effects		1,605			0.3
Effect of cross-border tax laws		(1,018	)	(0.2)
Tax credits		(79	)		0.0
Nontaxable or nondeductible items		2,078			0.4
Changes in unrecognized tax benefits		991			0.2
Other adjustments
Excess tax benefits on share-based payments		(4,580	)	(0.9)
Total effective tax rate	$	127,132			23.8	%

(1)

State taxes in California, Florida and Arizona made up the majority of the tax effect in this category.

A reconciliation of the U.S. federal statutory tax rate to our 2024 and 2023 effective tax rate on Income before income taxes and equity in earnings is as follows:


	Year Ended December 31,
	2024			2023
Federal statutory rate		21.00	%		21.00	%
Change in valuation allowance		0.20			0.05
Stock-based compensation		(1.55	)		(0.97	)
Other, primarily state income tax rate		3.78			3.91
Total effective tax rate		23.43	%		23.99	%

Components of deferred tax assets and liabilities

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


	December 31,
	2025			2024
Deferred tax assets:
Product inventories	$	14,436		$	13,625
Trade discounts on purchases		2,654			1,044
Accrued expenses		658			824
Leases		77,249			74,108
Share-based compensation		11,538			10,844
Uncertain tax positions		4,396			4,133
Net operating losses		3,077			2,336
Other		5,797			4,843
Total non-current		119,805			111,757
Less: Valuation allowance		(2,859	)		(2,255	)
Component reclassified for net presentation		(115,902	)		(108,583	)
Total non-current, net		1,044			919

Total deferred tax assets		1,044			919

Deferred tax liabilities:
Prepaid expenses		11,324			9,380
Leases		76,988			73,583
Intangible assets, primarily goodwill		84,572			73,334
Depreciation		36,372			28,541
Interest rate swaps		2,279			5,153
Total non-current		211,535			189,991
Component reclassified for net presentation		(115,902	)		(108,583	)
Total non-current, net		95,633			81,408

Total deferred tax liabilities		95,633			81,408

Net deferred tax liability	$	94,589		$	80,489