INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of domestic and foreign components of the Company's income (loss) before provision for income taxes

	Year Ended December 31,
	2015		2014		2013
Domestic*	$	859,039	$	711,917	$	596,899
Foreign*	32,509		33,871		(33,005)

Income before provision for income taxes	$	891,548	$	745,788	$	563,894

*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $29.2 million, $34.9 million and $25.9 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Components of the provision for income taxes

	Year Ended December 31,
	2015		2014		2013
Current:
Federal	$	548,018	$	228,348	$	191,596
State	88,671		36,633		36,662
Foreign	10,634		7,467		4,052

	647,323		272,448		232,310

Deferred:
Federal	(255,422)		(8,473)		(7,441)
State	(40,446)		(442)		(1,443)
Foreign	(5,420)		3,476		(9,694)

	(301,288)		(5,439)		(18,578)

Valuation allowance	(1,220)		(4,406)		11,501

	$	344,815	$	262,603	$	225,233

Schedule of reconciliation of income taxes computed at statutory federal rate to total income taxes

	Year Ended December 31,
	2015		2014		2013
U.S. Federal tax expense at statutory rates	$	312,042	$	261,025	$	197,363
State income taxes, net of federal tax benefit	31,046		23,859		22,640
Permanent differences	8,488		4,816		936
Domestic production deduction	-		(20,607)		(16,039)
Other	(127)		(1,267)		266
Foreign rate differential	(5,414)		(817)		8,566
Valuation allowance	(1,220)		(4,406)		11,501

	$	344,815	$	262,603	$	225,233

Components of the Company's deferred tax assets (liabilities)

	2015		2014
Deferred Tax Assets:
Reserve for sales returns	$	242	$	289
Reserve for doubtful accounts	18		36
Reserve for inventory obsolescence	1,126		3,030
Reserve for marketing development fund	10,118		9,118
Capitalization of inventory costs	1,927		2,527
State franchise tax - current	15,143		12,358
Accrued compensation	1,584		-
Accrued other liabilities	1,565		3,503
Deferred revenue	152,777		47,319
Stock-based compensation	24,488		25,268
Securities impairment	289		288
Foreign net operating loss carryforward	26,624		17,256
Prepaid supplies	6,065		4,195
Distribution rights	120,798		-
Termination payments	81,896		-
Capital loss carryforward	370		-
Gain on intercompany transfer	7,809		8,347

Total gross deferred tax assets	$	452,839	$	133,534


Deferred Tax Liabilities:
Amortization of trademarks	$	(12,078)	$	(11,923)
Intangibles	(134,021)		-
State franchise tax - deferred	(18,359)		(4,198)
Other deferred tax liabilities	(2,337)		(327)
Depreciation	(7,543)		(5,022)

Total gross deferred tax liabilities	(174,338)		(21,470)


Valuation Allowance	(17,191)		(17,683)


Net deferred tax assets	$	261,310	$	94,381

Schedule of roll-forward of the Company's total gross unrecognized tax benefits, not including interest and penalties

	Gross Unrealized Tax Benefits
Balance at January 1, 2013	$	926
Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	9
Decreases for tax positions related to prior years	-

Balance at December 31, 2013	$	935

Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	-
Decreases for tax positions related to prior years	-

Balance at December 31, 2014	$	935

Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	-
Decreases for tax positions related to prior years	(464		)

Balance at December 31, 2015	$	471