INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

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

	Year Ended December 31,
	2017		2016		2015
Domestic*	$	1,062,713	$	1,029,763	$	859,039
Foreign*	138,910		49,922		32,509

Income before provision for income taxes	$	1,201,623	$	1,079,685	$	891,548

*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $42.5 million, $25.6 million and $29.4 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Components of the provision for income taxes

	Year Ended December 31,
	2017		2016		2015
Current:
Federal	$	243,127	$	212,283	$	548,018
State	43,252		35,756		88,671
Foreign	27,522		17,171		10,634

	313,901		265,210		647,323

Deferred:
Federal	61,797		87,360		(255,422)
State	3,062		15,254		(40,446)
Foreign	(4,579)		(9,709)		(5,420)

	60,280		92,905		(301,288)

Valuation allowance	6,764		8,885		(1,220)

	$	380,945	$	367,000	$	344,815

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

	Year Ended December 31,
	2017		2016		2015
U.S. Federal tax expense at statutory rates	$	420,568	$	377,599	$	312,042
State income taxes, net of federal tax benefit	27,569		33,148		31,046
Permanent differences	10,356		954		5,285
Stock based compensation	(79,687)		(13,654)		3,203
Domestic production deduction	(22,229)		(21,447)		-
Deferred tax asset reduction (Tax Reform Act)	39,763		-		-
Other	3,736		(8,765)		(127)
Foreign rate differential	(25,895)		(9,720)		(5,414)
Valuation allowance	6,764		8,885		(1,220)

	$	380,945	$	367,000	$	344,815

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

	2017		2016
Deferred Tax Assets:
Reserve for sales returns	$	159	$	149
Reserve for inventory obsolescence	522		524
Reserve for marketing development fund	6,360		8,065
Capitalization of inventory costs	1,598		2,714
State franchise tax - current	2,050		18,016
Accrued compensation	1,473		1,212
Accrued other liabilities	3,917		1,817
Deferred revenue	93,321		145,319
Stock-based compensation	21,119		31,873
Foreign net operating loss carryforward	28,965		29,894
Prepaid supplies	7,273		8,022
Termination payments	70,637		98,244
Elimination Company Profit	-		2,843
Gain on intercompany transfer	6,793		7,274
Other deferred tax assets	3,449		376

Total gross deferred tax assets	$	247,636	$	356,342


Deferred Tax Liabilities:
Amortization of trademarks	$	(21,657)	$	(18,663)
Intangibles	(84,867)		(131,264)
State franchise tax - deferred	(7,617)		(12,946)
Other deferred tax liabilities	(62)		(1,101)
Depreciation	(8,260)		(6,736)

Total gross deferred tax liabilities	(122,463)		(170,710)


Valuation Allowance	(32,840)		(26,076)


Net deferred tax assets	$	92,333	$	159,556

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, 2015	$	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

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	(462)

Balance at December 31, 2016	$	9

Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	6,540
Decreases for tax positions related to prior years	(9)

Balance at December 31, 2017	$	6,540