INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

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

	Year Ended December 31,
	2022		2021		2020
Domestic*	$	1,327,459	$	1,431,797	$	1,374,402
Foreign*		244,505		369,622		251,755
Income before provision for income taxes	$	1,571,964	$	1,801,419	$	1,626,157

*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $85.0 million, $61.1 million and $54.2 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Schedule of components of the provision for income taxes

	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	247,482	$	273,115	$	259,073
State		47,255		44,990		43,704
Foreign		37,421		89,410		70,658
		332,158		407,515		373,435
Deferred:
Federal		19,111		14,750		11,401
State		258		4,689		4,709
Foreign		26,084		5,092		(167,595)
		45,453		24,531		(151,485)
Valuation allowance		2,729		(8,102)		(5,387)
	$	380,340	$	423,944	$	216,563

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

	Year Ended December 31,
	2022		2021		2020
U.S. Federal tax expense at statutory rates	$	330,113	$	378,298	$	341,493
State income taxes, net of federal tax benefit		35,848		38,894		37,478
Permanent differences		(5,450)		(4,168)		(1,064)
Stock based compensation		3,571		2,790		1,097
Intra-company transfer benefit		—		—		(165,075)
Other		1,371		(649)		(7,388)
Foreign rate differential		12,158		16,881		15,409
Valuation allowance		2,729		(8,102)		(5,387)
	$	380,340	$	423,944	$	216,563

Schedule of components of the deferred tax assets (liabilities)

	2022		2021
Deferred Tax Assets:
Reserve for sales returns	$	2,262	$	889
Reserve for inventory obsolescence		4,651		3,643
Reserve for marketing development fund		7,487		8,951
Capitalization of inventory costs		6,537		2,533
State franchise tax - current		2,339		2,493
Accrued compensation		10,499		2,854
Accrued other liabilities		1,820		4,634
Deferred revenue		63,196		68,557
Stock-based compensation		25,526		24,635
Foreign net operating loss carryforward		19,896		14,507
Prepaid supplies		7,901		6,317
Termination payments		52,466		58,042
Operating lease liabilities		5,739		4,711
Intangibles		33,603		72,666
Impairment-trademarks and others		2,567		2,047
Other deferred tax assets		33,209		33,013
Total gross deferred tax assets	$	279,698	$	310,492
Deferred Tax Liabilities:
Amortization of trademarks	$	(39,237)	$	(41,517)
State franchise tax - deferred		(5,503)		(5,505)
Operating lease ROU assets		(5,739)		(4,711)
Other deferred tax liabilities		(5)		(618)
Depreciation		(22,433)		(5,907)
Total gross deferred tax liabilities		(72,917)		(58,258)
Valuation Allowance		(29,742)		(27,013)
Net deferred tax assets	$	177,039	$	225,221

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

	Gross Unrecognized Tax
	Benefits
Balance at December 31, 2019	$	2,993
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		(2,251)
Balance at December 31, 2020	$	742
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		(742)
Balance at December 31, 2021	$	—
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior year		3,020
Decreases for tax positions related to prior years		—
Balance at December 31, 2022	$	3,020