Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income before income taxes and equity earnings (losses)

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

	Year Ended December 31,
	2018		2017		2016
United States	$	278,311	$	259,436	$	234,646
Foreign	14,682		9,746		6,732
Total	$	292,993	$	269,182	$	241,378

Provision for income taxes

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

	Year Ended December 31,
	2018			2017			2016
Current:
Federal	$	39,504		$	71,329		$	77,000
State and other	14,609			11,289			12,182
Total current provision for income taxes	54,113			82,618			89,182
Deferred:
Federal	4,676			(6,643		)	4,079
State and other	(15		)	2,007			(330		)
Total deferred provision for income taxes	4,661			(4,636		)	3,749
Provision for income taxes	$	58,774		$	77,982		$	92,931

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 earnings is as follows:

	Year Ended December 31,
	2018		2017		2016
Federal statutory rate	21.00	%	35.00	%	35.00	%
Change in valuation allowance	(0.13	)	(0.06	)	0.10
Stock-based compensation	(5.23	)	(4.67	)	—
Re-measurement of net deferred tax liability	—		(4.46	)	—
Other, primarily state income tax rate	4.42		3.16		3.40
Total effective tax rate	20.06	%	28.97	%	38.50	%

Components of deferred tax assets and liabilities

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

	December 31,
	2018			2017
Deferred tax assets:
Product inventories	$	5,413		$	4,287
Accrued expenses	776			1,804
Leases	1,189			1,188
Share-based compensation	9,427			8,884
Uncertain tax positions	2,558			2,087
Net operating losses	5,058			5,441
Other	2,080			1,629
Total non-current	26,501			25,320
Less: Valuation allowance	(5,058		)	(5,440		)
Component reclassified for net presentation	(20,897		)	(19,071		)
Total non-current, net	546			809
Total deferred tax assets	546			809
Deferred tax liabilities:
Trade discounts on purchases	2,094			1,520
Prepaid expenses	1,804			1,857
Intangible assets, primarily goodwill	30,988			29,348
Depreciation	14,924			10,870
Interest rate swaps	486			61
Total non-current	50,296			43,656
Component reclassified for net presentation	(20,897		)	(19,071		)
Total non-current, net	29,399			24,585
Total deferred tax liabilities	29,399			24,585
Net deferred tax liability	$	28,853		$	23,776

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):

	2018		2017		2016
Balance at beginning of year	$	9,937	$	7,846	$	5,978
Increases for tax positions taken during a prior period	76		129		10
Increases for tax positions taken during the current period	3,809		3,260		2,819
Decreases resulting from the expiration of the statute of limitations	1,603		869		961
Decreases relating to settlements	40		429		—
Balance at end of year	$	12,179	$	9,937	$	7,846