Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income (Loss) Before Provision for Income Taxes

The components of the Company’s income (loss) before provision for income taxes are as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
U.S.	$	136,498	$	34,344	$	(61,332)
Foreign	40,659		(39,296)		211
Income (loss) before provision for income taxes	$	177,157	$	(4,952)	$	(61,121)

Schedule of Components of Income Tax Expense (benefit)

The provision for income taxes charged to operations consists of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current expense (benefit):
Federal	$	26,592	$	12,826	$	(8)
State	5,678		1,630		(668)
Foreign	16,509		7,725		60
	48,779		22,181		(616)
Deferred expense (benefit):
Federal	942		(6,160)		(9,085)
State	(327)		(960)		(1,017)
Foreign	(9,477)		(24,445)		—
	(8,862)		(31,565)		(10,102)
Total income tax expense (benefit)	$	39,917	$	(9,384)	$	(10,718)

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Bad debts	$	164	$	234
Inventories	3,528		2,780
Accrued warranties	4,336		3,575
Accrued compensation	569		637
Net operating loss	2,181		1,014
Equity-based compensation	3,222		2,240
Lease liabilities	5,794		4,588
Premium on capped call	9,376		10,792
Interest expense carryforward	3,411		6,750
Capitalized research and development expenses	2,000		1,752
Other	4,580		2,435
Deferred tax assets	39,161		36,797
Valuation allowance	(2,360)		(1,449)
Deferred tax assets, net	36,801		35,348
Deferred tax liabilities:
Property, plant, and equipment	(2,825)		(1,592)
Intangible assets	(79,913)		(85,927)
ROU assets	(5,051)		(3,969)
Deferred tax liabilities	(87,789)		(91,488)
Deferred tax asset (liability), net	$	(50,988)	$	(56,140)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense computed at the federal statutory rate of 21% to actual income tax expense at the Company’s effective rate is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Income tax rate reconciliation
Income tax expense (benefit) at U.S. statutory rate	$	37,204	$	(1,040)	$	(12,835)
State income taxes	4,150		530		(1,545)
Officer’s compensation	518		740		435
Equity-based compensation	(932)		712		1,542
Contingent consideration	622		(947)		567
Tax credits	(407)		(421)		(620)
Non-U.S. income taxed at different rate than U.S. statutory rate	2,658		(4,274)		—
Non-U.S. indirect tax incentives	(5,035)		(4,183)		—
Foreign derived intangible income benefit	(403)		(1,668)		—
Transaction costs	—		1,628		950
Change in valuation allowance	911		(534)		14
Nondeductible expenses	299		10		69
Other	332		63		705
Total income tax expense (benefit)	$	39,917	$	(9,384)	$	(10,718)