Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Tax Expense (Benefit)

The provision for income tax expense consisted of the following:

	(In thousands) Years Ended December 31,
	2023		2022		2021
Current tax expense
Federal	$	8,796	$	12,474	$	31,112
State	$	1,095	$	1,023	$	2,829
Foreign	390		428		59
	10,281		13,925		34,000
Deferred tax (benefit) expense
Federal	(7,857)		(8,624)		107
State	(1,973)		(768)		841
	(9,830)		(9,392)		948
Income tax expense	$	451	$	4,533	$	34,948

Schedule of Deferred Tax Assets (Liabilities)

Deferred tax (liabilities) assets were comprised of the following:

	(In thousands) December 31,
	2023		2022
Deferred tax assets:
Accrued expenses	$	889	$	627
Allowance for credit losses	501		152
Contract overrun reserves	1,323		952
Deferred compensation	526		234
Deferred revenue	—		943
Employment-related accruals	5,022		3,932
Environmental reserves	501		501
Federal tax credit carryforwards	133		133
Inventory reserves	4,628		3,572
Operating lease liabilities	7,318		8,672
Pension obligation	553		28
Federal and state net operating loss carryforwards	2,560		3,397
Research expenses	21,822		10,620
State tax credit carryforwards	7,582		6,974
Stock-based compensation	1,852		2,420
Other	1,798		1,525
Total gross deferred tax assets	57,008		44,682
Valuation allowance	(7,464)		(7,548)
Total gross deferred tax assets, net of valuation allowance	49,544		37,134
Deferred tax liabilities:
Deferred revenue	(2,794)		—
Depreciation	(11,622)		(11,286)
Goodwill	(10,973)		(8,630)
Intangibles	(16,265)		(18,310)
Interest rate hedge	(3,659)		(3,359)
Operating lease right-of-use assets	(7,087)		(8,346)
Prepaid insurance	(770)		(609)
Other	(499)		(547)
Total gross deferred tax liabilities	(53,669)		(51,087)
Net deferred tax liabilities	$	(4,125)	$	(13,953)

Schedule of Principle Reasons for Variation Between Expected and Effective Tax Rate

The principal reasons for the variation between the statutory and effective tax rates were as follows:

	Years Ended December 31,
	2023	2022	2021
Statutory federal income tax rate	21.0%	21.0%	21.0%
State income taxes (net of federal benefit)	3.2	4.0	3.1
Tax impact of foreign operations	2.8	1.0	—
Foreign derived intangible income deduction	(3.2)	(0.9)	—
Stock-based compensation expense	(1.5)	(0.6)	(0.5)
Research and development tax credits	(36.3)	(14.8)	(3.0)
Other tax credits	(0.3)	(0.1)	—
Changes in valuation allowance	(0.5)	(0.5)	(1.0)
Non-deductible book compensation expenses	14.8	4.4	0.7
Changes in deferred tax assets	0.8	(0.2)	—
Changes in tax reserves	1.0	—	0.2
Other	1.0	0.3	—
Effective income tax rate	2.8%	13.6%	20.5%

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

	(In thousands) Years Ended December 31,
	2023		2022		2021
Balance at January 1,	$	4,944	$	4,435	$	4,069
Additions for tax positions related to the current year	646		1,177		562
Additions for tax positions related to prior years	220		15		180
Reductions for tax positions related to prior years	(600)		(13)		—
Reductions for lapse of statute of limitations	(717)		(670)		(376)
Balance at December 31,	$	4,493	$	4,944	$	4,435