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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Tax Rate A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows:

 

 

 

Percent of Income before
Income Taxes

 

 

 

2021

 

 

2020

 

 

2019

 

Statutory federal income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes - net of federal tax benefit

 

 

3.1

 

 

 

3.3

 

 

 

5.2

 

Foreign tax rate differential

 

 

1.3

 

 

 

0.3

 

 

 

 

Non-deductible expenses

 

 

0.4

 

 

 

0.7

 

 

 

1.0

 

Changes in unrecognized tax benefits

 

 

 

 

 

(0.8

)

 

 

0.4

 

Foreign tax incentives

 

 

 

 

 

 

 

 

(0.4

)

Other

 

 

(0.2

)

 

 

0.2

 

 

 

(0.2

)

Effective tax rate for the year

 

 

25.6

%

 

 

24.7

%

 

 

27.0

%

Income (Loss) from Continuing Operations Before Income Taxes

Income (loss) from continuing operations before income taxes was attributable to the following sources:

 

 

 

2021

 

 

2020

 

 

2019

 

United States

 

$

36,203

 

 

$

45,070

 

 

$

33,612

 

Foreign

 

 

8,890

 

 

 

3,792

 

 

 

(429

)

Totals

 

$

45,093

 

 

$

48,862

 

 

$

33,183

 

Income Tax Expense (Benefit) from Continuing Operations

Income tax expense (benefit) from continuing operations consisted of the following:

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

Federal

 

$

4,901

 

 

$

2,534

 

 

$

957

 

 

$

8,702

 

 

$

7,270

 

 

$

(447

)

Foreign

 

 

2,389

 

 

 

(53

)

 

 

1,390

 

 

 

(326

)

 

 

497

 

 

 

(538

)

State and local

 

 

1,439

 

 

 

345

 

 

 

1,014

 

 

 

356

 

 

 

2,123

 

 

 

63

 

 

 

$

8,729

 

 

$

2,826

 

 

$

3,361

 

 

$

8,732

 

 

$

9,890

 

 

$

(922

)

 

Significant Components of the Company's Deferred Taxes

Significant components of the Company’s deferred taxes as of December 31, 2021 and 2020 are as follows:

 

 

 

2021

 

 

2020

 

Deferred income tax assets

 

 

 

 

 

 

Compensation accruals

 

$

2,387

 

 

$

2,446

 

Inventory valuation

 

 

2,008

 

 

 

2,647

 

Allowance for uncollectible accounts

 

 

489

 

 

 

497

 

Non-deductible accruals

 

 

3,538

 

 

 

3,419

 

Operating lease liability

 

 

6,220

 

 

 

3,804

 

Finance lease liability

 

 

2,087

 

 

 

 

Non-deductible intangibles

 

 

1,473

 

 

 

1,669

 

State deferred taxes

 

 

176

 

 

 

451

 

Capital loss carryforwards

 

 

1,982

 

 

 

1,982

 

Net operating loss carryforwards

 

 

30

 

 

 

34

 

 

 

 

20,390

 

 

 

16,949

 

Valuation allowance

 

 

(1,982

)

 

 

(1,982

)

 

 

 

18,408

 

 

 

14,967

 

Deferred income tax liabilities

 

 

 

 

 

 

Property, plant and equipment

 

 

8,983

 

 

 

7,925

 

Tax-deductible goodwill

 

 

4,937

 

 

 

4,623

 

Right of use asset - operating leases

 

 

6,150

 

 

 

3,759

 

Finance lease assets

 

 

2,051

 

 

 

 

Other

 

 

1,622

 

 

 

1,534

 

 

 

 

23,743

 

 

 

17,841

 

Net deferred income tax liability

 

$

(5,335

)

 

$

(2,874

)

Activity Related to the Company's Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

 

 

 

2021

 

 

2020

 

 

2019

 

Balance at January 1

 

$

774

 

 

$

1,098

 

 

$

955

 

Increases related to previous year tax positions

 

 

 

 

 

59

 

 

 

143

 

Reductions due to lapse of applicable statute of limitations

 

 

 

 

 

(383

)

 

 

 

Balance at December 31

 

$

774

 

 

$

774

 

 

$

1,098