Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes

For financial reporting purposes, income before income taxes includes the following components:

	Years Ended December 31,
(in millions)	2023		2022		2021
United States	$	36.4	$	8.5	$	12.8
Foreign	6.4		(4.1)		1.0
Income before income taxes	$	42.8	$	4.4	$	13.8

Provision (Benefit) for Income Tax

The provision (benefit) for income taxes consists of the following:

	Years Ended December 31,
(in millions)	2023		2022		2021
Current provision (benefit):
Federal	$	8.2	$	17.4	$	(0.4)
State	4.5		2.4		(0.7)
Foreign	2.8		2.3		0.3
Total current provision (benefit)	15.5		22.1		(0.8)
Deferred benefit:
Federal	(3.6)		(18.3)		(0.1)
State	(2.8)		(1.0)		1.1
Foreign	—		2.2		(2.3)
Total deferred benefit	(6.4)		(17.1)		(1.3)
Total provision (benefit):
Federal	4.6		(0.9)		(0.5)
State	1.7		1.4		0.4
Foreign	2.8		4.5		(2.0)
Total income tax provision (benefit)	$	9.1	$	5.0	$	(2.1)

Reconciliation of Provision for Income Taxes at Statutory Federal Income Tax Rate

A reconciliation of the provision (benefit) for income taxes at the statutory federal income tax rate to the amount provided is as follows:

	Years Ended December 31,
(in millions)	2023		2022		2021
Tax expense at the statutory federal income tax rate	$	8.9	$	0.9	$	2.9
State income tax, net of federal income tax	0.4		0.6		1.3
Research and development tax credits	(2.8)		(3.3)		(4.1)
Impact of uncertain tax positions	1.0		1.2		1.8
Impact of uncertain tax positions - liquidation of subsidiary	—		—		(0.7)
Change in foreign subsidiary net operating loss carryforward	—		—		4.4
Valuation allowance impact	0.3		6.0		(8.1)
Changes in tax rates	0.8		0.2		0.7
Share-based compensation	0.6		0.4		0.4
Foreign-derived intangible income deduction	(0.7)		(0.9)		—
Foreign tax credit	(0.5)		(0.2)		—
Other items	1.1		0.1		(0.7)
Total income tax provision (benefit)	$	9.1	$	5.0	$	(2.1)

Significant Components of Company's Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities are as follows:

	December 31,
(in millions)	2023		2022
Deferred tax assets:
Amortization of research and experimental expenditures	$	24.7	$	18.4
Inventory reserves	5.8		4.7
Warranty reserves	3.7		2.2
Credit loss reserves	0.8		0.6
State tax loss carryforwards	11.5		11.6
Accrued vacation	1.2		1.6
Deferred compensation	1.1		1.1
Share-based compensation	2.6		4.4
Goodwill	1.7		1.8
Foreign net operating loss	7.9		7.2
Lease obligation	1.3		1.8
Employee & insurance accruals	1.0		1.0
Domestic credit carryforwards	1.5		1.5
Deferred revenue	2.2		1.7
Valuation allowances	(12.5)		(11.9)
Other	—		0.9
Total deferred tax assets	54.5		48.6
Deferred tax liabilities:
Property and equipment	14.0		13.6
Intangibles	1.8		2.7
Right-of-use assets	1.3		1.8
Post-retirement benefits	0.5		0.5
Other	0.5		—
Total deferred tax liabilities	18.1		18.6
Total net deferred assets	$	36.4	$	30.0

Rollforward of Deferred Tax Assets Valuation Allowance

The following table represents a rollforward of the deferred tax asset valuation allowance for the years ended December 31, 2023, 2022 and 2021:

	Years Ended December 31,
(in millions)	2023		2022		2021
Allowance balance, beginning of year	$	11.9	$	5.9	$	14.0
Provision	1.8		6.0		0.6
Reversals	(1.6)		—		(8.1)
Other	0.4		—		(0.6)
Allowance balance, end of year	$	12.5	$	11.9	$	5.9

Reconciliation of Unrecognized Tax Benefit

A reconciliation of the beginning and ending unrecognized tax benefits excluding interest and penalties is as follows:

	Years Ended December 31,
(in millions)	2023		2022		2021
Balance, beginning of year	$	12.0	$	10.8	$	9.7
Additions for tax positions taken in current year	0.9		1.2		1.0
Additions for tax positions taken in prior period	0.1		—		0.8
Decreases related to sustained tax positions	—		—		(0.7)
Balance, end of year	$	13.0	$	12.0	$	10.8