Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

The Company's income before income taxes and income tax expense (benefit), each by tax jurisdiction, consists of the following (dollars in thousands):


	Year ended December 31,
	2023		2022		2021
Income before income taxes:
Domestic	$	20,660	$	56,750	$	28,380
Foreign	29,930		30,920		40,730
Total income before income taxes	$	50,590	$	87,670	$	69,110
Current income tax expense:
Federal	$	2,740	$	13,300	$	940
State and local	670		3,470		530
Foreign	8,690		6,170		8,840
Total current income tax expense	12,100		22,940		10,310
Deferred income tax expense (benefit):
Federal	1,800		(1,780)		5,450
State and local	150		50		670
Foreign	(3,820)		290		(4,630)
Total deferred income tax expense (benefit)	(1,870)		(1,440)		1,490
Income tax expense	$	10,230	$	21,500	$	11,800

Schedule of Deferred Tax Assets and Liabilities

The components of deferred taxes are as follows (dollars in thousands):


	December 31, 2023		December 31, 2022
Deferred tax assets:
Accounts receivable	$	1,770	$	1,290
Inventories	7,260		5,640

Accrued liabilities and other long-term liabilities	16,780		14,580
Operating lease liability	10,690		12,670
Research and experimentation costs	6,530		4,130
Tax loss and credit carryforwards	28,880		27,310
Other	(470)		110
Gross deferred tax asset	71,440		65,730
Valuation allowances	(15,960)		(17,180)
Net deferred tax asset	55,480		48,550
Deferred tax liabilities:
Property and equipment	(30,300)		(25,100)
Right of use asset	(10,150)		(12,170)
Goodwill and other intangible assets	(27,580)		(22,050)
Investment in foreign affiliates, including withholding tax	(510)		(770)

Gross deferred tax liability	(68,540)		(60,090)
Net deferred tax liability	$	(13,060)	$	(11,540)

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of income tax expense computed at the U.S. federal statutory rate to income tax expense allocated to income before income taxes (dollars in thousands):


	Year ended December 31,
	2023			2022			2021
U.S. federal statutory rate	21		%	21		%	21		%
Tax at U.S. federal statutory rate	$	10,610		$	18,380		$	14,550
State and local taxes, net of federal tax benefit	710			2,790			960
Differences in statutory foreign tax rates	2,980			1,150			(1,690)
Change in recognized tax benefits	(130)			(600)			(550)





Tax credits and incentives	(1,570)			(1,260)			(5,060)

Net change in valuation allowance	(2,700)			340			2,100
Nondeductible compensation	560			990			2,280


Other, net	(230)			(290)			(790)
Income tax expense	$	10,230		$	21,500		$	11,800

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in the UTBs for the years ended December 31, 2023 and 2022 is as follows (dollars in thousands):


	Unrecognized Tax Benefits
Balance at December 31, 2021	$	1,250
Tax positions related to current year:
Additions	140
Tax positions related to prior years:
Additions	—
Reductions	(50)
Settlements	—
Lapses in the statutes of limitations	(230)
Balance at December 31, 2022	$	1,110
Tax positions related to current year:
Additions	140
Tax positions related to prior years:
Additions	—
Reductions	(20)
Settlements	—
Lapses in the statutes of limitations	(400)
Balance at December 31, 2023	$	830