Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Components of Income Tax Provision (Benefit)

The components of the provision for income taxes are as follows:


	For the Year Ended December 31,
(in thousands)	2024		2023		2022
Current:
Federal	$	56,879	$	34,600	$	31,683
State	17,907		5,602		7,141
Foreign	2,300		2,002		1,708
	77,086		42,204		40,532
Deferred:
Federal	(7,407)		(1,936)		(4,003)
State	(2,618)		(338)		(1,022)
Foreign	(813)		(686)		(855)
	(10,838)		(2,960)		(5,880)
Provision for income taxes	$	66,248	$	39,244	$	34,652

Reconciliation of Income Taxes at Statutory Tax Rate to Company's Effective Tax Rate

The following is a reconciliation of income taxes at the statutory tax rate to the Company's effective tax rate:


	For the Year Ended December 31,
	2024		2023		2022
Federal taxes at statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal tax benefit	2.4		2.1		2.5
Uncertain tax positions	2.9		0.2		0.3
Research and development tax credit	(0.5)		(0.7)		(0.7)
Federal permanent items	—		0.3		(0.2)
Effect of foreign operations	0.1		0.3		—
Other	—		0.1		(0.7)
Effective tax rate	25.9	%	23.3	%	22.2	%

Change in Unrecognized Tax Benefits

The following table summarizes the change in unrecognized tax benefits for the three years ended December 31:


	For the Year Ended December 31,
(in thousands)	2024		2023		2022
Balance at beginning of year	$	4,539	$	3,856	$	1,204
Reductions due to lapses in statutes of limitations	(174)		(716)		(139)
Reductions due to tax positions settled	(180)		—		—
Additions related to positions taken during a prior period	—		—		2,136
Reductions due to reversals of prior year positions	(1,125)		—		—
Additions based on tax positions taken during the current period	7,253		1,399		655
Balance at end of year	10,313		4,539		3,856

Reconciliation of Deferred Tax Assets and Liabilities

Deferred income taxes result from timing differences in the recognition of revenue and expense between tax and financial statement purposes. The sources of temporary differences are as follows:


	December 31,
(in thousands)	2024		2023
Assets:
Inventories	$	15,111	$	17,829
Accounts receivable	24,723		20,472
Operating lease liability	31,850		26,261
Accrued expenses	10,932		7,002
Capitalized research and development expenses	16,840		12,263
Net operating losses	295		289
Foreign tax credits	469		469
State tax credits	427		379
Capital loss carryforward	474		478
Total deferred tax assets	101,121		85,442
Valuation allowance	(1,429)		(1,354)
Net deferred tax assets	99,692		84,088
Liabilities:
Depreciation	12,938		16,481
Goodwill and intangible assets	52,564		49,798
Operating lease right of use asset	30,146		25,142
Other	1,958		1,592
Gross deferred tax liabilities	97,606		93,013
Net deferred tax assets (liabilities)	$	2,086	$	(8,925)