INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income Statement Components

Earnings before income taxes were as follows:

	December 31,
(in thousands)	2024		2023		2022
Income before income taxes:
Domestic	$	66,449	$	121,065	$	86,680
Foreign	83,179		54,055		47,630
	$	149,628	$	175,120	$	134,310

The components of income tax expense (benefit) were as follows:

	December 31,
(in thousands)	2024		2023		2022
Current:
Domestic	$	13,080	$	24,168	$	19,197
Foreign	19,968		11,356		11,848
State	4,257		7,688		3,674
	37,305		43,212		34,719
Deferred:
Domestic	(1,895)		(4,451)		(2,246)
Foreign	(1,225)		353		(51)
State	(487)		(155)		(40)
	(3,607)		(4,253)		(2,337)
Total income taxes	$	33,698	$	38,959	$	32,382

A reconciliation of the income tax at the Company’s U.S. statutory federal income tax rate to the provision for income tax follows. Some prior year components have been reclassified to conform to the current year presentation.  

	December 31,
(in thousands)	2024			2023			2022
Income tax expense at statutory rates	$	31,422		$	36,775		$	28,205
Increase (reduction) from:
Jurisdictional rate differences	4,832			2,766			1,989
Executive compensation limitations	1,122			183			481
Valuation allowance	(2,432)			(789)			(316)
Stock based compensation	209			(24)			122
U.S. state taxes	2,876			6,076			2,632
Foreign tax (credit) / expense	(1,498)			(371)			267
R&D credit (net)	(3,529)			(3,618)			(1585)
Other credits	(490)			(628)			—
GILTI	871			109			500
FDII	(187)			(731)			(192)
Previously unrecognized tax (benefit) / expense	136			170			51
Other (net)	366			(959)			228
Provision for income taxes	$	33,698		$	38,959		$	32,382
Effective tax rate	22.5		%	22.2		%	24.1		%

Deferred Income Tax Assets and Liabilities

The components of the Company’s deferred income tax assets and liabilities were as follows:

	December 31,
(in thousands)	2024		2023
Deferred income tax assets:
Inventory basis difference	$	4,579	$	3,580
Accounts receivable reserve	620		798
Rental equipment and Property, plant and equipment	—		—
Stock based compensation	679		944
Pension liability	3,010		2,922
Employee benefit accrual	2,384		3,150
Product liability and warranty reserves	2,598		2,415
Foreign net operating loss	—		2,736
Lease liability	3,662		4,052
Capitalized R&D costs	13,676		10,335
Other	808		447
Total deferred income tax assets	$	32,016	$	31,379
Less: Valuation allowance	—		(2,512)
Net deferred income tax assets	$	32,016	$	28,867
Deferred income tax liabilities:
Inventory basis differences	$	(78)	$	(75)
Rental equipment and Property, plant and equipment	(14,960)		(17,074)
Lease asset	(3,545)		(3,941)
Intangible assets	(21,962)		(20,878)
Expenses not currently deductible for book purposes	(1,351)		(1,624)
Total deferred income tax liabilities	$	(41,896)	$	(43,592)
Net deferred income taxes	$	(9,880)	$	(14,725)

As of December 31, 2024, the Company had no foreign or domestic net operating loss carry-forwards.

The Company had no valuation allowances on deferred tax assets as of December 31, 2024.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows. The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months.

 

Unrecognized Tax Benefits
	December 31,
(in thousands)	2024		2023
Balance as of beginning of year	$	490	$	321
Increases for tax positions related to the current year	218		252
Decreases due to lapse of statute of limitations	(82)		(83)
Balance as of end of year	$	626	$	490

The Company has adopted the policy to include interest and penalty expense related to income taxes as interest and other expense, respectively. As of December 31, 2024, no interest or penalties have been accrued. With few exceptions, the Company’s open tax years for its federal and state income tax returns are for the tax years ended 2019 through 2024, and for tax years ended 2018 through 2024 for its foreign income tax returns.

The Company currently intends to permanently reinvest its earnings in certain foreign subsidiaries. No U.S. corporate income taxes or foreign withholding taxes should be imposed on future distributions of the earnings not permanently reinvested. If the amounts asserted as permanent reinvestment were distributed, the Company would be subject to approximately $5.4 million in withholding taxes.