INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Income (Loss) Before Income Taxes

Income (Loss) before income taxes consisted of the following:


	Years Ended December 31,
Dollars in thousands	2021		2020		2019
United States operations	$	91,150	$	15,082	$	(38,359)
Foreign operations	123,527		78,438		98,463
Total	$	214,677	$	93,520	$	60,104

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:


	Years Ended December 31,
	2021		2020		2019
Federal statutory rate	21.0	%	21.0	%	21.0	%
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal tax benefit	1.9	%	1.2	%	1.0	%
Foreign operations	(4.0)	%	(7.9)	%	(20.0)	%
Excess tax benefits from stock compensation	(1.2)	%	(1.0)	%	(5.6)	%
Nondeductible meals and entertainment	0.1	%	0.4	%	1.5	%
Intercompany profit in inventory	(0.2)	%	1.2	%	1.2	%
Nondeductible facilitative costs	0.2	%	1.4	%	0.8	%
Research and development credit	(1.2)	%	(1.6)	%	(2.9)	%
Return to provision	(0.7)	%	(2.3)	%	1.7	%
Global intangible low-taxed income ("GILTI")	0.7	%	2.5	%	7.6	%
Nondeductible executive compensation	0.9	%	2.4	%	3.0	%
Fair market value step up on intra-entity transfer of intellectual property	—	%	(63.3)	%	—	%
Gain from sale of business - book to tax differences	3.9	%	2.8	%	—	%
Swiss tax holiday	—	%	—	%	(15.7)	%
Nondeductible R&D expense	—	%	—	%	22.7	%
Other	(0.2)	%	—	%	0.2	%
Effective tax rate	21.2	%	(43.2)	%	16.5	%

Schedule of Provision for Income Taxes

The provision for income taxes consisted of the following:


	Years Ended December 31,
Dollars in thousands	2021		2020		2019
Current:
Federal	$	31,938	$	6,184	$	14,597
State	11,377		5,029		3,447
Foreign	5,042		12,553		10,905
Total current	$	48,357	$	23,766	$	28,949
Deferred:
Federal	(12,830)		(5,079)		(10,889)
State	(3,688)		(1,760)		(666)
Foreign	13,763		(57,299)		(7,491)
Total deferred	$	(2,755)	$	(64,138)	$	(19,046)
Provision for income taxes	$	45,602	$	(40,372)	$	9,903

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of significant temporary differences that give rise to deferred tax assets and liabilities, shown before jurisdictional netting, are presented below:


	December 31,
Dollars in thousands	2021		2020
Assets:
Doubtful accounts	$	2,029	$	2,207
Inventory related items	31,841		47,034
Tax credits	13,319		18,319
Accrued vacation	3,042		3,403
Accrued bonus	7,415		4,883
Stock compensation	13,955		6,160
Deferred revenue	1,742		1,665
Net operating loss carryforwards	26,198		29,335
Capitalization of research and development expenses	36,770		13,044
Unrealized foreign exchange loss	12,849		23,798
Charitable contributions carryforward	206		203

Leases and Other	41,371		23,205
Total deferred tax assets	190,737		173,256
Less valuation allowance	(9,767)		(9,897)
Deferred tax assets after valuation allowance	$	180,970	$	163,359
Liabilities:
Intangible and fixed assets	(152,150)		(90,274)
Leases and Other	(17,658)		(15,585)
Total deferred tax liabilities	$	(169,808)	$	(105,859)

Total net deferred tax assets (liabilities)	$	11,162	$	57,500

Schedule of Uncertain Tax Benefits Reconciliation

A reconciliation of the beginning and ending amount of uncertain tax benefits is as follows:


	Years Ended December 31,
Dollars in thousands	2021		2020		2019
	(In thousands)
Balance, beginning of year	$	702	$	676	$	676
Gross increases:
Current year tax positions	—		—		53
Prior years' tax positions	—		26		—
Other	(26)		—		(53)
Balance, end of year	$	676	$	702	$	676