INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income (Loss) Before Income Taxes

Income before income taxes consisted of the following:


	Years Ended December 31,
Dollars in thousands	2022		2021		2020
United States operations	$	92,642	$	91,150	$	15,082
Foreign operations	121,252		123,527		78,438
Total	$	213,894	$	214,677	$	93,520

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,
	2022		2021		2020
Federal statutory rate	21.0	%	21.0	%	21.0	%
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal tax benefit	0.1	%	1.9	%	1.2	%
Foreign operations	(3.9)	%	(4.0)	%	(7.9)	%
Excess tax benefits from stock compensation	(2.4)	%	(1.2)	%	(1.0)	%
Intercompany profit in inventory	0.3	%	(0.2)	%	1.2	%
Nondeductible facilitative costs	0.2	%	0.3	%	1.1	%
Contingent Consideration	(2.0)	%	(0.2)	%	0.2	%
Research and development credit	(1.4)	%	(1.2)	%	(1.6)	%
Return to provision	(0.5)	%	(0.7)	%	(2.3)	%
Global intangible low-taxed income ("GILTI")	2.8	%	0.7	%	2.5	%
Nondeductible executive compensation	1.8	%	0.9	%	2.4	%
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	%
Other	(0.4)	%	—	%	0.5	%
Effective tax rate	15.6	%	21.2	%	(43.2)	%

Schedule of Provision for Income Taxes

The provision for income taxes consisted of the following:


	Years Ended December 31,
Dollars in thousands	2022		2021		2020
Current:
Federal	$	24,201	$	31,938	$	6,184
State	3,835		11,377		5,029
Foreign	9,893		5,042		12,553
Total current	$	37,929	$	48,357	$	23,766
Deferred:
Federal	(11,591)		(12,830)		(5,079)
State	(2,316)		(3,688)		(1,760)
Foreign	9,322		13,763		(57,299)
Total deferred	$	(4,585)	$	(2,755)	$	(64,138)
Provision for income taxes	$	33,344	$	45,602	$	(40,372)

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	2022		2021
Assets:
Doubtful accounts	$	2,261	$	2,029
Inventory related items	31,950		31,841
Tax credits	13,084		13,319
Accrued vacation	2,175		3,042
Accrued bonus	4,944		7,415
Stock compensation	10,175		13,955
Deferred revenue	2,130		1,742
Net operating loss carryforwards	30,707		26,198
Capitalization of research and development expenses	51,542		36,770
Unrealized foreign exchange gain	6,228		12,849
Charitable contributions carryforward	180		206

Leases and Other	39,788		41,371
Total deferred tax assets	195,164		190,737
Less valuation allowance	(9,651)		(9,767)
Deferred tax assets after valuation allowance	$	185,513	$	180,970
Liabilities:
Intangible and fixed assets	(166,891)		(152,150)
Unrealized foreign exchange loss	(12,991)		—
Leases and Other	(22,975)		(17,658)
Total deferred tax liabilities	$	(202,857)	$	(169,808)

Total net deferred tax assets (liabilities)	$	(17,344)	$	11,162

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	2022		2021		2020
	(In thousands)
Balance, beginning of year	$	676	$	702	$	676
Gross increases:
Current year tax positions	37		—		—
Prior years' tax positions	—		—		26
Other	—		(26)		—
Balance, end of year	$	713	$	676	$	702

Summary of Valuation Allowance

The valuation allowance at December 31, 2022 and 2021 primarily remained unchanged from respective prior periods; decreasing by an immaterial amount in both periods.


	Balance at Beginning of Period	Charged to Costs and Expenses	Other	Deductions	Balance at End of Period
Description
Dollars in thousands
Year ended December 31, 2022
Deferred tax assets valuation allowance	15,258	(515)		(71)	14,672
Year ended December 31, 2021
Deferred tax assets valuation allowance	13,825	1,444	89	(100)	15,258
Year ended December 31, 2020
Deferred tax assets valuation allowance	12,069	1,617	—	139	13,825