INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense consists of the following:

	2021		2020		2019
Current:
Federal	$	25,019	$	19,249	$	17,757
Foreign	7,553		3,399		1,609
State	3,664		3,590		818
Deferred:
Federal	(3,709)		(3,017)		(3,707)
Foreign	(3,038)		167		67
State	(360)		(1,594)		263
Total income tax provision	$	29,129	$	21,794	$	16,807

Schedule of Income Tax Reconciliation

The provision for income taxes differs from the amount computed by applying the Federal statutory rate of 21% for 2021, 2020, and 2019 to earnings before income tax expense due to the following:

	2021		2020		2019
Income tax at Federal statutory rate	$	26,299	$	22,348	$	20,260
State income taxes, net of Federal income taxes	2,406		2,288		(244)
Stock Options	(924)		(1,529)		(222)
GILTI	—		—		2,507
FDII	(1,540)		(1,400)		(1,922)
Patent Box Decree (related to prior years)	—		—		(1,948)
Foreign Tax Credits	—		—		(1,125)
Other	2,888		87		(499)
Total income tax provision	$	29,129	$	21,794	$	16,807

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 were as follows:

	2021		2020
Deferred tax assets:
Inventories	$	495	$	1,470
Restricted stock and stock options	4,082		3,862
Lease liabilities	1,807		1,641
Currency and interest rate swap	649		2,831
Other	3,657		3,308
Total deferred tax assets	10,690		13,112
Deferred tax liabilities:
Amortization	$	28,133	$	32,872
Depreciation	25,484		27,897
Prepaid expenses	733		915
Right of use assets	1,769		1,926
Other	1,026		731
Total deferred tax liabilities	57,145		64,341
Valuation allowance	—		130
Net deferred tax liability	$	46,455	$	51,359

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is included in other long-term obligations on the Company’s consolidated balance sheets, is as follows:

	2021		2020		2019
Balance at beginning of period	$	5,335	$	4,762	$	5,709
Increases for tax positions of prior years	806		267		431
Decreases for tax positions of prior years	(260)		(391)		(1,978)
Increases for tax positions related to current year	—		697		600
Balance at end of period	$	5,881	$	5,335	$	4,762

All of Balchem's unrecognized tax benefits, if recognized in future periods, would impact the Company's effective tax rate in such future periods.