INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense consists of the following:

	2022		2021		2020
Current:
Federal	$	26,423	$	25,019	$	19,249
Foreign	7,103		7,553		3,399
State	3,964		3,664		3,590
Deferred:
Federal	(7,532)		(3,709)		(3,017)
Foreign	(215)		(3,038)		167
State	(1,361)		(360)		(1,594)
Total income tax provision	$	28,382	$	29,129	$	21,794

Schedule of Income Tax Reconciliation

The provision for income taxes differs from the amount computed by applying the Federal statutory rate of 21% for 2022, 2021, and 2020 to earnings before income tax expense due to the following:

	2022		2021		2020
Income tax at Federal statutory rate	$	28,087	$	26,299	$	22,348
State income taxes, net of Federal income taxes	1,862		2,406		2,288
Stock Options	(676)		(924)		(1,529)
FDII	(1,778)		(1,540)		(1,400)
Foreign rate differential	2,066		1,188		413
Other	(1,179)		1,700		(326)
Total income tax provision	$	28,382	$	29,129	$	21,794

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, 2022 and 2021 were as follows:

	2022		2021
Deferred tax assets:
Inventories	$	1,038	$	495
Restricted stock and stock options	3,932		4,082
Lease liabilities	5,439		1,807
Foreign currency and interest rate swaps	—		649
Research and development	4,134		—
Other	3,717		3,657
Total deferred tax assets	18,260		10,690
Deferred tax (liabilities):
Amortization	$	(46,688)	$	(28,133)
Depreciation	(25,097)		(25,484)
Prepaid expenses	(462)		(733)
Foreign currency and interest rate swaps	(1,456)		—
Right of use assets	(5,324)		(1,769)
Other	(1,995)		(1,026)
Total deferred tax (liabilities)	(81,022)		(57,145)
Valuation allowance	(22)		—
Net deferred tax (liability)	$	(62,784)	$	(46,455)

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:

	2022		2021		2020
Balance at beginning of period	$	5,881	$	5,335	$	4,762
Increases for tax positions of prior years	2,194		806		267
Decreases for tax positions of prior years	(2,260)		(260)		(391)
Increases for tax positions related to current year	—		—		697
Balance at end of period	$	5,815	$	5,881	$	5,335

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