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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
The provision for income taxes from operations consisted of the following: 
 Years Ended December 31,
(in thousands)
202320222021
Current
Federal$89,954 $90,703 $65,861 
State24,323 25,347 19,515 
Foreign15,824 12,544 7,641 
Deferred
Federal(6,466)(5,806)802 
State(860)(801)(169)
Foreign(215)(7,917)(1,548)
$122,560 $114,070 $92,102 
 

Income and loss from operations before income taxes for the years ended December 31, 2023, 2022, and 2021, respectively, consisted of the following:
 Years Ended December 31,
 (in thousands) 
202320222021
Domestic$427,296 $437,506 $336,085 
Foreign49,251 10,559 22,464 
$476,547 $448,065 $358,549 

As of December 31, 2023, the Company had $34.3 million of net operating loss carryforwards in various foreign taxing jurisdictions. Most of the tax losses can be carried forward indefinitely.

As of December 31, 2023, and 2022, the Company has valuation allowances of $10.4 million and $11.2 million, respectively. The valuation allowance decreased by $0.8 million for the years ended December 31, 2023, and December 31, 2022, respectively. The decrease in the 2023 valuation allowances was primarily due to expiration of certain U.S. foreign tax credit. The decrease in the 2022 valuation allowances was primarily the result of exchange rate fluctuation.

As of December 31, 2023, the Company asserts that its accumulated undistributed earnings generated by our foreign subsidiaries are permanently reinvested and as such, has not recognized a US deferred tax liability on its investment in foreign subsidiaries. The Company will continue to assess its permanent reinvestment assertion on a quarterly basis.
Reconciliations between the statutory federal income tax rates and the Company’s effective income tax rates as a percentage of income before income taxes for its operations were as follows:
 Years Ended December 31,
 (in thousands) 
202320222021
Federal tax rate21.0 %21.0 %21.0 %
State taxes, net of federal benefit3.8 %4.4 %4.3 %
Change in U.S. tax rate applied to deferred taxes0.6 %— %— %
True-up of prior year tax returns to tax provision(0.1)%— %(0.1)%
Difference between U.S. statutory and foreign local tax rates0.4 %0.2 %0.4 %
Change in uncertain tax position(0.6)%— %— %
Other0.6 %(0.1)%0.1 %
Effective income tax rate25.7 %25.5 %25.7 %

The tax effects of the significant temporary differences that constitute the deferred tax assets and liabilities as of December 31, 2023, and 2022, respectively, were as follows:
 As of December 31,
 (in thousands)
20232022
Deferred asset taxes
State tax$1,606 $1,857 
Health claims2,845 2,877 
Inventories8,218 7,902 
Sales incentive and advertising allowances1,997 2,191 
Lease obligations17,880 14,827 
Stock-based compensation3,962 2,251 
Foreign tax credit carryforwards3,905 4,961 
Non-United States tax loss carry forward5,882 6,557 
Acquisition expense1,904 2,409 
Capitalized research & development expenditures9,369 6,671 
Other3,689 2,533 
Total deferred tax assets$61,257 $55,036 
  Less valuation allowances(10,430)(11,180)
  Total deferred asset taxes$50,827 $43,856 
Deferred tax liabilities
Depreciation$(23,484)$(28,271)
Goodwill and other intangibles amortization(106,041)(102,998)
Right of use assets(17,517)(14,635)
Hedging OCI(1,386)(10,284)
Total deferred tax liabilities(148,428)(156,188)
Total Deferred tax asset/(liability)$(97,601)$(112,332)
A reconciliation of the beginning and ending amounts of unrecognized tax benefits in 2023, 2022 and 2021, respectively, were as follows, including foreign translation amounts:
Reconciliation of Unrecognized Tax Benefits202320222021
Balance as of January 1$7,232 $944 $1,168 
Additions based on tax positions related to prior years39 6,528 9 
Reductions based on tax positions related to prior years(103)(38)(47)
Additions for tax positions of the current year463 73 3 
Lapse of statute of limitations(2,990)(275)(189)
Balance as of December 31$4,641 $7,232 $944 

During 2023, the Company’s uncertain tax positions decreased by $3.0 million, primarily due to positions for open years of which were assumed in the Company’s acquisition of ETANCO. Tax positions of $2.0 million, $0.2 million, and $0.3 million are included in the balance of unrecognized tax benefits as of December 31, 2023, 2022, and 2021, respectively, which if recognized, would reduce the effective tax rate.

The Company accrues interest and penalties related to unrecognized tax benefits in income tax expense in accordance with the Company’s historical accounting policy. During the years ended December 31, 2023, 2022 and 2021, accrued interest decreased by $0.2 million, and increased by $0.7 million and an insignificant amount, respectively. The Company had accrued $0.7 million, $0.9 million and $0.2 million as of December 31, 2023, 2022 and 2021, respectively for the potential payment of interest and penalties before income tax benefits. The Company does not expect any material changes in unrecognized tax benefits within the next 12 months.
 
As of December 31, 2023, the Company remained subject to federal income tax examinations in the U.S. for the tax years 2020 through 2023. In addition, tax years 2018 through 2023 remain open to examination in states, local and foreign jurisdictions.