XML 47 R20.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We are subject to U.S. federal income tax as well as income tax in multiple state and local jurisdictions. With few exceptions, the statute of limitations for these jurisdictions is no longer open for audit or examinations for the years before 2020 for federal and state income taxes in the U.S. We file consolidated federal income tax returns that include all of our U.S. subsidiaries. The components of income from continuing operations before income taxes were as follows (in thousands):
| For the years ended December 31,
| 2024 |  | 2023 |  | 2022
Domestic | $ | 41,599 |  |  | $ | 52,137 |  |  | $ | 36,694 |
Foreign | 4,881 |  |  | 4,776 |  |  | (983) |
Income from continuing operations before income taxes | $ | 46,480 |  |  | $ | 56,913 |  |  | $ | 35,711 |
The components of the provision for income taxes from continuing operations were as follows (in thousands):
| For the years ended December 31,
| 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Federal | $ | 11,670 |  |  | $ | 11,556 |  |  | $ | 9,483 |
State | 2,132 |  |  | 2,205 |  |  | 1,485 |
Foreign | 1,573 |  |  | 1,138 |  |  | 35 |
Total current | 15,375 |  |  | 14,899 |  |  | 11,003 |
Deferred: |  |  |  |  |
Federal | (4,725) |  |  | (1,148) |  |  | (1,890) |
State | (489) |  |  | 3 |  |  | (61) |
Foreign | (179) |  |  | 7 |  |  | — |
Total deferred | (5,393) |  |  | (1,138) |  |  | (1,951) |
Provision for income taxes | $ | 9,982 |  |  | $ | 13,761 |  |  | $ | 9,052 |
The Company's effective tax rate differs from the federal statutory rate. A reconciliation of the provision for income taxes from continuing operations to the amount computed by applying the statutory federal income tax rate is as follows (in thousands):
| For the years ended December 31,
| 2024 |  | 2023 |  | 2022
Tax at statutory federal income tax rate | $ | 9,761 |  |  | $ | 11,952 |  |  | $ | 7,499 |
Increases (decreases) in tax resulting from: |  |  |  |  |
State taxes, net of federal tax benefit | 1,738 |  |  | 2,019 |  |  | 1,459 |
Permanent differences, net | (634) |  |  | (193) |  |  | 287 |
Tax credits | (454) |  |  | (461) |  |  | (418) |
Prior year true-up adjustment | (931) |  |  | 269 |  |  | (45) |
Valuation allowance | 378 |  |  | 77 |  |  | 324 |
Other provision adjustments | 124 |  |  | 98 |  |  | (54) |
Provision for income taxes | $ | 9,982 |  |  | $ | 13,761 |  |  | $ | 9,052 |
Effective tax rate | 21.5 | % |  | 24.2 | % |  | 25.3 | %
The tax effect of temporary differences representing deferred tax assets and liabilities was as follows (in thousands):
| As of December 31,
| 2024 |  | 2023
Deferred compensation and accrued paid leave | $ | 2,767 |  |  | $ | 3,003 |
Accrued expense | 2,094 |  |  | 1,429 |
Inventory reserve | 23,463 |  |  | 13,980 |
Operating lease liabilities | 14,362 |  |  | 6,249 |
Stock-based compensation | 2,084 |  |  | 1,697 |
Capitalized inventory | 1,741 |  |  | 1,335 |
US operating and capital loss carryforward | 12,777 |  |  | 7,637 |
Disallowed interest expense | 9,450 |  |  | 1,663 |
Tax credit carryforward | 1,421 |  |  | 1,492 |
Foreign country operating loss carryforward | 1,364 |  |  | 806 |
Interest capitalized | 2,030 |  |  | — |
Transaction costs | 357 |  |  | — |
| 73,910 |  |  | 39,291 |
Valuation allowance (a) | (19,301) |  |  | (9,906) |
Total gross deferred tax assets | 54,609 |  |  | 29,385 |
Interest rate swaps | (1,021) |  |  | (708) |
Depreciation | (3,959) |  |  | (2,925) |
Goodwill and intangible assets | (38,279) |  |  | (26,666) |
Operating lease right-of-use assets | (10,962) |  |  | (5,939) |
Other | (270) |  |  | (132) |
Total gross deferred tax liabilities | (54,491) |  |  | (36,370) |
Net deferred tax assets (liabilities) (b) | $ | 118 |  |  | $ | (6,985) |
(a) A valuation allowance was provided against US capital loss in connection with the stock sale of Prime Turbines, certain state net operating loss, tax credit, and foreign tax loss deferred tax assets arising from carryforwards of unused tax benefits.
(b) Deferred tax assets are included within other assets in our consolidated balance sheets.
As of December 31, 2024, we had various tax losses and tax credits that may be applied against future taxable income. The majority of such tax attributes will expire in 2025 through 2044; however, some may be carried forward indefinitely. The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% intended to be effective on January 1, 2024. While the US has not yet adopted the Pillar Two rules, many countries took steps to incorporate Pillar Two model rule concepts into their domestic laws in 2023. Considering that we do not have material operations in jurisdictions with tax rates lower than the Pillar Two minimum, we do not expect these rules will significantly increase our global tax costs. We will continue to monitor US and global legislative action related to Pillar Two for future potential impacts.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration