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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Summary of (Loss) Income Before Income Tax Benefits | The domestic and foreign components of income before provision for income taxes for the years ended December 31, 2023, 2022, and 2021, respectively, were as follows (in thousands):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Income (loss) before provision for income taxes from United States operations |  | $ | 25,250 |  |  | $ | 46,766 |  |  | $ | (7,791 | )
Income before provision for income taxes from foreign operations |  |  | 23,226 |  |  |  | 38,313 |  |  |  | 32,704 |
Income before provision for income taxes |  | $ | 48,476 |  |  | $ | 85,079 |  |  | $ | 24,913 |
Summary of Current and Deferred Portions of Income Tax Benefits | The domestic and foreign components of the provision for income taxes for the years ended December 31, 2023, 2022, and 2021, respectively, were as follows (in thousands):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 18,486 |  |  | $ | 179 |  |  | $ | 58 |
State |  |  | 5,772 |  |  |  | 4,593 |  |  |  | 4,003 |
Foreign |  |  | 6,480 |  |  |  | 9,817 |  |  |  | 7,618 |
Total Current |  | $ | 30,738 |  |  | $ | 14,589 |  |  | $ | 11,679 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | $ | (16,857 | ) |  | $ | 1,773 |  |  | $ | 549 |
State |  |  | (2,313 | ) |  |  | 5,030 |  |  |  | (4,495 | )
Foreign |  |  | (385 | ) |  |  | (917 | ) |  |  | 1,129 |
Total Deferred |  | $ | (19,555 | ) |  | $ | 5,886 |  |  | $ | (2,817 | )
Total |  | $ | 11,183 |  |  | $ | 20,475 |  |  | $ | 8,862 |
Summary of Reconciliation of U.S. Federal Statutory Income Tax Rate and Effective Income Tax Rate | The following table reconciles the U.S. statutory federal tax rate of 21% to the Company’s effective income tax rate of 23.07%, 24.07%, and 35.57%, for the years ended December 31, 2023, 2022, and 2021, respectively:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
U.S. statutory federal tax rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | %
State and local income taxes – net of federal tax benefits |  |  | 3.89 |  |  |  | 2.85 |  |  |  | (5.32 | )
Foreign rate difference |  |  | 0.59 |  |  |  | 0.67 |  |  |  | 3.25 |
Change in valuation allowances |  |  | 0.83 |  |  |  | (1.06 | ) |  |  | (2.72 | )
GILTI inclusion |  |  | — |  |  |  | 1.41 |  |  |  | 7.92 |
Transaction cost |  |  | 0.31 |  |  |  | — |  |  |  | 5.21 |
Share-based compensation |  |  | 3.36 |  |  |  | 0.62 |  |  |  | 5.82 |
Rate change impact |  |  | (0.66 | ) |  |  | (0.43 | ) |  |  | 2.23 |
US research and development credit |  |  | (3.96 | ) |  |  | (1.44 | ) |  |  | (7.15 | )
Withholding tax |  |  | 0.65 |  |  |  | 0.38 |  |  |  | 5.34 |
Return-to-provision adjustment |  |  | (3.56 | ) |  |  | — |  |  |  | — |
Other |  |  | 0.62 |  |  |  | 0.07 |  |  |  | (0.01 | )
Effective tax rate |  |  | 23.07 | % |  |  | 24.07 | % |  |  | 35.57 | %
Summary of Net Deferred Tax Assets | The primary components of temporary differences that give rise to the Company’s net deferred tax liability as of December 31, 2023 and 2022 consist of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Federal net operating loss carryforwards |  | $ | — |  |  | $ | 2,304 |
State net operating loss carryforwards |  |  | 5,101 |  |  |  | 6,782 |
Foreign net operating loss carryforwards |  |  | 5,653 |  |  |  | 4,888 |
Deferred revenues |  |  | 394 |  |  |  | 205 |
Bad debt reserves |  |  | 276 |  |  |  | 297 |
Employee benefits |  |  | 1,237 |  |  |  | 1,563 |
Share-based compensation |  |  | 660 |  |  |  | 546 |
Accrued expenses and loss reserves |  |  | 2,460 |  |  |  | 1,802 |
Section 267 adjustment |  |  | 3,742 |  |  |  | — |
Other deferred tax assets |  |  | 653 |  |  |  | 5,890 |
Less: Valuation allowances |  |  | (1,863 | ) |  |  | (1,467 | )
Total deferred tax asset |  | $ | 18,313 |  |  | $ | 22,810 |
Deferred tax liabilities: |  |  |  |  |  |
Trade names |  | $ | (16,420 | ) |  | $ | (17,632 | )
Goodwill |  |  | (12,929 | ) |  |  | (11,703 | )
Depreciable and other amortizable assets |  |  | (55,028 | ) |  |  | (77,127 | )
Other deferred liabilities |  |  | (2,424 | ) |  |  | (4,482 | )
Total deferred tax liability |  | $ | (86,801 | ) |  | $ | (110,944 | )
Net deferred tax liability |  | $ | (68,488 | ) |  | $ | (88,134 | )
Based upon the weight of all available evidence, the Company does not maintain a valuation allowance against its deferred tax assets in the United States.
Summary of Net Operating Loss Carryforwards | The net operating loss carryforward balances as of December 31, 2023 and 2022, are as follows (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Federal |  | $ | — |  |  | $ | 10,970 |
State |  |  | 97,659 |  |  |  | 125,989 |
Foreign |  |  | 24,980 |  |  |  | 24,207 |
|  | $ | 122,639 |  |  | $ | 161,166 |
Summary of Income Tax Contingencies | The aggregate changes in the balance of our gross unrecognized tax benefits, excluding accrued interest, for the years ended December 31, 2023, 2022, and 2021, were as follows (in thousands):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Balance, beginning of period |  | $ | 972 |  |  | $ | 1,399 |  |  | $ | 1,341 |
Increases for tax positions related to prior years |  |  | 39 |  |  |  | 28 |  |  |  | 58 |
Decreases for tax positions related to prior years |  |  | — |  |  |  | (455 | ) |  |  | — |
Balance, end of period |  | $ | 1,011 |  |  | $ | 972 |  |  | $ | 1,399 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
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