XML 38 R17.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components of income before income taxes are as follows (in thousands):
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Domestic | $ | 79,785 |  |  | $ | 59,736 |  |  | $ | 9,897 |
Foreign | 7,146 |  |  | 6,165 |  |  | 9,285 |
Total income before taxes | $ | 86,931 |  |  | $ | 65,901 |  |  | $ | 19,182 |
The provision for income taxes consisted of the following (in thousands):
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Current - |  |  |  |  |
Federal | $ | 22,514 |  |  | $ | 18,591 |  |  | $ | (5,243) |
State | 2,620 |  |  | 4,501 |  |  | (522) |
Foreign | 2,044 |  |  | 2,248 |  |  | 3,056 |
Total current | 27,178 |  |  | 25,340 |  |  | (2,709) |
Deferred - |  |  |  |  |
Federal | (7,679) |  |  | (5,875) |  |  | 5,016 |
State | (1,133) |  |  | (1,083) |  |  | 1,810 |
Foreign | (247) |  |  | (583) |  |  | (686) |
Total deferred | (9,059) |  |  | (7,541) |  |  | 6,140 |
Total current and deferred taxes | $ | 18,119 |  |  | $ | 17,799 |  |  | $ | 3,431 |
The difference between income taxes computed at the statutory income tax rate and the provision for income taxes is as follows (in thousands):
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Income taxes computed at federal statutory rate | $ | 18,255 |  |  | $ | 13,839 |  |  | $ | 4,028 |
State income taxes, net of federal benefit | 1,669 |  |  | 2,701 |  |  | 1,017 |
Foreign taxes | 144 |  |  | 122 |  |  | 186 |
Nondeductible expenses | 2,670 |  |  | 1,158 |  |  | 353 |
Enacted rate changes | (58) |  |  | 240 |  |  | 318 |
Research and development tax credit | (4,811) |  |  | (250) |  |  | (1,036) |
Valuation allowance | 274 |  |  | (1) |  |  | 1 |
Tax reform deferred tax remeasurement | — |  |  | — |  |  | (2,587) |
Uncertain tax positions | (33) |  |  | 271 |  |  | 871 |
Other | 9 |  |  | (281) |  |  | 280 |
Total income tax expense | $ | 18,119 |  |  | $ | 17,799 |  |  | $ | 3,431 |
Deferred tax liabilities and assets were comprised of the following (in thousands):
| December 31,
| 2023 |  | 2022
Deferred tax assets: |  |  |
Allowance for doubtful accounts | $ | 879 |  |  | $ | 1,570 |
Inventory | 3,371 |  |  | 4,585 |
Texas research and development tax credit carryforward | 2,239 |  |  | 2,329 |
Louisiana research and development tax credit carryforward | 10 |  |  | 10 |
Foreign tax credit carryforward | 64 |  |  | 64 |
Net operating loss carryforward | 1,328 |  |  | 1,201 |
Capital loss carryforward | 4 |  |  | 4 |
Accruals | 8,190 |  |  | 6,190 |
ROU asset | 220 |  |  | 219 |
Research expenses | 23,822 |  |  | 16,945 |
Total deferred tax assets | 40,127 |  |  | 33,117 |
Less valuation allowance | (278) |  |  | (4) |
Total deferred tax asset, net of valuation allowance | 39,849 |  |  | 33,113 |
Deferred tax liabilities: |  |  |
Goodwill | (18,476) |  |  | (18,439) |
Intangibles | (8,363) |  |  | (9,553) |
Property and equipment | (7,885) |  |  | (8,542) |
Deferred compensation | (215) |  |  | — |
Unremitted foreign earnings | (421) |  |  | (421) |
Method changes | (342) |  |  | (225) |
Other | (643) |  |  | (825) |
Total deferred tax liability | $ | (36,345) |  |  | $ | (38,005) |
Net deferred tax asset (liability) | $ | 3,504 |  | 3504000 | $ | (4,892) |
The Company records a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions. If the Company was to determine that it would be able to realize the deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. As of December 31, 2023, the valuation allowance primarily relates to state operating loss and foreign capital loss carryforwards. The following summarizes changes in the balance of valuation allowances on deferred tax assets (in thousands):
| 2023 |  | 2022 |  | 2021
Balance at January 1 | $ | (4) |  |  | $ | (4) |  |  | $ | (12,813) |
Changes due to state operating loss and foreign capital loss carryforwards | (274) |  |  | — |  |  | 12,809 |
Balance at December 31 | $ | (278) |  |  | $ | (4) |  |  | $ | (4) |
Expected tax benefit on carryforwards available for use on future income tax returns, prior to valuation allowance, at December 31, 2023, are as follows (in thousands):
| Domestic |  | Foreign |  | Expiration
Net operating loss - foreign | $ | — |  |  | $ | 491 |  |  | 2034-2042
Net operating loss - federal | 562 |  |  | — |  |  | 2036-2042
Net operating loss - state | 338 |  |  | — |  |  | Indefinite
Capital loss carryforward - foreign | — |  |  | 4 |  |  | Indefinite
Foreign tax credits | 64 |  |  | — |  |  | 2023,2025
Texas research and development tax credits | 2,239 |  |  | — |  |  | 2037-2042
Louisiana research and development tax credits | $ | 10 |  |  | $ | — |  |  | 2024-2026
Changes in the balance of unrecognized tax benefits excluding interest and penalties on uncertain tax positions are as follows (in thousands):
| Assets (Liabilities)
| 2023 |  | 2022 |  | 2021
Balance at January 1, | $ | (5,918) |  |  | $ | (6,316) |  |  | $ | (5,057) |
Increases related to prior year tax positions | — |  |  | — |  |  | (687) |
Decreases related to prior year tax positions | 1,475 |  |  | 614 |  |  | — |
Increases related to current year tax positions | (1,312) |  |  | (216) |  |  | (572) |
Balance at December 31, | $ | (5,755) |  |  | $ | (5,918) |  |  | $ | (6,316) |
As of December 31, 2023, the Company had recorded a total tax benefit of $28.1 million related to federal and state research and development tax credits. This benefit is partially offset by $5.6 million uncertain tax position due to the uncertainty related to the realizability of the federal research and development tax credits. The Company is also recording a $0.1 million uncertain tax position related to non-deductible auto expense compensation. To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts are classified as a component of income tax provision (benefit) in the consolidated financial statements consistent with the Company's policy. For the year ended December 31, 2023, the Company recorded $0.2 million tax expense for interest and penalties related to uncertain tax positions. The Company is subject to taxation in the U.S., various states, and foreign jurisdictions. The Company has significant operations in the U.S. and Canada and to a lesser extent in various other international jurisdictions. Tax years that remain subject to examination vary by legal entity but are generally closed in the U.S. for the tax years prior to 2015 and outside the U.S. for the tax years ended prior to 2018. There is a 4 year statute of limitations for Canadian returns based on the date tax assessment is received, not filing date. Tax assessments are typically received within weeks of filing date.

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 taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: 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 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: 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 5: 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 6: 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//1943274/2147482526/740-270-50-1 Reference 7: 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 8: 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 9: 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 10: 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