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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXESThe Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The components of income before taxes from continuing operations consisted of the following for the years ended December 31 (in thousands):
| 2021 |  | 2020 |  | 2019
Domestic | $ | 93,155 |  |  | $ | 108,930 |  |  | $ | 78,351 |
Foreign | 6,407 |  |  | (1,171) |  |  | (270) |
Income before taxes from continuing operations | $ | 99,562 |  |  | $ | 107,759 |  |  | $ | 78,081 |
The provision for income taxes from continuing operations for the years ended December 31 consisted of the following (in thousands):
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
U.S. Federal | $ | 16,137 |  |  | $ | 16,505 |  |  | $ | 10,394 |
State | 5,009 |  |  | 4,071 |  |  | 3,547 |
Foreign | 932 |  |  | 106 |  |  | 92 |
Total current | 22,078 |  |  | 20,682 |  |  | 14,033 |
Deferred: |  |  |  |  |
U.S. Federal | 1,766 |  |  | 3,620 |  |  | 3,740 |
State | 134 |  |  | 672 |  |  | 486 |
Foreign | 1,068 |  |  | (506) |  |  | (106) |
Total deferred | 2,968 |  |  | 3,786 |  |  | 4,120 |
Provision for income taxes | $ | 25,046 |  |  | $ | 24,468 |  |  | $ | 18,153 |
The provision for income taxes from discontinued operations for the years ended December 31 consisted of the following (in thousands):
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
U.S. Federal | $ | 362 |  |  | $ | 1,345 |  |  | $ | 885 |
State | 139 |  |  | 57 |  |  | 4 |
Foreign | 214 |  |  | 1,725 |  |  | 1,447 |
Total current | 715 |  |  | 3,127 |  |  | 2,336 |
Deferred: |  |  |  |  |
U.S. Federal | (340) |  |  | (876) |  |  | (823) |
State | 2 |  |  | 10 |  |  | 23 |
Foreign | (11) |  |  | (138) |  |  | (17) |
Total deferred | (349) |  |  | (1,004) |  |  | (817) |
Provision for income taxes | $ | 366 |  |  | $ | 2,123 |  |  | $ | 1,519 |
The provision for income taxes from continuing operations differs from the federal statutory rate of 21% due to the following (in thousands) for the years ended December 31:
| 2021 |  | 2020 |  | 2019
Statutory rate | 20,908 |  |  | 21.0 | % |  | 22,629 |  |  | 21.0 | % |  | 16,397 |  |  | 21.0 | %
State taxes, less federal effect | 4,068 |  |  | 4.1 | % |  | 3,650 |  |  | 3.4 | % |  | 3,194 |  |  | 4.1 | %
Federal tax credits | (587) |  |  | (0.6) | % |  | (1,064) |  |  | (1.0) | % |  | (1,621) |  |  | (2.1) | %
Excess tax benefit on stock based compensation | (2,039) |  |  | (2.0) | % |  | (1,674) |  |  | (1.6) | % |  | (871) |  |  | (1.1) | %
Uncertain tax positions | — |  |  | — | % |  | — |  |  | — | % |  | (260) |  |  | (0.3) | %
Executive compensation | 1,781 |  |  | 1.8 | % |  | 1,114 |  |  | 1.0 | % |  | 1,132 |  |  | 1.4 | %
Change in valuation allowance | — |  |  | — | % |  | (130) |  |  | (0.1) | % |  | 88 |  |  | 0.1 | %
Other | 915 |  |  | 0.9 | % |  | (57) |  |  | — | % |  | 94 |  |  | 0.1 | %
| $ | 25,046 |  |  | 25.2 | % |  | $ | 24,468 |  |  | 22.7 | % |  | $ | 18,153 |  |  | 23.2 | %
Deferred tax liabilities at December 31 consist of the following (in thousands):
| 2021 |  | 2020
Depreciation | $ | 9,633 |  |  | $ | 7,697 |
Goodwill | 48,265 |  |  | 41,842 |
Intangible assets | 1,657 |  |  | 5,632 |
Other | 5,298 |  |  | 6,878 |
Gross deferred tax liabilities | 64,853 |  |  | 62,049 |
Capital loss carryforward | (27,328) |  |  | — |
Equity compensation | (8,236) |  |  | (7,496) |
Other | (15,641) |  |  | (15,682) |
Gross deferred tax assets | (51,205) |  |  | (23,178) |
Valuation allowances | 26,581 |  |  | 111 |
Deferred tax assets, net of valuation allowances | (24,624) |  |  | (23,067) |
Net deferred tax liabilities | $ | 40,229 |  |  | $ | 38,982 |
At December 31, 2021, the Company had total net operating loss carry forwards of $15.1 million, which included $0.4 million for federal, $14.3 million for state, and $0.4 million for foreign income tax purposes. The federal and state net operating loss carry forwards expire between 2022 and 2041. The foreign net operating loss carry forwards expire between 2022 and 2030. The Company recognized a total of $0.7 million of deferred tax assets, net of the federal tax benefit, related to these net operating losses prior to any valuation allowances, which included $0.1 million of federal and $0.5 million of state deferred tax assets and $0.1 million of foreign deferred tax assets. As a result of the sale of the Industrial business during 2021, the Company will generate a capital loss of $113.8 million for federal and state purposes to the extent allowable under state tax regulations. The capital loss carryforward will expire in 2026. The Company recognized a total of $27.3 million of deferred tax assets, net of the federal benefit, related to this carryforward prior to any valuation allowances, which included $23.0 million of federal and $4.3 million of state deferred tax assets. Deferred taxes include net deferred tax assets relating to certain state and foreign tax jurisdictions. A reduction of the carrying amount of deferred tax assets by a valuation allowance is required if it is more likely than not that such assets will not be realized. In 2019, a valuation allowance was recorded in China. In 2020, the valuation allowance in China was reversed and a tax attribute valuation allowance was also reversed as the Company expects to utilize the attribute. In 2021, a valuation allowance was recorded on federal and state capital loss carry forwards which are not expected to be utilized before expiration. The following sets forth a reconciliation of the beginning and ending amount of the Company’s valuation allowance (in thousands):
| 2021 |  | 2020 |  | 2019
Balance as of January 1 | $ | 111 |  |  | $ | 298 |  |  | $ | 206 |
Cost charged to the tax provision | 13 |  |  | 70 |  |  | 100 |
Reductions | (41) |  |  | (248) |  |  | (10) |
Reclassification from discontinued operations upon sale of industrial group | 26,498 |  |  | — |  |  | — |
Currency translation | — |  |  | (9) |  |  | 2 |
Balance as of December 31 | $ | 26,581 |  |  | $ | 111 |  |  | $ | 298 |
The Company made net payments for income taxes for the following amounts for the years ended December 31 (in thousands):
| 2021 |  | 2020 |  | 2019
Payments made for income taxes, net | $ | 22,076 |  |  | $ | 21,351 |  |  | $ | 16,744 |
At December 31, 2021, the Company had approximately $4.2 million of undistributed earnings of foreign subsidiaries. The Company continues to maintain its assertion that all remaining foreign earnings will be indefinitely reinvested. Any excess earnings could be used to grow the Company's foreign operations through launches of new capital projects or additional acquisitions. Determination of the amount of unrecognized deferred U.S. income tax liability related to the Company's remaining unremitted foreign earnings is not practicable due to the complexities associated with its hypothetical calculation. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Balance as of January 1 | $ | — |  |  | $ | — |  |  | $ | 329 |
Additions for tax positions of the current year | — |  |  | — |  |  | — |
Additions for tax positions of prior years | — |  |  | — |  |  | — |
Reductions for tax positions of prior years for: |  |  |  |  |
Settlements and changes in judgment | — |  |  | — |  |  | — |
Lapses of applicable statute of limitations | — |  |  | — |  |  | (329) |
Divestitures and foreign currency translation | — |  |  | — |  |  | — |
Balance as of December 31 | $ | — |  |  | $ | — |  |  | $ | — |
In 2021 and 2020, the Company did not have any unrecognized tax benefits. In 2019, unrecognized tax benefit of $0.3 million was reversed as a result of the lapse of the statute of limitations. The Company classifies accrued interest and penalties related to unrecognized tax benefits in income tax expense. No interest or penalties have been recognized during the years ended December 31, 2021, 2020 or 2019. The Company and its U.S. subsidiaries file a U.S. federal consolidated income tax return. Foreign and U.S. state jurisdictions have statute of limitations generally ranging from four to ten years. An examination of the Company's U.S. federal consolidated income tax return for 2015 through 2018 was closed during 2021 with no changes. No other open periods are currently under examination.

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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