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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Tax Disclosure | The Company's income (loss) before income taxes and income tax expense (benefit), each by tax jurisdiction, consists of the following (dollars in thousands):
|  | Year ended December 31,
|  | 2021 |  | 2020 |  | 2019
Income (loss) before income taxes: |  |  |  |  |  |
Domestic |  | $ | 28,380 |  |  | $ | (134,630) |  |  | $ | 52,190 |
Foreign |  | 40,730 |  |  | 31,920 |  |  | 26,070 |
Total income (loss) before income taxes |  | $ | 69,110 |  |  | $ | (102,710) |  |  | $ | 78,260 |
Current income tax expense: |  |  |  |  |  |
Federal |  | $ | 940 |  |  | $ | 200 |  |  | $ | 3,530 |
State and local |  | 530 |  |  | 810 |  |  | 1,280 |
Foreign |  | 8,840 |  |  | 7,750 |  |  | 7,070 |
Total current income tax expense |  | 10,310 |  |  | 8,760 |  |  | 11,880 |
Deferred income tax expense (benefit): |  |  |  |  |  |
Federal |  | 5,450 |  |  | (16,900) |  |  | 4,890 |
State and local |  | 670 |  |  | (4,430) |  |  | 500 |
Foreign |  | (4,630) |  |  | (10,380) |  |  | (950) |
Total deferred income tax expense (benefit) |  | 1,490 |  |  | (31,710) |  |  | 4,440 |
Income tax expense (benefit) |  | $ | 11,800 |  |  | $ | (22,950) |  |  | $ | 16,320 |
The components of deferred taxes are as follows (dollars in thousands):
|  | December 31, 2021 |  | December 31, 2020
Deferred tax assets: |  |  |  |
Accounts receivable |  | $ | 950 |  |  | $ | 260 |
Inventories |  | 5,330 |  |  | 5,080 |
Accrued liabilities and other long-term liabilities |  | 15,320 |  |  | 19,190 |
Operating lease liability |  | 13,440 |  |  | 8,950 |
Tax loss and credit carryforwards |  | 30,690 |  |  | 20,760 |
Other |  | 340 |  |  | 340 |
Gross deferred tax asset |  | 66,070 |  |  | 54,580 |
Valuation allowances |  | (19,960) |  |  | (10,180) |
Net deferred tax asset |  | 46,110 |  |  | 44,400 |
Deferred tax liabilities: |  |  |  |
Property and equipment |  | (23,920) |  |  | (24,140) |
Right of use asset |  | (13,130) |  |  | (8,930) |
Goodwill and other intangible assets |  | (20,160) |  |  | (16,230) |
Investment in foreign affiliates, including withholding tax |  | (420) |  |  | (370) |
Gross deferred tax liability |  | (57,630) |  |  | (49,670) |
Net deferred tax liability |  | $ | (11,520) |  |  | $ | (5,270) |
The following is a reconciliation of income tax expense (benefit) computed at the U.S. federal statutory rate to income tax expense (benefit) allocated to income (loss) before income taxes (dollars in thousands):
|  | Year ended December 31,
|  | 2021 |  | 2020 |  | 2019
U.S. federal statutory rate |  | 21 | % |  | 21 | % |  | 21 | %
Tax at U.S. federal statutory rate |  | $ | 14,550 |  |  | $ | (21,570) |  |  | $ | 16,440 |
State and local taxes, net of federal tax benefit |  | 960 |  |  | (2,850) |  |  | 970 |
Differences in statutory foreign tax rates |  | (1,690) |  |  | (1,500) |  |  | (870) |
Change in recognized tax benefits |  | (550) |  |  | (920) |  |  | (920) |
Goodwill and other intangible assets impairment |  | — |  |  | 13,430 |  |  | — |
Tax credits and incentives |  | (5,060) |  |  | (2,130) |  |  | (1,160) |
Net change in valuation allowance |  | 2,100 |  |  | (6,390) |  |  | 3,580 |
Nondeductible compensation |  | 2,280 |  |  | 260 |  |  | 210 |
Other, net |  | $ | (790) |  |  | $ | (1,280) |  |  | $ | (1,930) |
Income tax expense (benefit) |  | $ | 11,800 |  |  | $ | (22,950) |  |  | $ | 16,320 |
During 2020, the Company undertook certain tax-planning actions with respect to intercompany debt restructuring within the group. These actions resulted in the recognition of an approximate $6.4 million deferred tax benefit related to an interest limitation carryforward. The Company has recorded deferred tax assets on approximately $34.0 million of various state operating loss carryforwards and $57.6 million of various foreign operating loss carryforwards. The majority of the state tax loss carryforwards expire between 2026 and 2032 and the majority of the foreign losses have indefinite carryforward periods. The Company has not made a provision for U.S. or additional foreign withholding taxes related to investments in foreign subsidiaries that are indefinitely reinvested since any excess of the amount for financial reporting over the tax basis in these investments is not significant as of December 31, 2021. Unrecognized Tax Benefits The Company had approximately $1.3 million and $1.6 million of unrecognized tax benefits ("UTBs") as of December 31, 2021 and 2020, respectively. If the UTBs were recognized, the impact to the Company's effective tax rate would be to reduce reported income tax expense for the years ended December 31, 2021 and 2020 by approximately $1.1 million and $1.4 million, respectively. A reconciliation of the change in the UTBs for the years ended December 31, 2021 and 2020 is as follows (dollars in thousands):
|  | Unrecognized Tax Benefits
Balance at December 31, 2019 |  | $ | 2,250 |
Tax positions related to current year: |  |
Additions |  | 150 |
Tax positions related to prior years: |  |
Additions |  | — |
Reductions |  | — |
Settlements |  | — |
Lapses in the statutes of limitations |  | (760) |
Balance at December 31, 2020 |  | $ | 1,640 |
Tax positions related to current year: |  |
Additions |  | 130 |
Tax positions related to prior years: |  |
Additions |  | 20 |
Reductions |  | — |
Settlements |  | — |
Lapses in the statutes of limitations |  | (540) |
Balance at December 31, 2021 |  | $ | 1,250 |
In addition to the UTBs summarized above, the Company has recorded approximately $0.8 million and $0.8 million in potential interest and penalties associated with uncertain tax positions as of December 31, 2021 and 2020, respectively. The Company is subject to U.S. federal, state and local, and certain non-U.S. income tax examinations for tax years 2014 through 2021. In addition, there are currently several state and foreign income tax examinations in process. The Company does not believe that the results of these examinations will have a significant impact on the Company's tax position or its effective tax rate. Management monitors changes in tax statutes and regulations and the issuance of judicial decisions to determine the potential impact to UTBs and is not aware of, nor does it anticipate, any subsequent events that could have a significant impact on the Company's financial position during the next twelve months.

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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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