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Income Taxes (Notes)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Tax Disclosure
The Company's income before income taxes and income tax expense (benefit), each by tax jurisdiction, consists of the following (dollars in thousands):
 Year ended December 31,
 202420232022
Income before income taxes:   
Domestic$3,320 $20,660 $56,750 
Foreign26,720 29,930 30,920 
  Total income before income taxes$30,040 $50,590 $87,670 
Current income tax expense:
Federal$1,000 $2,740 $13,300 
State and local250 670 3,470 
Foreign7,080 8,690 6,170 
  Total current income tax expense8,330 12,100 22,940 
Deferred income tax expense (benefit):
Federal(900)1,800 (1,780)
State and local100 150 50 
Foreign(1,740)(3,820)290 
  Total deferred income tax expense (benefit)(2,540)(1,870)(1,440)
Income tax expense$5,790 $10,230 $21,500 
The components of deferred taxes are as follows (dollars in thousands):
 December 31, 2024December 31, 2023
Deferred tax assets:  
Accounts receivable$940 $1,770 
Inventories6,810 7,260 
Accrued liabilities and other long-term liabilities20,560 16,780 
Operating lease liability10,320 10,690 
Research and experimentation costs7,480 6,530 
Tax loss and credit carryforwards29,260 28,880 
Other(190)(470)
Gross deferred tax asset75,180 71,440 
Valuation allowances(16,430)(15,960)
Net deferred tax asset58,750 55,480 
Deferred tax liabilities:
Property and equipment(27,910)(30,300)
Right of use asset(9,670)(10,150)
Goodwill and other intangible assets(30,130)(27,580)
Investment in foreign affiliates, including withholding tax(390)(510)
Gross deferred tax liability(68,100)(68,540)
Net deferred tax liability$(9,350)$(13,060)
The Company recognizes a valuation allowance for the deferred tax asset associated with its foreign tax credits due to the uncertainty in the ability to utilize these credits in future years. The increase in the consolidated valuation allowance is primarily driven by an increase in the cumulative foreign tax credit carryover.
The following is a reconciliation of income tax expense computed at the U.S. federal statutory rate to income tax expense allocated to income before income taxes (dollars in thousands):
Year ended December 31,
 202420232022
U.S. federal statutory rate21 %21 %21 %
Tax at U.S. federal statutory rate$6,310 $10,610 $18,380 
State and local taxes, net of federal tax benefit200 710 2,790 
Differences in statutory foreign tax rates2,020 2,980 1,150 
Change in recognized tax benefits(420)(130)(600)
Share-based compensation500 250 680 
Tax credits and incentives(1,530)(1,570)(1,260)
Net change in valuation allowance(1,140)(2,700)340 
Nondeductible compensation(430)560 990 
Other, net280 (480)(970)
Income tax expense$5,790 $10,230 $21,500 
The Company has recorded deferred tax assets on $24.6 million of various state operating loss carryforwards and $92.7 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, 2024.
Unrecognized Tax Benefits
The Company had $0.6 million and $0.8 million of unrecognized tax benefits ("UTBs") as of December 31, 2024 and 2023, 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, 2024 and 2023 by $0.6 million and $1.0 million, respectively.
A reconciliation of the change in the UTBs for the years ended December 31, 2024 and 2023 is as follows (dollars in thousands):
 Unrecognized
Tax Benefits
Balance at December 31, 2022$1,110 
Tax positions related to current year: 
Additions140 
Tax positions related to prior years:
Additions— 
Reductions(20)
Settlements— 
Lapses in the statutes of limitations(400)
Balance at December 31, 2023$830 
Tax positions related to current year: 
Additions120 
Tax positions related to prior years:
Additions— 
Reductions(20)
Settlements— 
Lapses in the statutes of limitations(340)
Balance at December 31, 2024$590 
In addition to the UTBs summarized above, the Company has recorded $0.3 million and $0.4 million in potential interest and penalties associated with uncertain tax positions as of December 31, 2024 and 2023, respectively.
The Company is subject to U.S. federal, state and local, and certain non-U.S. income tax examinations for tax years 2015 through 2024. 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.