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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Note 10 — Income Taxes Provision for Income Taxes Income (loss) from continuing operations before provision for income taxes was as follows (in thousands):
|  | Years Ended |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Domestic |  | $ | (25,366 | ) |  | $ | (15,565 | ) |  | $ | (16,245 | )
Foreign |  |  | 70,918 |  |  |  | 46,869 |  |  |  | 24,512 |
Income before income taxes |  | $ | 45,552 |  |  | $ | 31,304 |  |  | $ | 8,267 |
The provision (benefit) for income taxes consisted of the following (in thousands):
|  | Years Ended |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current tax provision: |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | — |  |  | $ | — |  |  | $ | 2 |
State |  |  | — |  |  |  | — |  |  |  | 15 |
Foreign |  |  | 8,141 |  |  |  | 5,308 |  |  |  | 3,186 |
Total current provision |  |  | 8,141 |  |  |  | 5,308 |  |  |  | 3,203 |
Deferred tax provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  |  | (867 | ) |  |  | 739 |  |  |  | (573 | )
State |  |  | 38 |  |  |  | 106 |  |  |  | 78 |
Foreign |  |  | (515 | ) |  |  | 650 |  |  |  | (354 | )
Total deferred provision (benefit) |  |  | (1,344 | ) |  |  | 1,495 |  |  |  | (849 | )
Provision for income taxes |  | $ | 6,797 |  |  | $ | 6,803 |  |  | $ | 2,354 |
A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate was as follows (dollars in thousands):
|  | Years Ended |
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | Amount |  |  | Amount |  |  | Amount |
Income before income taxes |  | $ | 45,552 |  |  | $ | 31,304 |  |  | $ | 8,267 |
Income tax expense: |  |  |  |  |  |  |  |  |  |  |  |
Taxes at federal statutory tax rate |  |  | 9,566 |  |  |  | 6,574 |  |  |  | 1,736 |
State taxes, net of federal income tax benefit |  |  | 3,673 |  |  |  | (448 | ) |  |  | (1,129 | )
Equity compensation |  |  | 1,336 |  |  |  | (4,613 | ) |  |  | (5,203 | )
Foreign rate differential |  |  | (7,022 | ) |  |  | (3,890 | ) |  |  | (2,304 | )
GILTI inclusion |  |  | 14,583 |  |  |  | 171 |  |  |  | 4,461 |
Valuation allowance |  |  | (15,785 | ) |  |  | 9,302 |  |  |  | 4,899 |
Other |  |  | 446 |  |  |  | (293 | ) |  |  | (106 | )
Total income tax expense |  | $ | 6,797 |  |  | $ | 6,803 |  |  | $ | 2,354 |
Effective tax rate |  |  | 14.9 | % |  |  | 21.7 | % |  |  | 28.5 | %
The Company has elected to recognize U.S. taxes on GILTI as a period expense in the year the tax is incurred. The Company utilized the high-tax exception to exclude income from foreign jurisdictions with foreign taxes at an effective rate that is higher than 90 percent of the applicable highest U.S. corporate tax rate. Note 10 — Income Taxes (Continued) Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets (liabilities) were as follows (in thousands):
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued expenses |  | $ | 2,021 |  |  | $ | 2,450 |
Stock-based compensation |  |  | 2,851 |  |  |  | 2,146 |
Operating lease liability |  |  | 6,071 |  |  |  | 6,894 |
Net operating loss and other credit carryforwards |  |  | 36,567 |  |  |  | 51,323 |
Other deferred tax assets |  |  | 1,621 |  |  |  | 2,682 |
Gross deferred tax assets |  |  | 49,131 |  |  |  | 65,495 |
Valuation allowance |  |  | (36,009 | ) |  |  | (51,794 | )
Total deferred tax assets |  | $ | 13,122 |  |  | $ | 13,701 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant, equipment and intangibles |  | $ | (2,169 | ) |  | $ | (1,651 | )
Operating lease ROU assets |  |  | (5,979 | ) |  |  | (6,862 | )
Foreign taxes |  |  | (1,639 | ) |  |  | (2,186 | )
Total deferred tax liabilities |  |  | (9,787 | ) |  |  | (10,699 | )
Total net deferred tax assets |  | $ | 3,335 |  |  | $ | 3,002 |
The ultimate realization of deferred tax assets is dependent upon future generation of income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the projected future income and tax planning strategies in making this assessment. In addition, management considers all other available positive and negative evidence in its analysis. This includes existing profits in foreign jurisdiction as well as projected future profits. Under the incremental cash tax savings approach, the total net deferred assets represent the Company’s net cash tax savings and benefit at December 30, 2022 Under the incremental cash tax savings approach, the deferred tax asset valuation allowance activity was as follows (in thousands):
|  | Years Ended |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Balance at beginning of period |  | $ | (51,794 | ) |  | $ | (42,502 | ) |  | $ | (37,007 | )
Release (recapture) due to incremental cash tax savings |  |  | 829 |  |  |  | (845 | ) |  |  | 495 |
Current year change due to deferred tax asset realization |  |  | 14,956 |  |  |  | (8,447 | ) |  |  | (5,990 | )
Balance at end of period |  | $ | (36,009 | ) |  | $ | (51,794 | ) |  | $ | (42,502 | )
Note 10 — Income Taxes (Continued) Deferred Tax Assets and Liabilities (Continued) As of December 30, 2022, the Company had U.S. net operating loss (“NOL”) carryforwards consisting of the following (in thousands):
|  | 2022 |  |  | Expiration Date
Pre-2018 federal NOL carryforwards |  | $ | 77,085 |  |  | will begin to expire in 2023
Post-2018 federal NOL carryforwards |  |  | 64,456 |  |  | indefinite
State NOL carryforwards |  |  | 56,314 |  |  | will begin to expire in 2023
As of December 30, 2022, the Company had U.S. tax credit carryforwards consisting of the following (in thousands):
|  | 2022 |  |  | Expiration Date
Federal research tax credit carryforwards |  | $ | 380 |  |  | will begin to expire in 2030
State research tax credit carryforwards |  |  | 785 |  |  | indefinite
Federal foreign tax credit carryforwards |  |  | 2,013 |  |  | will begin to expire in 2028
The Company files income tax returns in the U.S. various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The following tax years remain subject to examination:
Significant jurisdictions |  | Open Years
U.S. Federal |  | 2019 – 2021
U.S. States |  | 2018 – 2021
Foreign |  | 2018 – 2021
In various jurisdictions, years prior to 2019 remain open solely for the purposes of examination of the Company’s NOL and credit carryforwards. Tax Holiday The Company operates under a tax holiday in Switzerland, which is effective through 2024, and it may be extended through 2029 if certain additional requirements are satisfied. The tax holiday is conditional upon our meeting certain employment and investment thresholds. The impact of these tax holidays is as follows (in thousands, except per share amounts):
|  | Years Ended |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Tax impact related to tax holidays |  | $ | 7,394 |  |  | $ | 4,887 |  |  | $ | 2,637 |
Impact of tax holidays on diluted earnings per share |  | $ | 0.14 |  |  | $ | 0.10 |  |  | $ | 0.05 |
Uncertain Tax Benefits The Company does not have any uncertain tax positions as of December 30, 2022. The Company does not expect any significant changes in its uncertain tax positions within 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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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