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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income From Continuing Operations Before Income Taxes | Income from operations before income taxes consisted of the following:
| Year Ended December 31,
(in thousands) | 2023 |  | 2022
United States | $ | (24,949) |  |  | $ | 910 |
Foreign | 22,942 |  |  | 12,027 |
Total | $ | (2,007) |  |  | $ | 12,937 |
Components of Provision (Benefit) for Income Taxes | Provision (benefit) for income taxes from operations consisted of the following:
| Year Ended December 31,
(in thousands) | 2023 |  | 2022
Current income tax expense: |  |  |
U.S. federal | $ | 4,961 |  |  | $ | 4,011 |
U.S. state | 2,388 |  |  | 869 |
Foreign | 7,639 |  |  | 3,057 |
Total | $ | 14,988 |  |  | $ | 7,937 |
Deferred income tax expense (benefit): |  |  |
U.S. federal | $ | (8,101) |  |  | $ | (947) |
U.S. state | 1,232 |  |  | (73) |
Foreign | (1,159) |  |  | (1,386) |
Total | $ | (8,028) |  |  | $ | (2,406) |
Total income tax expense (benefit): |  |  |
U.S. federal | $ | (3,141) |  |  | $ | 3,063 |
U.S. state | 3,620 |  |  | 796 |
Foreign | 6,481 |  |  | 1,672 |
Total | $ | 6,960 |  |  | $ | 5,531 |
Reconciliation Between Effective Income Tax Rate and Statutory Federal Rate | The reconciliation between the effective income tax rates and the statutory federal rates for operations are as follows:
| Year Ended December 31,
| 2023 |  | 2022
Statutory Federal rate | 21.0 | % |  | 21.0 | %
Increase (decrease) resulting from: |  |  |
Change in valuation allowance - current period activity | (380.7) |  |  | 1.3 |
Foreign rate differential | 6.2 |  |  | 4.0 |
Stock compensation | (5.0) |  |  | (0.5) |
Compensation deduction limitation | (7.0) |  |  | — |
State and local taxes, net | 67.1 |  |  | 4.5 |
Life insurance | (3.4) |  |  | — |
Meals & entertainment | (17.3) |  |  | 1.4 |
Change in uncertain tax positions | 18.1 |  |  | (2.9) |
Provision to return differences | (45.3) |  |  | — |
GILTI, Section 78, FDII, and Section 250 | — |  |  | 3.2 |
Transaction costs | — |  |  | 8.3 |
Branch income | (81.6) |  |  | — |
Earn Out Revaluation | — |  |  | 0.8 |
Change in deferred balances | 79.4 |  |  | — |
Other items, net | 1.7 |  |  | 1.7 |
Provision for income taxes | (346.8) | % |  | 42.8 | %
Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities contain the following temporary differences:
| December 31,
(in thousands) | 2023 |  | 2022
Deferred tax assets: |  |  |
Federal & state NOL carryforward | $ | 10,158 |  |  | $ | 8,218 |
Inventory reserve | 8,815 |  |  | 6,990 |
Transaction costs | 673 |  |  | 1,620 |
Stock based compensation | 3,602 |  |  | 2,531 |
Accrued benefits & bonuses | 11,998 |  |  | 7,074 |
Bad debt reserve | 977 |  |  | 496 |
Section 163(j) limitation carryforward | 15,891 |  |  | 7,692 |
ROU liabilities | 18,936 |  |  | 11,947 |
Deferred state income tax | — |  |  | 745 |
Deferred revenue | 77 |  |  | 86 |
Investment in Foreign Subsidiaries | — |  |  | — |
Other | 4,005 |  |  | 2,822 |
Total deferred tax assets | 75,132 |  |  | 50,221 |
Deferred tax liabilities: |  |  |
Intangible assets and goodwill | 44,057 |  |  | 45,951 |
ROU asset | 18,264 |  |  | 11,295 |
Fixed assets | 20,977 |  |  | 15,617 |
Deferred state income tax | 17 |  |  | — |
Other | 1,591 |  |  | 188 |
Total deferred liabilities | 84,906 |  |  | 73,051 |
Net deferred tax liabilities before valuation allowance | (9,774) |  |  | (22,830) |
Valuation allowance | (8,457) |  |  | (815) |
Net deferred tax liabilities | $ | (18,231) |  |  | $ | (23,645) |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| December 31,
(in thousands) | 2023 |  | 2022
Balance at beginning of year | $ | 3,027 |  |  | $ | — |
Additions for tax positions of current year | — |  |  | 191 |
Additions for tax positions of prior years | 503 |  |  | 3,741 |
Reductions for tax positions of prior year | — |  |  | (238) |
Lapse of statute of limitations | (796) |  |  | (667) |
Balance at end of year | $ | 2,734 |  |  | $ | 3,027 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
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