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v3.22.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income Before Income Taxes | Income (loss) before income taxes consisted of the following:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (In thousands) |
Domestic |  | $ | (33,082 | ) |  | $ | (135,403 | ) |  | $ | (76,056 | )
Foreign |  |  | 39,852 |  |  |  | 10,353 |  |  |  | 14,007 |
Total |  | $ | 6,770 |  |  | $ | (125,050 | ) |  | $ | (62,049 | )
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | (8,632 | ) |  | $ | 833 |  |  | $ | (44,752 | )
Foreign |  |  | 8,635 |  |  |  | 10,579 |  |  |  | 8,454 |
Total current |  |  | 3 |  |  |  | 11,412 |  |  |  | (36,298 | )
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (289 | ) |  |  | (56 | ) |  |  | - |
Foreign |  |  | 6,613 |  |  |  | (8,410 | ) |  |  | 5,017 |
Total deferred |  |  | 6,324 |  |  |  | (8,466 | ) |  |  | 5,017 |
Total |  | $ | 6,327 |  |  | $ | 2,946 |  |  | $ | (31,281 | )
Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate | The difference between the effective income tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Federal income tax statutory rate |  |  | 21.00 | % |  |  | 21.00 | % |  |  | 21.00 | %
CARES Act NOL rate differential (2019 and 2020) |  |  | - |  |  |  | - |  |  |  | 32.60 |
Change in withholding tax reserve |  |  | (3.14 | ) |  |  | 0.79 |  |  |  | (5.15 | )
Foreign income tax rate differential |  |  | 21.89 |  |  |  | - |  |  |  | (1.03 | )
Foreign development tax incentive |  |  | 8.56 |  |  |  | (0.24 | ) |  |  | (0.38 | )
Nondeductible goodwill impairment |  |  | - |  |  |  | - |  |  |  | (2.42 | )
Exempt income |  |  | (3.16 | ) |  |  | 0.54 |  |  |  | 1.25 |
Foreign taxes and inclusions (net of FTC) |  |  | 57.41 |  |  |  | (1.15 | ) |  |  | (9.26 | )
Nondeductible expenses |  |  | 26.90 |  |  |  | (2.82 | ) |  |  | (5.35 | )
Manufacturing benefit |  |  | - |  |  |  | - |  |  |  | (7.32 | )
Change in valuation allowance |  |  | 234.01 |  |  |  | (21.87 | ) |  |  | 28.26 |
Changes to prior year accruals |  |  | 26.09 |  |  |  | 0.23 |  |  |  | (3.15 | )
Deferred tax rate change |  |  | 0.53 |  |  |  | 0.11 |  |  |  | (0.10 | )
Change in uncertain tax positions |  |  | (292.09 | ) |  |  | (0.19 | ) |  |  | (0.83 | )
Interest on net equity |  |  | - |  |  |  | 0.41 |  |  |  | - |
General business credits |  |  | (9.66 | ) |  |  | 1.31 |  |  |  | 2.32 |
Branch income |  |  | 6.90 |  |  |  | (0.29 | ) |  |  | (0.31 | )
Other |  |  | (1.78 | ) |  |  | (0.19 | ) |  |  | 0.28 |
Effective tax rate |  |  | 93.46 | % |  |  | -2.36 | % |  |  | 50.41 | %
Components of Net Deferred Tax Assets (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 net deferred tax assets (liabilities) are as follows:
|  | As of December 31, |
|  | 2022 |  |  | 2021 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |
Foreign tax credit carryforward |  | $ | 17,577 |  |  | $ | 9,190 |
General business credit carryforward |  |  | 7,053 |  |  |  | 3,853 |
Inventory |  |  | 9,564 |  |  |  | 22,178 |
Net operating losses |  |  | 32,278 |  |  |  | 21,348 |
Allowance for doubtful accounts |  |  | 970 |  |  |  | 1,043 |
Reserve for accrued liabilities |  |  | 2,769 |  |  |  | 3,161 |
Stock options and awards |  |  | 904 |  |  |  | 868 |
Unrealized gain/loss |  |  | 810 |  |  |  | 1,217 |
Disallowed interest carryforward |  |  | 2,662 |  |  |  | 2,071 |
Capitalized R&D costs |  |  | 3,282 |  |  |  | - |
Other |  |  | 820 |  |  |  | 221 |
Total deferred tax assets |  |  | 78,689 |  |  |  | 65,150 |
Valuation allowance |  |  | (59,952 | ) |  |  | (44,235 | )
Deferred tax liabilities: |  |  |  |  |  |
Property, plant and equipment |  |  | (7,652 | ) |  |  | (7,233 | )
Goodwill & Intangibles |  |  | (1,519 | ) |  |  | (1,796 | )
Deferred revenue |  |  | (2,728 | ) |  |  | (1,258 | )
Reserve for unremitted earnings |  |  | (2,244 | ) |  |  | (2,586 | )
Other |  |  | (3,862 | ) |  |  | (586 | )
Total deferred tax liability |  |  | (18,005 | ) |  |  | (13,459 | )
Net deferred tax asset |  | $ | 732 |  |  | $ | 7,456 |
Summary of Operating Loss Carryforwards | Tax operating loss carryforwards totaled $150.4 million (gross) at December 31, 2022. These operating losses will expire as shown in the table below.
| Tax operating losses |  |  | Expiration
| (in thousands) |  |  |
| $ | 2,176 |  |  | 2022-2027
|  | 1,449 |  |  | 2028-2034
|  | 1,797 |  |  | 2035-2040
|  | 144,939 |  |  | Indefinite
| $ | 150,361 |  |  |
Schedule of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (In thousands) |
Balance at beginning of year |  | $ | 18,618 |  |  | $ | 18,665 |  |  | $ | 18,665 |
Additions for tax positions related to the current year |  |  | 482 |  |  |  | 3 |  |  |  | 3 |
Reductions for tax positions related to the prior year |  |  | (18,469 | ) |  |  | (50 | ) |  |  | (3 | )
Balance at end of year |  | $ | 631 |  |  | $ | 18,618 |  |  | $ | 18,665 |

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