XML 39 R25.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Note 18 — Income Taxes The income tax provisions were calculated based upon the following components of earnings before income tax for the years ended December 31, 2022, 2021 and 2020:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Earnings before income tax: |  |  |  |  |  |  |  |  |
Domestic |  | $ | (34,211 | ) |  | $ | (4,547 | ) |  | $ | (11,374 | )
Foreign |  |  | 72,593 |  |  |  | 118,399 |  |  |  | 92,930 |
Earnings before income tax |  | $ | 38,382 |  |  | $ | 113,852 |  |  | $ | 81,556 |
The components of the provision for income taxes for the years ended December 31, 2022, 2021 and 2020 are summarized as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current income tax expense: |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,006 |  |  | $ | 1,944 |  |  | $ | 784 |
State and local |  |  | 650 |  |  |  | 234 |  |  |  | 83 |
Foreign |  |  | 17,607 |  |  |  | 18,390 |  |  |  | 20,150 |
Total current income tax expense |  | $ | 21,263 |  |  |  | 20,568 |  |  |  | 21,017 |
Deferred income tax (benefit) expense: |  |  |  |  |  |  |  |  |
Federal |  |  | (5,971 | ) |  |  | (4,400 | ) |  |  | (2,302 | )
State and local |  |  | (213 | ) |  |  | (91 | ) |  |  | 32 |
Foreign |  |  | (1,138 | ) |  |  | 4,341 |  |  |  | 3,119 |
Total deferred (benefit) income tax expense |  |  | (7,322 | ) |  |  | (150 | ) |  |  | 849 |
Total income tax expense |  | $ | 13,941 |  |  | $ | 20,418 |  |  | $ | 21,866 |
As of December 31, 2022, deferred U.S. income taxes have not been provided on the undistributed earnings of the Company’s foreign subsidiaries since these earnings will not be taxable upon repatriation to the United States. These earnings will be primarily treated as previously taxed income from either the one-time transition tax or global intangible low-taxed income (“GILTI”) provision, or they will be offset with a 100% dividend received deduction. However, the Company continues to provide a deferred tax liability for foreign income and withholding tax that will be incurred with respect to the undistributed foreign earnings that are not indefinitely reinvested. The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following as of December 31, 2022 and 2021:
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Net operating losses |  | $ | 43,296 |  |  | $ | 25,610 |
Intangible assets |  |  | 4,417 |  |  |  | 21,179 |
Research and development credits |  |  | 7,835 |  |  |  | 9,736 |
Property and equipment |  |  | 6,983 |  |  |  | 7,071 |
Valuation reserves and accrued liabilities |  |  | 8,388 |  |  |  | 7,333 |
Capitalized Research and Development Costs |  |  | 19,087 |  |  |  | 9,018 |
Stock compensation |  |  | 3,051 |  |  |  | 3,832 |
Defined benefit obligation |  |  | 1,265 |  |  |  | 1,466 |
Inventory |  |  | 6,762 |  |  |  | 1,914 |
Other credits |  |  | 10,296 |  |  |  | 10,158 |
Other |  |  | 790 |  |  |  | 146 |
Total deferred tax asset |  |  | 112,170 |  |  |  | 97,463 |
Valuation allowance |  |  | (36,671 | ) |  |  | (16,090 | )
Deferred tax liabilities: |  |  |  |  |  |
Unrealized foreign currency exchange gains |  | $ | (2,413 | ) |  | $ | (2,488 | )
Undistributed profits of subsidiary |  |  | (5,981 | ) |  |  | (6,676 | )
Property and equipment |  |  | (15,423 | ) |  |  | (2,420 | )
Other |  |  | (3,056 | ) |  |  | (1,428 | )
Total deferred tax liability |  |  | (26,873 | ) |  |  | (13,012 | )
Net deferred tax asset |  | $ | 48,626 |  |  | $ | 68,361 |
Reconciliations between the statutory Federal income tax rate and the effective rate of income tax expense for the years ended December 31, 2022, 2021 and 2020 are as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory Federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |
Change in valuation allowance |  |  | 6.4 | % |  |  | (1.2 | )% |  |  | (0.4 | )%
Effect of different tax rates of foreign jurisdictions |  |  | (4.9 | )% |  |  | (5.2 | )% |  |  | (4.7 | )%
Tax credits & deductions related to R&D |  |  | (10.1 | )% |  |  | (2.3 | )% |  |  | (3.8 | )%
Non-deductible expenses |  |  | 14.9 | % |  |  | 1.7 | % |  |  | 2.1 | %
Non-deductible expenses related to acquisitions |  |  | 7.0 | % |  |  | 0.0 | % |  |  | 0.0 | %
Other foreign, state and local taxes |  |  | 0.7 | % |  |  | 1.6 | % |  |  | 1.4 | %
Tax impact of foreign income |  |  | 4.2 | % |  |  | 3.6 | % |  |  | 4.9 | %
Stock option compensation |  |  | (3.8 | )% |  |  | (2.0 | )% |  |  | (0.4 | )%
Other |  |  | 0.9 | % |  |  | 0.7 | % |  |  | 6.7 | %
Effective rate |  |  | 36.3 | % |  |  | 17.9 | % |  |  | 26.8 | %
The Company has Net Operating Loss (“NOL”) carryforwards as follows:
Jurisdiction |  | Amount as of December 31, 2022 |  |  | Years of Expiration
U.S. state income tax |  | $ | 54,912 |  |  | 2023-2042
Foreign |  | $ | 320,417 |  |  | Indefinite
We have NOL carryforwards in various states associated with the benefits of the state dividends received reduction and foreign royalty exclusion. The state NOL carryforwards generally expire at various dates from 2023 to 2042. We have concluded that there is not sufficient evidence these NOL carryforwards will be utilized, and thus have not recognized the benefit of these NOL carryforwards. At December 31, 2022, certain non-U.S. subsidiaries had NOL carryforwards totaling $320,417 which have no expiration date. The Company has a valuation allowance recorded against $133,877 of the total non-U.S. subsidiaries’ net operating loss carryforwards as of December 31, 2022. The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of December 31, 2022, the Company was no longer subject to U.S. Federal examinations by tax authorities for tax years before 2019 and was no longer subject to foreign examinations by tax authorities for tax years before 2014. The Company currently benefits from tax holidays in various non-U.S. jurisdictions with expiration dates from 2024 – 2025. The amount of corporate income tax savings realized by the Company as a result of the tax holidays during the current and prior years was immaterial as a result of operating losses previously generated. At December 31, 2022, 2021 and 2020, the Company had total unrecognized tax benefits of $6,185, $5,665 and $4,967, respectively, all of which, if recognized, would affect the effective income tax rates. The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Balance at beginning of year |  | $ | 5,665 |  |  | $ | 4,967 |  |  | $ | 3,795 |
Additions based on tax position related to current year |  |  | 972 |  |  |  | 1,105 |  |  |  | 1,489 |
Additions based on tax position related to prior year |  |  | 433 |  |  |  | 160 |  |  |  | 179 |
Reductions from settlements and statute of limitation expiration |  |  | (610 | ) |  |  | (312 | ) |  | $ | (650 | )
Effect of foreign currency translation |  |  | (275 | ) |  |  | (255 | ) |  |  | 154 |
Balance at end of year |  | $ | 6,185 |  |  | $ | 5,665 |  |  | $ | 4,967 |
The Company classifies income tax-related penalties and net interest as income tax expense. In the years ended December 31, 2022, 2021 and 2020, income tax related interest and penalties were not material. It is reasonably possible that audit settlements, the conclusions of current examinations or the expiration of the statute of limitations in several jurisdictions could impact the Company’s unrecognized tax benefits.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration