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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 19 — Income Taxes The income tax provisions were calculated based upon the following components of earnings before income tax for the years ended December 31, 2024, 2023 and 2022:
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
(Loss) earnings before income tax: |  |  |  |  |  |  |  |  |
Domestic |  | $ | (54,073 | ) |  | $ | (37,222 | ) |  | $ | (34,211 | )
Foreign |  |  | 156,338 |  |  |  | 92,176 |  |  |  | 72,593 |
Earnings before income tax |  | $ | 102,265 |  |  | $ | 54,954 |  |  | $ | 38,382 |
The components of the provision for income taxes for the years ended December 31, 2024, 2023 and 2022 are summarized as follows:
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current income tax (benefit) expense: |  |  |  |  |  |  |  |  |
Federal |  | $ | (1,181 | ) |  | $ | 3,510 |  |  | $ | 3,006 |
State and local |  |  | 679 |  |  |  | 414 |  |  |  | 650 |
Foreign |  |  | 27,240 |  |  |  | 23,759 |  |  |  | 17,607 |
Total current income tax expense |  |  | 26,738 |  |  |  | 27,683 |  |  |  | 21,263 |
Deferred income tax (benefit) expense: |  |  |  |  |  |  |  |  |
Federal |  |  | (7,944 | ) |  |  | (7,495 | ) |  |  | (5,971 | )
State and local |  |  | 66 |  |  |  | 444 |  |  |  | (213 | )
Foreign |  |  | 18,458 |  |  |  | (6,021 | ) |  |  | (1,138 | )
Total deferred income tax expense (benefit) |  |  | 10,580 |  |  |  | (13,072 | ) |  |  | (7,322 | )
Total income tax expense |  | $ | 37,318 |  |  | $ | 14,611 |  |  | $ | 13,941 |
No income taxes have been provided on indefinitely reinvested earnings of certain foreign subsidiaries at December 31, 2024. In addition, 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 provision, or they will be offset with a 100% dividend received deduction. To the extent dividends are paid within foreign tiered subsidiaries, withholding and income taxes may be incurred upon repatriation through the chain. Taxes of $5,088 have been accrued on undistributed earnings that are not indefinitely reinvested and are primarily related to China, Germany, Ukraine, North Macedonia, Czech Republic and Malta. As of December 31, 2024, taxes have not been provided on $194,777 of undistributed earnings in various subsidiaries as those earnings have been indefinitely invested. If, in the future, these earnings were to be repatriated to foreign affiliates, additional tax provisions would be required. It is not practicable to determine the unrecognized deferred tax liability on these undistributed earnings. There are no other material liabilities for income taxes on the undistributed earnings of foreign subsidiaries, as the Company has concluded that such earnings are either indefinitely reinvested or should not give rise to additional income tax liabilities as a result of the distribution of such earnings. The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following as of December 31, 2024 and 2023:
|  | December 31, |
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Net operating losses |  | $ | 35,966 |  |  | $ | 44,053 |
Intangible assets |  |  | 10,893 |  |  |  | 4,314 |
Research and development credits |  |  | 5,475 |  |  |  | 7,127 |
Property and equipment |  |  | 4,132 |  |  |  | 4,800 |
Valuation reserves and accrued liabilities |  |  | 8,446 |  |  |  | 11,221 |
Capitalized research and development costs |  |  | 28,318 |  |  |  | 23,658 |
Stock compensation |  |  | 2,039 |  |  |  | 3,227 |
Defined benefit obligation |  |  | 1,514 |  |  |  | 1,691 |
Inventory |  |  | 717 |  |  |  | 181 |
Other credits |  |  | — |  |  |  | 8,946 |
Other |  |  | 8,707 |  |  |  | 9,154 |
Total deferred tax asset |  |  | 106,207 |  |  |  | 118,372 |
Valuation allowance |  |  | (25,272 | ) |  |  | (35,888 | )
Deferred tax liabilities: |  |  |  |  |  |
Unrealized foreign currency exchange gains |  | $ | (1,092 | ) |  | $ | — |
Undistributed profits of subsidiary |  |  | (5,016 | ) |  |  | (4,609 | )
Property and equipment |  |  | (10,524 | ) |  |  | (12,627 | )
Intangible assets |  |  | (8,720 | ) |  |  | — |
Other |  |  | (1,383 | ) |  |  | (1,550 | )
Total deferred tax liability |  |  | (26,735 | ) |  |  | (18,786 | )
Net deferred tax asset |  | $ | 54,200 |  |  | $ | 63,698 |
Reconciliations between the statutory Federal income tax rate and the effective rate of income tax expense for the years ended December 31, 2024, 2023 and 2022 are as follows:
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Statutory Federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |
Change in valuation allowance |  |  | (9.0 | )% |  |  | (3.1 | )% |  |  | 6.4 | %
Effect of different tax rates of foreign jurisdictions |  |  | (0.7 | )% |  |  | 0.9 | % |  |  | (4.9 | )%
Tax credits & deductions related to R&D |  |  | (3.7 | )% |  |  | (8.5 | )% |  |  | (10.1 | )%
Goodwill impairment |  |  | — |  |  |  | 4.1 | % |  |  | — |
Non-deductible expenses |  |  | 15.7 | % |  |  | 6.8 | % |  |  | 14.9 | %
Non-deductible expenses related to acquisitions |  |  | — |  |  |  | — |  |  |  | 7.0 | %
Other foreign, state and local taxes |  |  | 2.1 | % |  |  | 3.5 | % |  |  | 0.7 | %
Tax impact of foreign income |  |  | 7.5 | % |  |  | 3.6 | % |  |  | 4.2 | %
Stock option compensation |  |  | 1.0 | % |  |  | — |  |  |  | (3.8 | )%
Audit settlements and statute expirations |  |  | 11.0 | % |  |  | — |  |  |  | — |
Incentive tax rates in foreign jurisdictions |  |  | (5.5 | )% |  |  | (1.9 | )% |  |  | — |
Other |  |  | (2.9 | )% |  |  | 0.2 | % |  |  | 0.9 | %
Effective rate |  |  | 36.5 | % |  |  | 26.6 | % |  |  | 36.3 | %
The Company has Net Operating Loss (“NOL”) carryforwards as follows:
Jurisdiction |  | Amount as of December 31, 2024 |  |  | Years of Expiration
U.S. state income tax |  | $ | 41,396 |  |  | 2025-2043
Foreign |  |  | 199,365 |  |  | Never
As of December 31, 2024, the Company has consolidated deferred tax assets of $106,207 with a valuation allowance of $25,272 principally related to tax net operating losses, credit carryforwards and other deferred tax assets in the U.S. and various foreign jurisdictions, and certain U.S. state income tax attributes. The Company has considered historical pre-tax income or loss and the four sources of income in determining the need for a valuation allowance when the realization of its deferred tax assets are not more likely than not. The four sources of income considered are 1) taxable income in prior carryback years where carryback is allowable, 2) future reversals of existing temporary differences, 3) consideration of reasonable and prudent tax planning strategies, and 4) forecasts of future taxable income, exclusive of reversing temporary differences and carryforwards. In the cases where a valuation allowance has been recorded, the evidence described above did not result in a conclusion that the deferred tax assets are more likely than not. The Company has 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 2025 to 2043. 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 as of December 31, 2024. At December 31, 2024, certain non-U.S. subsidiaries had gross NOL carryforwards totaling $199,365 which have no expiration date. The Company has a valuation allowance recorded of $15,263 recorded against deferred tax assets of $31,441 of the total non-U.S. subsidiaries’ net operating loss carryforwards as of December 31, 2024. The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of December 31, 2024, the Company was no longer subject to U.S. Federal examinations by tax authorities for tax years before 2020 and was no longer subject to foreign examinations by tax authorities for tax years before 2015. The Company currently benefits from incentive tax rates in various non-U.S. jurisdictions with expiration dates from 2025 – 2029. Certain of the Company’s Chinese subsidiaries began to benefit from a reduced corporate income tax rate in 2024 as a result of their High and New Technology Enterprises (“HNTE”) status. For the years ended December 31, 2024, 2023 and 2022, income in foreign jurisdictions with such holidays was $50,372, $8,185, and $2,414, respectively. At December 31, 2024, 2023 and 2022, the Company had total unrecognized tax benefits of $8,266, $5,486 and $6,185, 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, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Balance at beginning of year |  | $ | 5,486 |  |  | $ | 6,185 |  |  | $ | 5,665 |
Additions based on tax position related to current year |  |  | 78 |  |  |  | 87 |  |  |  | 972 |
Additions based on tax position related to prior year |  |  | 4,587 |  |  |  | 347 |  |  |  | 433 |
Reductions from settlements and statute of limitation expiration |  |  | (1,636 | ) |  |  | (1,266 | ) |  | $ | (610 | )
Effect of foreign currency translation |  |  | (249 | ) |  |  | 133 |  |  |  | (275 | )
Balance at end of year |  | $ | 8,266 |  |  | $ | 5,486 |  |  | $ | 6,185 |
The Company classifies income tax-related penalties and net interest as income tax expense. In the years ended December 31, 2024, 2023 and 2022, 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. A reversal of approximately $4,000 is reasonably possible in the next 12 months due to the statute of limitations in various taxing jurisdictions as well as conclusion ongoing tax audits.

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