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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) Before Income Taxes | Income before income taxes consisted of the following:
| Years Ended December 31,
Dollars in thousands | 2022 |  | 2021 |  | 2020
United States operations | $ | 92,642 |  |  | $ | 91,150 |  |  | $ | 15,082 |
Foreign operations | 121,252 |  |  | 123,527 |  |  | 78,438 |
Total | $ | 213,894 |  |  | $ | 214,677 |  |  | $ | 93,520 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in income taxes resulting from: |  |  |  |  |
State income taxes, net of federal tax benefit | 0.1 | % |  | 1.9 | % |  | 1.2 | %
Foreign operations | (3.9) | % |  | (4.0) | % |  | (7.9) | %
Excess tax benefits from stock compensation | (2.4) | % |  | (1.2) | % |  | (1.0) | %
Intercompany profit in inventory | 0.3 | % |  | (0.2) | % |  | 1.2 | %
Nondeductible facilitative costs | 0.2 | % |  | 0.3 | % |  | 1.1 | %
Contingent Consideration | (2.0) | % |  | (0.2) | % |  | 0.2 | %
Research and development credit | (1.4) | % |  | (1.2) | % |  | (1.6) | %
Return to provision | (0.5) | % |  | (0.7) | % |  | (2.3) | %
Global intangible low-taxed income ("GILTI") | 2.8 | % |  | 0.7 | % |  | 2.5 | %
Nondeductible executive compensation | 1.8 | % |  | 0.9 | % |  | 2.4 | %
Fair market value step up on intra-entity transfer of intellectual property | — | % |  | — | % |  | (63.3) | %
Gain from sale of business - book to tax differences | — | % |  | 3.9 | % |  | 2.8 | %
Other | (0.4) | % |  | — | % |  | 0.5 | %
Effective tax rate | 15.6 | % |  | 21.2 | % |  | (43.2) | %
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following:
| Years Ended December 31,
Dollars in thousands | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 24,201 |  |  | $ | 31,938 |  |  | $ | 6,184 |
State | 3,835 |  |  | 11,377 |  |  | 5,029 |
Foreign | 9,893 |  |  | 5,042 |  |  | 12,553 |
Total current | $ | 37,929 |  |  | $ | 48,357 |  |  | $ | 23,766 |
Deferred: |  |  |  |  |
Federal | (11,591) |  |  | (12,830) |  |  | (5,079) |
State | (2,316) |  |  | (3,688) |  |  | (1,760) |
Foreign | 9,322 |  |  | 13,763 |  |  | (57,299) |
Total deferred | $ | (4,585) |  |  | $ | (2,755) |  |  | $ | (64,138) |
Provision for income taxes | $ | 33,344 |  |  | $ | 45,602 |  |  | $ | (40,372) |
Schedule of Deferred Tax Assets and Liabilities | The income tax effects of significant temporary differences that give rise to deferred tax assets and liabilities, shown before jurisdictional netting, are presented below:
| December 31,
Dollars in thousands | 2022 |  | 2021
Assets: |  |  |
Doubtful accounts | $ | 2,261 |  |  | $ | 2,029 |
Inventory related items | 31,950 |  |  | 31,841 |
Tax credits | 13,084 |  |  | 13,319 |
Accrued vacation | 2,175 |  |  | 3,042 |
Accrued bonus | 4,944 |  |  | 7,415 |
Stock compensation | 10,175 |  |  | 13,955 |
Deferred revenue | 2,130 |  |  | 1,742 |
Net operating loss carryforwards | 30,707 |  |  | 26,198 |
Capitalization of research and development expenses | 51,542 |  |  | 36,770 |
Unrealized foreign exchange gain | 6,228 |  |  | 12,849 |
Charitable contributions carryforward | 180 |  |  | 206 |
Leases and Other | 39,788 |  |  | 41,371 |
Total deferred tax assets | 195,164 |  |  | 190,737 |
Less valuation allowance | (9,651) |  |  | (9,767) |
Deferred tax assets after valuation allowance | $ | 185,513 |  |  | $ | 180,970 |
Liabilities: |  |  |
Intangible and fixed assets | (166,891) |  |  | (152,150) |
Unrealized foreign exchange loss | (12,991) |  |  | — |
Leases and Other | (22,975) |  |  | (17,658) |
Total deferred tax liabilities | $ | (202,857) |  |  | $ | (169,808) |
Total net deferred tax assets (liabilities) | $ | (17,344) |  |  | $ | 11,162 |
Schedule of Uncertain Tax Benefits Reconciliation | A reconciliation of the beginning and ending amount of uncertain tax benefits is as follows:
| Years Ended December 31,
Dollars in thousands | 2022 |  | 2021 |  | 2020
| (In thousands)
Balance, beginning of year | $ | 676 |  |  | $ | 702 |  |  | $ | 676 |
Gross increases: |  |  |  |  |
Current year tax positions | 37 |  |  | — |  |  | — |
Prior years' tax positions | — |  |  | — |  |  | 26 |
Other | — |  |  | (26) |  |  | — |
Balance, end of year | $ | 713 |  |  | $ | 676 |  |  | $ | 702 |
Summary of Valuation Allowance | The valuation allowance at December 31, 2022 and 2021 primarily remained unchanged from respective prior periods; decreasing by an immaterial amount in both periods.
| Balance at Beginning of Period |  | Charged to Costs and Expenses |  | Other |  | Deductions |  | Balance at End of Period
Description |  |  |  |
Dollars in thousands |  |  |
Year ended December 31, 2022 |  |  |  |  |  |  |  |  |
Deferred tax assets valuation allowance | 15,258 |  |  | (515) |  |  |  |  | (71) |  |  | 14,672 |
Year ended December 31, 2021 |  |  |  |  |  |  |  |  |
Deferred tax assets valuation allowance | 13,825 |  |  | 1,444 |  |  | 89 |  |  | (100) |  |  | 15,258 |
Year ended December 31, 2020 |  |  |  |  |  |  |  |  |
Deferred tax assets valuation allowance | 12,069 |  |  | 1,617 |  |  | — |  |  | 139 |  |  | 13,825 |

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