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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2023
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 | 2023 |  | 2022 |  | 2021
United States operations | $ | (31,649) |  |  | $ | 92,642 |  |  | $ | 91,150 |
Foreign operations | 112,718 |  |  | 121,252 |  |  | 123,527 |
Total | $ | 81,069 |  |  | $ | 213,894 |  |  | $ | 214,677 |
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,
| 2023 |  | 2022 |  | 2021
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in income taxes resulting from: |  |  |  |  |
State income taxes, net of federal tax benefit | 2.9 | % |  | 0.1 | % |  | 1.9 | %
Benefit derived from foreign operations | (17.2) | % |  | (1.6) | % |  | (3.3) | %
Nondeductible meals and entertainment | 1.1 | % |  | 0.1 | % |  | 0.1 | %
Intercompany profit in inventory | 3.3 | % |  | 0.3 | % |  | (0.2) | %
Research and development credit | (5.7) | % |  | (1.4) | % |  | (1.2) | %
Nondeductible executive compensation & stock compensation shortfall | 2.3 | % |  | (0.6) | % |  | (0.3) | %
Transaction and deal related costs | 3.3 | % |  | (1.8) | % |  | 0.1 | %
Gain from sale of business - book to tax differences | — | % |  | — | % |  | 3.9 | %
Changes in valuation allowances | 4.9 | % |  | — | % |  | 0.1 | %
Other | 0.5 | % |  | (0.5) | % |  | (0.9) | %
Effective tax rate | 16.4 | % |  | 15.6 | % |  | 21.2 | %
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following:
| Years Ended December 31,
Dollars in thousands | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 10,973 |  |  | $ | 24,201 |  |  | $ | 31,938 |
State | 2,851 |  |  | 3,835 |  |  | 11,377 |
Foreign | 11,389 |  |  | 9,893 |  |  | 5,042 |
Total current | $ | 25,213 |  |  | $ | 37,929 |  |  | $ | 48,357 |
Deferred: |  |  |  |  |
Federal | (19,060) |  |  | (11,591) |  |  | (12,830) |
State | 93 |  |  | (2,316) |  |  | (3,688) |
Foreign | 7,082 |  |  | 9,322 |  |  | 13,763 |
Total deferred | $ | (11,885) |  |  | $ | (4,585) |  |  | $ | (2,755) |
Provision for income taxes | $ | 13,328 |  |  | $ | 33,344 |  |  | $ | 45,602 |
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 | 2023 |  | 2022
Assets: |  |  |
Doubtful accounts | $ | 2,581 |  |  | $ | 2,261 |
Inventory related items | 41,466 |  |  | 31,950 |
Tax credits | 18,859 |  |  | 13,084 |
Accrued vacation | 2,184 |  |  | 2,175 |
Accrued bonus | 4,259 |  |  | 4,944 |
Stock compensation | 9,117 |  |  | 10,175 |
Deferred revenue | 1,849 |  |  | 2,130 |
Net operating loss carryforwards | 28,799 |  |  | 30,707 |
Capitalization of research and development expenses | 61,138 |  |  | 51,542 |
Unrealized foreign exchange gain | 13,907 |  |  | 6,228 |
Charitable contributions carryforward | 206 |  |  | 180 |
Leases and Other | 55,271 |  |  | 55,228 |
Total deferred tax assets | 239,636 |  |  | 210,604 |
Less valuation allowance | (12,486) |  |  | (9,651) |
Deferred tax assets after valuation allowance | $ | 227,150 |  |  | $ | 200,953 |
Liabilities: |  |  |
Intangible and fixed assets | (168,229) |  |  | (166,891) |
Unrealized foreign exchange loss | (10,024) |  |  | (12,991) |
Leases and Other | (38,134) |  |  | (38,415) |
Total deferred tax liabilities | $ | (216,387) |  |  | $ | (218,297) |
Total net deferred tax assets (liabilities) | $ | 10,763 |  |  | $ | (17,344) |
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 | 2023 |  | 2022 |  | 2021
| (In thousands)
Balance, beginning of year | $ | 713 |  |  | $ | 676 |  |  | $ | 702 |
Gross increases: |  |  |  |  |
Current year tax positions | — |  |  | 37 |  |  | — |
Prior years' tax positions | 372 |  |  | — |  |  | — |
Lapse of statute | (273) |  |  | — |  |  | — |
Other | — |  |  | — |  |  | (26) |
Balance, end of year | $ | 812 |  |  | $ | 713 |  |  | $ | 676 |
Summary of Valuation Allowance | The valuation allowance at December 31, 2023 increased by $2.8 million, as compared to 2022, primarily driven by a $3.3 million increase related to the new Swiss tax credit. The valuation allowance for 2022 had remained substantially unchanged, as compared to 2021.
| 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, 2023 |  |  |  |  |  |  |  |  |
Deferred tax assets valuation allowance | 14,672 |  |  | 3,069 |  |  | 26 |  |  | 56 |  |  | 17,823 |
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 |

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