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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2024
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 | 2024 |  | 2023 |  | 2022
United States operations | $ | (172,273) |  |  | $ | (31,649) |  |  | $ | 92,642 |
Foreign operations | 154,036 |  |  | 112,718 |  |  | 121,252 |
Total | $ | (18,237) |  |  | $ | 81,069 |  |  | $ | 213,894 |
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,
| 2024 |  | 2023 |  | 2022
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in income taxes resulting from: |  |  |  |  |
State income taxes, net of federal tax benefit | 15.3 | % |  | 2.9 | % |  | 0.1 | %
Benefit derived from foreign operations | 22.4 | % |  | (17.2) | % |  | (1.6) | %
Nondeductible meals and entertainment | (5.0) | % |  | 1.1 | % |  | 0.1 | %
Intercompany profit in inventory | 4.2 | % |  | 3.3 | % |  | 0.3 | %
Research and development credit | 24.1 | % |  | (5.7) | % |  | (1.4) | %
Nondeductible executive compensation & stock compensation shortfall | (19.7) | % |  | 2.3 | % |  | (0.6) | %
Transaction and deal related costs | (4.1) | % |  | 3.3 | % |  | (1.8) | %
Changes in valuation allowances | (6.0) | % |  | 4.9 | % |  | — | %
Return to provision | 10.1 | % |  | (0.8) | % |  | (0.5) | %
Other | (0.4) | % |  | 1.3 | % |  | — | %
Effective tax rate | 61.9 | % |  | 16.4 | % |  | 15.6 | %
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following:
| Years Ended December 31,
Dollars in thousands | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Federal | $ | (257) |  |  | $ | 10,973 |  |  | $ | 24,201 |
State | 1,330 |  |  | 2,851 |  |  | 3,835 |
Foreign | 8,365 |  |  | 11,389 |  |  | 9,893 |
Total current | $ | 9,438 |  |  | $ | 25,213 |  |  | $ | 37,929 |
Deferred: |  |  |  |  |
Federal | (27,148) |  |  | (19,060) |  |  | (11,591) |
State | (4,093) |  |  | 93 |  |  | (2,316) |
Foreign | 10,510 |  |  | 7,082 |  |  | 9,322 |
Total deferred | $ | (20,731) |  |  | $ | (11,885) |  |  | $ | (4,585) |
Provision for income taxes | $ | (11,293) |  |  | $ | 13,328 |  |  | $ | 33,344 |
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 | 2024 |  | 2023
Assets: |  |  |
Doubtful accounts | $ | 3,370 |  |  | $ | 2,581 |
Inventory related items | 34,731 |  |  | 41,466 |
Tax credits | 17,922 |  |  | 18,859 |
Accrued vacation | 2,447 |  |  | 2,184 |
Accrued bonus | 5,279 |  |  | 4,259 |
Stock compensation | 8,343 |  |  | 9,117 |
Deferred revenue | 4,206 |  |  | 1,849 |
Net operating loss carryforwards | 27,370 |  |  | 28,799 |
Capitalization of research and development expenses | 68,311 |  |  | 61,138 |
Unrealized foreign exchange gain | 8,655 |  |  | 13,907 |
Charitable contributions carryforward | 212 |  |  | 206 |
Leases and Other | 59,339 |  |  | 55,271 |
Total deferred tax assets | 240,185 |  |  | 239,636 |
Less valuation allowance | (15,504) |  |  | (12,486) |
Deferred tax assets after valuation allowance | $ | 224,681 |  |  | $ | 227,150 |
Liabilities: |  |  |
Intangible and fixed assets | (218,125) |  |  | (168,229) |
Unrealized foreign exchange loss | (11,280) |  |  | (10,024) |
Leases and Other | (21,186) |  |  | (38,134) |
Total deferred tax liabilities | $ | (250,591) |  |  | $ | (216,387) |
Total net deferred tax (liabilities) assets | $ | (25,910) |  |  | $ | 10,763 |
Summary of Valuation Allowance | The valuation allowance at December 31, 2024 increased by $3.0 million, as compared to 2023, primarily driven by a $1.1 million increase related to the expiring Swiss federal tax credit. The valuation allowance for 2023 had increased by $2.8 million, as compared to 2022, primarily driven by the newly recognized Swiss tax credit.
| 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, 2024 |  |  |  |  |  |  |  |  |
Deferred tax assets valuation allowance | 17,823 |  |  | 5,330 |  |  | (429) |  |  | (367) |  |  | 22,357 |
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 |
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 | 2024 |  | 2023 |  | 2022
| (In thousands)
Balance, beginning of year | $ | 812 |  |  | $ | 713 |  |  | $ | 676 |
Gross increases: |  |  |  |  |
Current year tax positions | — |  |  | — |  |  | 37 |
Prior years' tax positions | 35 |  |  | 372 |  |  | — |
Lapse of statute | (21) |  |  | (273) |  |  | — |
Balance, end of year | $ | 826 |  |  | $ | 812 |  |  | $ | 713 |

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