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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Taxes [Abstract] |
Income Taxes | 19. Income Taxes The income tax provision (benefit) consists of the following (in thousands):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Domestic |  | $ | 15,422 |  |  | $ | 16,182 |  |  | $ | 26,528 |
Foreign |  |  | 9,224 |  |  |  | 8,669 |  |  |  | 5,851 |
Total current |  |  | 24,646 |  |  |  | 24,851 |  |  |  | 32,379 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | (5,769 | ) |  |  | 1,102 |  |  |  | (1,161 | )
Foreign |  |  | (509 | ) |  |  | (747 | ) |  |  | (174 | )
Total deferred |  |  | (6,278 | ) |  |  | 355 |  |  |  | (1,335 | )
Total income tax provision |  | $ | 18,368 |  |  | $ | 25,206 |  |  | $ | 31,044 |
Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
U.S. Federal income tax rate of 21% |  | $ | 17,160 |  |  | $ | 20,650 |  |  | $ | 27,398 |
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | 2,086 |  |  |  | 3,118 |  |  |  | 4,579 |
Change in valuation allowance |  |  | 674 |  |  |  | 1,068 |  |  |  | 466 |
Income tax (benefit) attributable to foreign income |  |  | 377 |  |  |  | (53 | ) |  |  | (122 | )
Other non-deductible items, net |  |  | (1,929 | ) |  |  | 423 |  |  |  | (1,277 | )
Provision for income taxes |  | $ | 18,368 |  |  | $ | 25,206 |  |  | $ | 31,044 |
The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Inventories |  | $ | 10,493 |  |  | $ | 11,604 |
Allowance for customer returns |  |  | 13,083 |  |  |  | 14,506 |
Accrued asbestos liabilities |  |  | 20,758 |  |  |  | 17,208 |
Accrued salaries and benefits |  |  | 11,816 |  |  |  | 12,048 |
Tax credit and NOL carryforwards |  |  | 5,968 |  |  |  | 5,103 |
Allowance for expected credit losses |  |  | 3,567 |  |  |  | 2,965 |
Other |  |  | 17 |  |  |  | 215 |
|  |  | 65,702 |  |  |  | 63,649 |
Valuation allowance |  |  | (3,830 | ) |  |  | (3,155 | )
Total deferred tax assets |  |  | 61,872 |  |  |  | 60,494 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangible assets acquired, net of amortization |  |  | 12,668 |  |  |  | 13,292 |
Depreciation |  |  | 7,597 |  |  |  | 8,715 |
Interest rate swap agreement |  |  | 990 |  |  |  | 1,299 |
Other |  |  | 84 |  |  |  | 3,530 |
Total deferred tax liabilities |  |  | 21,339 |  |  |  | 26,836 |
Net deferred tax assets |  | $ | 40,533 |  |  | $ | 33,658 |
In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient taxable income in those periods in which temporary differences become deductible and/or net operating loss carryforwards can be utilized. We consider the level of historical taxable income, scheduled reversal of temporary differences, carryback and carryforward periods, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. We also consider cumulative losses in recent years as well as the impact of one-time events in assessing our pre-tax earnings. Assumptions regarding future taxable income require significant judgment. Our assumptions are consistent with estimates and plans used to manage our business. The valuation allowance of $3.8 million as of December 31, 2023 is intended to provide for uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers. Based on these considerations, we believe it is more likely than not that we would realize the benefit of the net deferred tax asset of $40.5 million as of December 31, 2023, which is net of the remaining valuation allowance. At December 31, 2023, we have foreign tax credit carryforwards of approximately $3.8 million that will expire in varying amounts by 2032. As related to the taxation of our foreign subsidiaries, we aggregate our foreign earnings and profits, and utilize allowable deductions and available foreign tax credits in computing our U.S. tax. Notwithstanding the U.S. taxation of these amounts, we intend to continue to invest most, or all, of these earnings indefinitely outside of the U.S., and do not expect to incur any significant additional taxes related to such amounts. In accordance with generally accepted accounting practices, we recognize in our financial statements only those tax positions that meet the more-likely-than-not recognition threshold. We establish tax reserves for uncertain tax positions that do not meet this threshold. During the years ended December 31, 2023, 2022 and 2021, we did not establish a liability for uncertain tax positions. We are subject to taxation in the U.S. and various state, local and foreign jurisdictions. As of December 31, 2023, the Company is no longer subject to U.S. Federal tax examinations for years before 2020. We remain subject to examination by state and local tax authorities for tax years 2019 through 2022. Foreign jurisdictions have statutes of limitations generally ranging from 2 to 6 years. Years still open to examination by foreign tax authorities in major jurisdictions include Canada (2019 onward), Hong Kong (2018 onward), China (2021 onward), Mexico (2019 onward), Poland (2018 onward), Hungary (2018 onward), U.K. (2017 onward) and Germany (2019 onward). We do not presently anticipate that our unrecognized tax benefits will significantly increase or decrease over the next 12 months; however, actual developments in this area could differ from those currently expected.

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- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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