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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The income tax provision (benefit) consists of the following (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Domestic | $ | 19,761 |  |  | $ | 15,422 |  |  | $ | 16,182 |
Foreign | 11,254 |  |  | 9,224 |  |  | 8,669 |
Total current | 31,015 |  |  | 24,646 |  |  | 24,851 |
Deferred: |  |  |  |  |
Domestic | (9,536) |  |  | (5,769) |  |  | 1,102 |
Foreign | (2,094) |  |  | (509) |  |  | (747) |
Total deferred | (11,630) |  |  | (6,278) |  |  | 355 |
Total income tax provision | $ | 19,385 |  |  | $ | 18,368 |  |  | $ | 25,206 |
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,
| 2024 |  | 2023 |  | 2022
U.S. Federal income tax rate of 21% | $ | 15,538 |  |  | $ | 17,160 |  |  | $ | 20,650 |
Increase (decrease) in tax rate resulting from: |  |  |  |  |
State and local income taxes, net of federal income tax benefit | 1,922 |  |  | 2,086 |  |  | 3,118 |
Change in valuation allowance | 770 |  |  | 674 |  |  | 1,068 |
Income tax (benefit) attributable to foreign income | 4,370 |  |  | 377 |  |  | (53) |
Other non-deductible items, net | (3,215) |  |  | (1,929) |  |  | 423 |
Provision for income taxes | $ | 19,385 |  |  | $ | 18,368 |  |  | $ | 25,206 |
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,
| 2024 |  | 2023
Deferred tax assets: |  |  |
Inventories | $ | 9,087 |  |  | $ | 10,493 |
Allowance for customer returns | 17,854 |  |  | 13,083 |
Accrued asbestos liabilities | 24,032 |  |  | 20,758 |
Accrued salaries and benefits | 13,564 |  |  | 11,816 |
Tax credit and net operating loss carryforwards | 5,690 |  |  | 5,968 |
Allowance for expected credit losses | 3,586 |  |  | 3,567 |
Other | 10 |  |  | 17 |
| 73,823 |  |  | 65,702 |
Valuation allowance | (4,849) |  |  | (3,830) |
Total deferred tax assets | 68,974 |  |  | 61,872 |
Deferred tax liabilities: |  |  |
Intangible assets acquired, net of amortization | 43,755 |  |  | 12,668 |
Depreciation | 6,669 |  |  | 7,597 |
Interest rate swap agreement | 1,345 |  |  | 990 |
Other | 4,006 |  |  | 84 |
Total deferred tax liabilities | 55,775 |  |  | 21,339 |
Net deferred tax assets | $ | 13,199 |  |  | $ | 40,533 |
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 $4.8 million as of December 31, 2024 is intended to provide for uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers of $4.6 million that will expire in varying amounts by 2032, and foreign net operating losses of $0.2 million. 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 $13.2 million as of December 31, 2024, which is net of the remaining valuation allowance. 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 of these earnings indefinitely outside of the U.S., and do not expect to incur any significant additional taxes related to such amounts. 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, 2024, 2023 and 2022, 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, 2024, the Company is no longer subject to U.S. Federal tax examinations for years before 2021. We remain subject to examination by state and local tax authorities for tax years 2020 through 2023. 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 (2020 onward), Hong Kong (2019 onward), China (2022 onward), Mexico (2018 onward), Poland (2019 onward), Hungary (2019 onward), Germany (2020 onward), Denmark (2019 onward) and Slovakia (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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