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Income Taxes
 12 Months Ended
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,
 202420232022
Current:   
Domestic$19,761 $15,422 $16,182 
Foreign11,254 9,224 8,669 
Total current31,015 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,
 202420232022
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 benefit1,922 2,086 3,118 
Change in valuation allowance770 674 1,068 
Income tax (benefit) attributable to foreign income4,370 377 (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,
20242023
Deferred tax assets:  
Inventories$9,087 $10,493 
Allowance for customer returns17,854 13,083 
Accrued asbestos liabilities24,032 20,758 
Accrued salaries and benefits13,564 11,816 
Tax credit and net operating loss carryforwards5,690 5,968 
Allowance for expected credit losses 3,586 3,567 
Other10 17 
73,823 65,702 
Valuation allowance(4,849)(3,830)
Total deferred tax assets68,974 61,872 
Deferred tax liabilities: 
Intangible assets acquired, net of amortization 43,755 12,668 
Depreciation6,669 7,597 
Interest rate swap agreement1,345 990 
Other4,006 84 
Total deferred tax liabilities55,775 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.