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INCOME TAX PROVISION (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income before income taxes | Income before income taxes was comprised of the following for the years ended December 31:
(in thousands) |  | 2023 |  | 2022 |  | 2021
U.S. |  | $ | (7,636) |  |  | $ | 51,640 |  |  | $ | 62,361 |
Foreign |  | 47,435 |  |  | 32,738 |  |  | 31,442 |
Income before income taxes |  | $ | 39,799 |  |  | $ | 84,378 |  |  | $ | 93,803 |
Components of income tax provision | The components of the income tax provision were as follows for the years ended December 31:
(in thousands) |  | 2023 |  | 2022 |  | 2021
Current tax provision: |  |  |  |  |  |
Federal |  | $ | 20,999 |  |  | $ | 27,789 |  |  | $ | (61) |
State |  | 6,331 |  |  | 8,507 |  |  | 2,389 |
Foreign |  | 18,118 |  |  | 11,081 |  |  | 10,945 |
Total current tax provision |  | 45,448 |  |  | 47,377 |  |  | 13,273 |
Deferred tax provision: |  |  |  |  |  |
Federal |  | (20,357) |  |  | (21,368) |  |  | 15,889 |
State |  | (4,389) |  |  | (5,710) |  |  | 1,958 |
Foreign |  | (7,130) |  |  | (1,451) |  |  | (89) |
Total deferred tax provision |  | (31,876) |  |  | (28,529) |  |  | 17,758 |
Income tax provision |  | $ | 13,572 |  |  | $ | 18,848 |  |  | $ | 31,031 |
Effective tax rate reconciliation | The effective tax rate on pretax income reconciles to the U.S. federal statutory tax rate for the years ended December 31 as follows:
|  | 2023 |  | 2022 |  | 2021
Income tax at federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Change in valuation allowances |  | 17.5 | % |  | 7.2 | % |  | 0.1 | %
Tax impact of share-based compensation |  | 6.7 | % |  | 3.2 | % |  | 0.9 | %
Tax on repatriation of foreign earnings |  | 6.2 | % |  | 2.2 | % |  | 4.9 | %
Foreign tax rate differences |  | 5.7 | % |  | 1.9 | % |  | 1.7 | %
Non-deductible executive compensation |  | 4.1 | % |  | 2.2 | % |  | 1.7 | %
Return to provision adjustments |  | 2.0 | % |  | (1.9 | %) |  | — |
State income tax expense, net of federal income tax benefit |  | 2.0 | % |  | 2.7 | % |  | 2.4 | %
Change in state deferred income tax rates |  | 1.7 | % |  | 0.3 | % |  | 0.1 | %
Non-deductible acquisition costs |  | 0.2 | % |  | 0.1 | % |  | 1.5 | %
Business exits (Note 6) |  | (30.2 | %) |  | (15.8 | %) |  | — |
Research and development tax credit |  | (3.0 | %) |  | (1.2 | %) |  | (0.9 | %)
Other |  | 0.2 | % |  | 0.4 | % |  | (0.3 | %)
Effective tax rate |  | 34.1 | % |  | 22.3 | % |  | 33.1 | %
Rollforward of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties and the federal benefit of deductible state income tax, was as follows:
(in thousands) |  | 2023 |  | 2022 |  | 2021
Balance, beginning of year |  | $ | 2,635 |  |  | $ | 2,551 |  |  | $ | 3,361 |
Additions for tax positions of current year |  | 249 |  |  | 250 |  |  | 169 |
Additions for tax positions of prior years |  | 91 |  |  | 270 |  |  | 8 |
Reductions for tax positions of prior years |  | — |  |  | (45) |  |  | (673) |
Settlements |  | (303) |  |  | — |  |  | — |
Lapse of statutes of limitations |  | (282) |  |  | (391) |  |  | (314) |
Balance, end of year |  | $ | 2,390 |  |  | $ | 2,635 |  |  | $ | 2,551 |
Deferred tax assets and liabilities | Tax-effected temporary differences that gave rise to deferred tax assets and liabilities as of December 31 were as follows:
|  | 2023 |  | 2022
(in thousands) |  | Deferred tax assets |  | Deferred tax liabilities |  | Deferred tax assets |  | Deferred tax liabilities
Goodwill |  | $ | — |  |  | $ | 40,572 |  |  | $ | — |  |  | $ | 30,848 |
Employee benefit plans |  | — |  |  | 14,482 |  |  | — |  |  | 11,009 |
Cloud computing arrangements |  | — |  |  | 10,337 |  |  | — |  |  | 13,969 |
Revenue recognition |  | — |  |  | 7,187 |  |  | — |  |  | 7,312 |
Prepaid assets |  | — |  |  | 5,385 |  |  | — |  |  | 5,474 |
Property, plant and equipment |  | — |  |  | 4,529 |  |  | 3,139 |  |  | — |
Acquisition costs |  | — |  |  | 1,604 |  |  | — |  |  | 1,691 |
Operating leases |  | 20,078 |  |  | 15,923 |  |  | 16,681 |  |  | 12,387 |
Deductible interest carryforward |  | 34,038 |  |  | — |  |  | 16,403 |  |  | — |
Net operating loss, tax credit and capital loss carryforwards |  | 22,639 |  |  | — |  |  | 16,720 |  |  | — |
Reserves and accruals |  | 9,522 |  |  | — |  |  | 6,935 |  |  | — |
Gain on payroll and human resources business exit (Note 6) |  | 6,100 |  |  | — |  |  | — |  |  | — |
Intangible assets |  | 4,510 |  |  | — |  |  | — |  |  | 16,901 |
Inventories |  | 2,804 |  |  | — |  |  | 2,018 |  |  | — |
Deferred revenue |  | 1,406 |  |  | — |  |  | 2,951 |  |  | — |
All other |  | 670 |  |  | 719 |  |  | 954 |  |  | 1,768 |
Total deferred taxes |  | 101,767 |  |  | 100,738 |  |  | 65,801 |  |  | 101,359 |
Valuation allowances |  | (14,984) |  |  | — |  |  | (7,996) |  |  | — |
Net deferred taxes |  | $ | 86,783 |  |  | $ | 100,738 |  |  | $ | 57,805 |  |  | $ | 101,359 |
Rollforward of deferred income tax valuation allowances | Changes in our valuation allowances for the years ended December 31 were as follows:
(in thousands) |  | 2023 |  | 2022 |  | 2021
Balance, beginning of year |  | $ | (7,996) |  |  | $ | (10,993) |  |  | $ | (11,453) |
Expense from change in allowances |  | (6,979) |  |  | (6,086) |  |  | (65) |
Sale of business (Note 6) |  | — |  |  | 8,745 |  |  | — |
Foreign currency translation |  | (9) |  |  | 338 |  |  | 525 |
Balance, end of year |  | $ | (14,984) |  |  | $ | (7,996) |  |  | $ | (10,993) |

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