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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Components of the Company's income (loss) before taxes are as follows:

						Year ended December 31,
(in thousands)						2024						2023						2022
Domestic (including U.S. exports)						$	41,665					$	(59,397)					$	20,495
Foreign subsidiaries						49,645						37,208						37,086
						$	91,310					$	(22,189)					$	57,581

Components of the Company's Income Tax Provision (Benefit)

Components of the Company’s income tax provision are as follows:

						Year ended December 31,
(in thousands)						2024						2023						2022
Current taxes
Federal						$	43,115					$	25,713					$	21,744
State						9,402						5,407						5,639
Foreign						14,374						11,318						10,961
Total current taxes						66,891						42,438						38,344
Deferred taxes:
Federal						(16,615)						(19,151)						1,841
State						(1,331)						(798)						2,834
Foreign						67						150						(1,652)
Total deferred taxes						(17,879)						(19,799)						3,023
Total tax provision						$	49,012					$	22,639					$	41,367

Summary of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that have resulted in the creation of deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023 are as follows:

			December 31,
(in thousands)			2024						2023
Deferred tax assets:
Tax credits			$	3,411					$	5,023
Accounts receivable and allowances			1,063						1,093
Net operating loss carryforwards			14,662						9,803
Accrued expenses			8,133						6,420
Interest expense limitation carryforwards			27,095						16,776
Lease liabilities			49,988						46,167
Inventory			10,911						8,818
Stock based compensation			6,050						4,380
Capitalized research & development expenses			9,474						4,245
Capital loss on sale of Crosman			11,260						—
Other			1,866						3,568
Total deferred tax assets			$	143,913					$	106,293
Valuation allowance (1)			(36,599)						(6,816)
Net deferred tax assets			$	107,314					$	99,477
Deferred tax liabilities:
Intangible assets			$	(159,174)					$	(154,025)
Property and equipment			(22,672)						(23,276)
Repatriation of foreign earnings			(38)						(38)
Prepaid and other expenses			(1,256)						(842)
Right of use assets			(44,122)						(40,178)
Total deferred tax liabilities			$	(227,262)					$	(218,359)
Total net deferred tax liability			$	(119,948)					$	(118,882)

(1)Primarily relates to the Trust and 5.11, Arnold and Velocity operating segments.

Reconciliation Between Federal Statutory Rate and Effective Income Tax Rate

The reconciliation between the Federal Statutory Rate and the effective income tax rate for 2024, 2023 and 2022 are as follows:

			Year ended December 31,
			2024						2023						2022
United States Federal Statutory Rate			21.0		%				21.0		%				21.0		%
State income taxes (net of Federal benefits)			5.6						(14.3)						7.7
Foreign income taxes			4.4						(19.3)						3.8
Impact of subsidiary employee stock options			0.5						16.0						0.2
Non-deductible acquisition costs			0.5						0.1						0.9
Impairment expense			1.6						(70.7)						—
Non-recognition of various carryforwards at subsidiaries			22.4						(6.7)						27.6
United States tax on foreign income			(1.9)						(1.2)						0.6
Dividend (net of dividend received deduction)			(0.8)						(42.1)						5.5
Utilization of tax credits			(5.4)						20.0						(13.0)
Tax effect – loss on sale of Crosman			5.7						—						—
Effect of classification of assets held for sale			—						—						14.9
Other			0.1						(4.8)						2.6
Effective income tax rate			53.7		%				(102.0)		%				71.8		%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the amount of unrecognized tax benefits for 2024, 2023 and 2022 are as follows (in thousands):

Balance at January 1, 2022			$	1,254
Additions for current years’ tax positions			91
Additions for prior years’ tax positions			15
Reductions for prior years’ tax positions			(71)
Reductions for expiration of statute of limitations			$	(73)
Balance at December 31, 2022			$	1,216
Additions for current years’ tax positions			28,325
Additions for prior years’ tax positions			33
Reductions for prior years' tax positions			(184)
Reductions for expiration of statute of limitations			(68)
Balance at December 31, 2023			$	29,322
Additions for current years’ tax positions			7,802
Additions for prior years’ tax positions			—
Reductions for prior years' tax positions			(25)
Reductions for expiration of statute of limitations			(73)
Balance at December 31, 2024			$	37,026

The unrecognized tax benefits are recorded in the consolidated balance sheet in other noncurrent liabilities.

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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