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Income Taxes (Tables) | 12 Months Ended
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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,
|  | 2024 |  | 2023 |  | 2022
(in thousands) |  | (As Restated) |  | (As Restated) |  | (As Restated)
Domestic (including U.S. exports) |  | $ | (358,855) |  |  | $ | (304,300) |  |  | $ | (151,022) |
Foreign subsidiaries |  | 49,645 |  |  | 37,847 |  |  | 37,086 |
|  | $ | (309,210) |  |  | $ | (266,453) |  |  | $ | (113,936) |
Components of the Company's Income Tax Provision (Benefit) | Components of the Company’s income tax provision are as follows:
|  | Year ended December 31,
|  | 2024 |  | 2023 |  | 2022
(in thousands) |  | (As Restated) |  | (As Restated) |  | (As Restated)
Current taxes |  |  |  |  |  |
Federal |  | $ | 15,141 |  |  | $ | 8,973 |  |  | $ | 12,871 |
State |  | 3,215 |  |  | 2,911 |  |  | 2,125 |
Foreign |  | 14,374 |  |  | 11,318 |  |  | 10,961 |
Total current taxes |  | 32,730 |  |  | 23,202 |  |  | 25,957 |
Deferred taxes: |  |  |  |  |  |
Federal |  | (13,647) |  |  | (16,776) |  |  | 3,178 |
State |  | (538) |  |  | 1,622 |  |  | 2,010 |
Foreign |  | 67 |  |  | 150 |  |  | (1,652) |
Total deferred taxes |  | (14,118) |  |  | (15,004) |  |  | 3,536 |
Total tax provision |  | $ | 18,612 |  |  | $ | 8,198 |  |  | $ | 29,493 |
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, 2023 and 2022 are as follows:
| December 31,
| 2024 |  | 2023 |  | 2022
(in thousands) | (As Restated) |  | (As Restated) |  | (As Restated)
Deferred tax assets: |  |  |  |  |
Tax credits | $ | 3,411 |  |  | $ | 5,023 |  |  | $ | 6,179 |
Accounts receivable and allowances | 1,063 |  |  | 1,093 |  |  | 1,577 |
Net operating loss carryforwards | 37,725 |  |  | 20,041 |  |  | 28,090 |
Accrued expenses | 20,374 |  |  | 17,007 |  |  | 13,164 |
Interest expense limitation carryforwards | 55,778 |  |  | 29,445 |  |  | 10,488 |
Lease liabilities | 50,123 |  |  | 46,231 |  |  | 38,614 |
Inventory | 10,056 |  |  | 8,257 |  |  | 9,068 |
Stock based compensation | 6,068 |  |  | 4,386 |  |  | 4,747 |
Capitalized research & development expenses | 9,474 |  |  | 4,245 |  |  | 2,474 |
Capital loss on sale of Crosman | 11,260 |  |  | — |  |  | — |
Lugano other expense (2) | 78,076 |  |  | 43,104 |  |  | 21,640 |
Other | 1,759 |  |  | 3,806 |  |  | 3,401 |
Total deferred tax assets | $ | 285,167 |  |  | $ | 182,638 |  |  | $ | 139,442 |
Valuation allowance (1) | (181,962) |  |  | (84,334) |  |  | (50,149) |
Net deferred tax assets | $ | 103,205 |  |  | $ | 98,304 |  |  | $ | 89,293 |
Deferred tax liabilities: |  |  |  |  |
Intangible assets | $ | (143,105) |  |  | $ | (136,623) |  |  | $ | (150,148) |
Property and equipment | (22,661) |  |  | (23,832) |  |  | (23,533) |
Repatriation of foreign earnings | (38) |  |  | (38) |  |  | (38) |
Prepaid and other expenses | (1,256) |  |  | (842) |  |  | (865) |
Right of use assets | (44,236) |  |  | (40,233) |  |  | (33,766) |
Total deferred tax liabilities | $ | (211,296) |  |  | $ | (201,568) |  |  | $ | (208,350) |
Total net deferred tax liability | $ | (108,091) |  |  | $ | (103,264) |  |  | $ | (119,057) |
(1)Primarily relates to the Trust and 5.11, Arn old, Lugano and Velocity operating segments. (2) Lugano other expense represents losses recognized at Lugano in the years ending December 31, 2024, 2023 and 2022 which do not meet the requirements for deduction under ASC 740 - Income taxes, until the year ended December 31, 2025.
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
| (As Restated) |  | (As Restated) |  | (As Restated)
United States Federal Statutory Rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes (net of Federal benefits) | 3.1 |  |  | 1.6 |  |  | 2.3 |
Foreign income taxes | (1.3) |  |  | (1.5) |  |  | (1.9) |
Impact of subsidiary employee stock options | (0.2) |  |  | 1.3 |  |  | (0.1) |
Non-deductible acquisition costs | (0.2) |  |  | — |  |  | (0.4) |
Impairment expense | (0.5) |  |  | (5.9) |  |  | (4.8) |
Non-recognition of various carryforwards at subsidiaries | (28.6) |  |  | (18.2) |  |  | (37.3) |
United States tax on foreign income | 0.4 |  |  | (0.8) |  |  | (0.6) |
Dividend (net of dividend received deduction) | 0.3 |  |  | (3.3) |  |  | (2.8) |
Utilization of tax credits | 1.6 |  |  | 2.4 |  |  | 6.4 |
Tax effect – loss on sale of Crosman | (1.7) |  |  | — |  |  | — |
Effect of classification of assets held for sale | — |  |  | — |  |  | (7.5) |
Other | 0.1 |  |  | 0.3 |  |  | (0.2) |
Effective income tax rate | (6.0) | % |  | (3.1) | % |  | (25.9) | %
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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