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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,
						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, Arnold, 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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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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