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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax expense included in the accompanying consolidated statement of operations represents federal, state and foreign income taxes. The components of (loss) income before income taxes and the provision (benefit) for income taxes consist of the following:
Year ended December 31,202320222021
(Loss) income before income taxes:
Domestic$(29,658)$(11,944)$11,596 
Foreign27,736 1,248 840 
Total (loss) income before income taxes$(1,922)$(10,696)$12,436 
Provision (benefit) for income taxes:
Current:
Federal$219 $435 $— 
State and local(101)747 294 
Foreign7,181 7,288 9,248 
Total current provision$7,299 $8,470 $9,542 
Deferred:
Federal$(2,265)$(3,282)$714 
State and local2 (25)(55)
Foreign(1,775)(1,803)(1,171)
Total deferred benefit(4,038)(5,110)(512)
Total income tax provision$3,261 $3,360 $9,030 
A summary of the differences between the statutory federal income tax rate of 21.0% and the consolidated provision for income taxes is shown below.
Year ended December 31,202320222021
Statutory U.S. federal income tax (benefit) provision$(403)$(2,246)$2,612 
State income taxes, net of federal tax benefit(136)495 942 
Tax credits and incentives(4,886)(3,906)(2,865)
Foreign tax rate differential706 910 730 
Impact of change in enacted tax law5 300 227 
Change in valuation allowance1,817 5,248 5,070 
U.S. tax on foreign earnings4,815 1,376 (347)
Tax impact of unconsolidated subsidiaries— 395 1,828 
Unremitted earnings on foreign subsidiaries— (898)835 
Non-deductible expenses1,338 657 740 
Compensation and benefits306 774 358 
Other(301)255 (1,100)
Provision for income taxes$3,261 $3,360 $9,030 
Significant components of the Company’s deferred tax assets and liabilities were as follows:
As of December 31,20232022
Deferred tax assets:
Inventories$1,678 $1,479 
Employee compensation and benefits2,324 2,078 
Accrued liabilities and reserves6,466 5,862 
Property, plant and equipment3,290 2,794 
Tax loss carryforwards18,129 16,997 
Tax credit carryforwards22,191 20,802 
Capitalized research and development4,345 4,785 
Lease liability2,351 2,817 
Other1,040 1,213 
Gross deferred tax assets61,814 58,827 
Less: Valuation allowance(21,082)(18,496)
Deferred tax assets less valuation allowance40,732 40,331 
Deferred tax liabilities:
Property, plant and equipment(1,271)(2,038)
Intangible assets(8,942)(10,056)
Right-of-use-assets(2,059)(2,595)
Other(5,292)(4,991)
Gross deferred tax liabilities(17,564)(19,680)
Net deferred tax assets$23,168 $20,651 
The balance sheet classification of our net deferred tax asset is shown below:
Year ended December 31,20232022
Long-term deferred tax assets$30,392 $29,149 
Long-term deferred tax liabilities(7,224)(8,498)
Net deferred tax assets$23,168 $20,651 
The Company has recognized deferred taxes related to foreign withholding taxes and the expected foreign currency impact upon repatriation from foreign subsidiaries not considered indefinitely reinvested. At December 31, 2023, the aggregate undistributed earnings of our foreign subsidiaries amounted to $27,211.
Based on the Company’s review of both positive and negative evidence regarding the realizability of deferred tax assets at December 31, 2023, a valuation allowance is recorded against certain deferred tax assets based upon the conclusion that it was more likely than not they would not be realized. Certain deferred tax assets are dependent on future taxable income to be realized.
The Company has net operating loss carry forwards of $39,638 and $77,027 for state and foreign tax jurisdictions, respectively. The state net operating losses expire from 2024-2043 or have indefinite lives and the foreign net operating losses expire from 2024-2028 or have indefinite lives. The Company has general business and foreign tax credit carry forwards of $20,422, $1,054 and $714 for U.S. federal, state and foreign jurisdictions, respectively. The U.S. federal general business credits, if unused, begin to expire in 2027, and the state and foreign tax credits expire at various times.
The following is a reconciliation of the Company’s total gross unrecognized tax benefits:
202320222021
Balance as of January 1$2,545 $2,891 $3,449 
Tax positions related to the current year:
Additions— — — 
Tax positions related to the prior years:
Reductions— — — 
Expirations of statutes of limitation— (346)(558)
Balance as of December 31$2,545 $2,545 $2,891 
The Company has classified its uncertain tax positions as a reduction to non-current deferred income tax assets. If the Company’s tax positions are sustained by the taxing authorities in favor of the Company, the amount that would affect the Company’s effective tax rate is approximately $2,545 at December 31, 2023 and 2022.
The Company classifies interest expense and, if applicable, penalties which could be assessed related to unrecognized tax benefits as a component of income tax expense. For the years ended December 31, 2023, 2022 and 2021, the Company recognized no expense related to interest and penalties.
On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 ("IRA"), which, among other things, implemented a 15% minimum tax on financial statement income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. The IRA did not have a material impact on the Company's consolidated financial statements.
The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The following table summarizes the open tax years for each jurisdiction:
JurisdictionOpen Tax Years
U.S. Federal
2017-2023
Argentina
2018-2023
Brazil
2015-2023
China
2019-2023
France
2020-2023
Germany
2019-2023
Italy
2018-2023
Mauritius
2017-2023
Mexico
2018-2023
Netherlands
2019-2023
Sweden
2018-2023
United Kingdom
2022-2023