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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | (4) Income Taxes The provisions for income taxes are:
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,684 |  |  | $ | (1,197 | ) |  | $ | (235 | )
State |  |  | 2,149 |  |  |  | (3 | ) |  |  | (151 | )
Foreign |  |  | 1,106 |  |  |  | 2,831 |  |  |  | 2,956 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (2,369 | ) |  |  | 2,177 |  |  |  | 2,867 |
State |  |  | (1,039 | ) |  |  | 403 |  |  |  | 1,548 |
Foreign |  |  | 1,635 |  |  |  | (1,131 | ) |  |  | (1,783 | )
Total |  | $ | 8,166 |  |  | $ | 3,080 |  |  | $ | 5,202 |
Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21.0% to income before income tax expense, as a result of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
Computed tax expense at statutory federal rates |  | $ | 5,619 |  |  | $ | 3,874 |  |  | $ | 3,993 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of federal income tax benefit |  |  | 1,485 |  |  |  | 559 |  |  |  | 1,131 |
Unrecognized tax benefits |  |  | (1,783 | ) |  |  | (2,092 | ) |  |  | 263 |
Bargain purchase gain on business acquisition |  |  | (35 | ) |  |  | (978 | ) |  |  | — |
Income tax credits |  |  | (1,206 | ) |  |  | (812 | ) |  |  | (819 | )
Foreign tax rate differential |  |  | 262 |  |  |  | 2,145 |  |  |  | 341 |
Stock based compensation |  |  | 208 |  |  |  | 377 |  |  |  | 366 |
Global intangible low-taxed income |  |  | 162 |  |  |  | — |  |  |  | 249 |
Change in valuation allowance |  |  | 3,304 |  |  |  | — |  |  |  | — |
Other |  |  | 150 |  |  |  | 7 |  |  |  | (322 | )
Total |  | $ | 8,166 |  |  | $ | 3,080 |  |  | $ | 5,202 |
Income before provision for income taxes and losses on equity investments are:
|  | 2021 |  |  | 2020 |  |  | 2019 |
Domestic |  | $ | 21,212 |  |  | $ | 11,858 |  |  | $ | 15,465 |
International |  |  | 5,929 |  |  |  | 6,589 |  |  |  | 3,547 |
Total |  | $ | 27,141 |  |  | $ | 18,447 |  |  | $ | 19,012 |
Temporary differences between the consolidated financial statements’ carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2021 and 2020 relate to the following:
|  | 2021 |  |  | 2020 |
Deferred tax asset |  |  |  |  |  |  |  |
Inventories |  | $ | 1,777 |  |  | $ | 1,416 |
Program accrual |  |  | 9,098 |  |  |  | 7,306 |
Vacation pay accrual |  |  | 792 |  |  |  | 815 |
Accrued bonuses |  |  | 1,250 |  |  |  | 589 |
Bad debt expense |  |  | 1,361 |  |  |  | 952 |
Stock compensation |  |  | 1,532 |  |  |  | 2,079 |
Domestic NOL carryforward |  |  | 675 |  |  |  | 708 |
Foreign NOL carryforward |  |  | 1,718 |  |  |  | 1,434 |
Tax credits |  |  | 807 |  |  |  | 931 |
Lease liability |  |  | 6,718 |  |  |  | 3,378 |
Accrued expenses |  |  | 723 |  |  |  | 347 |
Unrealized foreign exchange loss |  |  | 3,847 |  |  |  | 2,798 |
Other |  |  | 744 |  |  |  | 735 |
Deferred tax asset |  | $ | 31,042 |  |  | $ | 23,488 |
Less valuation allowance |  |  | (4,262 | ) |  |  | — |
Deferred tax asset, net |  | $ | 26,780 |  |  | $ | 23,488 |
Deferred tax liability |  |  |  |  |  |  |  |
Plant and equipment, principally due to differences in depreciation and capitalized interest |  | $ | 37,113 |  |  | $ | 36,878 |
Lease assets |  |  | 6,600 |  |  |  | 3,332 |
Prepaid expenses |  |  | 1,666 |  |  |  | 1,508 |
Deferred revenue |  |  | 1,014 |  |  |  | 874 |
Other |  |  | 123 |  |  |  | 1,692 |
Deferred tax liability |  | $ | 46,516 |  |  | $ | 44,284 |
Total net deferred tax liability |  | $ | 19,736 |  |  | $ | 20,796 |
As of December 31, 2021, we recorded a full valuation allowance against the net deferred income tax assets related to the Company’s operations in Brazil totaling $4,262, of which $3,304 is included in the provision for income taxes for 2021 and $958 related to unrealized foreign exchange losses for 2021 included in other comprehensive income for 2021. There was no valuation allowance as of December 31, 2020. Gross foreign NOLs were $5,491 and $5,021 for the year ended December 31, 2021 and 2020, respectively. Substantially all of the Company’s foreign NOLs can be carried forward indefinitely. Gross federal and state NOLs available across all jurisdictions in which we operate were $3,733 and $3,994 as of December 31, 2021 and 2020, respectively. The Company’s federal and state NOLs expire over varying intervals in the future. The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2021 and 2020 included in other liabilities, excluding current installments on the Company’s consolidated balance sheets:
|  | 2021 |  |  | 2020 |
Balance at beginning of year |  | $ | 3,222 |  |  | $ | 4,395 |
Additions for tax positions related to the current year |  |  | 223 |  |  |  | 159 |
Additions for tax positions related to the prior years |  |  | 56 |  |  |  | 16 |
Reduction for tax positions related to the prior years |  |  | (971 | ) |  |  | (841 | )
Effect of exchange rate changes |  |  | (104 | ) |  |  | (507 | )
Balance at end of year |  | $ | 2,426 |  |  | $ | 3,222 |
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s consolidated financial statements. For the years ended December 31, 2021, 2020, and 2019 the Company had recognized a balance of approximately $2,909, $4,195, and $6,528 respectively in interest and penalties related to unrecognized tax benefits. It is expected that the amount of unrecognized tax benefits will change and $1,699 of unrecognized tax benefits is expected to be released within the next twelve months due to expiration of statute of limitations. The Company believes it is more likely than not that the deferred tax assets detailed in the table above, exclusive of those in Brazil with the previously mentioned full valuation allowance, will be realized in the normal course of business. It is the intent of the Company that undistributed earnings of foreign subsidiaries are permanently reinvested. The amount of undistributed earnings was $12,741 as of December 31, 2021. Upon distribution of earnings in the form of dividends or otherwise, the Company may still be subject to state income taxes and withholding taxes payable to the various foreign countries. Determination of the unrecognized deferred tax liability is not practical due to the complexities of a hypothetical calculation. The Company is subject to U.S. federal income tax as well as to income tax in multiple state jurisdictions. Federal income tax returns of the Company are subject to Internal Revenue Service (“IRS”) examination for the 2018 through 2020 tax years. State income tax returns are subject to examination for the 2017 through 2020 tax years. The Company has foreign income tax returns subject to examination. The Mississippi Department of Revenue has completed its audit of the Company’s state income tax returns for the years ended December 31, 2016 through December 31, 2018. The proposed adjustment for the period is immaterial. On November 9, 2018, the Company completed the purchase of all the outstanding shares of TyraTech, Inc., a loss corporation. The Company obtained approximately $3,971 of usable federal net operating losses through the acquisition. The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of NOLs in the event of an “ownership change” of a corporation. During 2019, the Company completed the Section 382 analysis and determined that the utilization of the losses is subject to an annual limitation of $162, with an additional $890 of net operating losses available over the first five years after the ownership change. On October 2, 2020, the Company completed the acquisition of all outstanding stock of the Agrinos Group Companies (Agrinos), except for Agrinos AS. Agrinos has operating entities in the U.S., Mexico, India, Brazil, China, Ukraine, and Spain. Agrinos, Inc., an U.S. corporation with operating losses. The Company obtained approximately $126 of usable federal net operating losses through the acquisition. The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of NOLs in the event of an “ownership change” of a corporation. During 2021, the Company completed an analysis and determined that the potential annual limitation on the Company’s utilization of the losses is insignificant.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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