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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | (4) Income Taxes The provisions for income taxes are:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 8,038 |  |  | $ | 7,439 |  |  | $ | 6,684 |
State |  |  | 1,211 |  |  |  | 2,173 |  |  |  | 2,149 |
Foreign |  |  | 3,238 |  |  |  | 3,943 |  |  |  | 1,106 |
|  |  | 12,487 |  |  |  | 13,555 |  |  |  | 9,939 |
Deferred: |  |  | — |  |  |  |  |  |  |
Federal |  |  | (6,263 | ) |  |  | (2,763 | ) |  |  | (2,369 | )
State |  |  | (1,029 | ) |  |  | (1,243 | ) |  |  | (1,039 | )
Foreign |  |  | (2,417 | ) |  |  | (988 | ) |  |  | 1,635 |
|  |  | (9,709 | ) |  |  | (4,994 | ) |  |  | (1,773 | )
Total |  | $ | 2,778 |  |  | $ | 8,561 |  |  | $ | 8,166 |
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:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Computed tax expense at statutory federal rates |  | $ | 2,162 |  |  | $ | 7,553 |  |  | $ | 5,619 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |
State taxes, net of federal income tax benefit |  |  | 756 |  |  |  | 1,493 |  |  |  | 1,485 |
Unrecognized tax benefits |  |  | (585 | ) |  |  | (1,441 | ) |  |  | (1,783 | )
Bargain purchase gain on business acquisition |  |  | — |  |  |  | — |  |  |  | (35 | )
Income tax credits |  |  | (720 | ) |  |  | (1,342 | ) |  |  | (1,206 | )
Foreign tax rate differential |  |  | 1,025 |  |  |  | 785 |  |  |  | 262 |
Stock based compensation |  |  | 219 |  |  |  | 55 |  |  |  | 208 |
Global intangible low-taxed income |  |  | 685 |  |  |  | — |  |  |  | 162 |
Change in valuation allowance |  |  | 1,376 |  |  |  | 379 |  |  |  | 3,304 |
Return to provision |  |  | 158 |  |  |  | (693 | ) |  |  | (651 | )
Nondeductible expenses / (tax deductions) |  |  | (327 | ) |  |  | 989 |  |  |  | (103 | )
Gross receipts taxes |  |  | 425 |  |  |  | 602 |  |  |  | 567 |
IP migration |  |  | (2,455 | ) |  |  | — |  |  |  | — |
Other |  |  | 59 |  |  |  | 181 |  |  |  | 337 |
Total |  | $ | 2,778 |  |  | $ | 8,561 |  |  | $ | 8,166 |
Income before provision for income taxes and losses on equity investments are:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Domestic |  | $ | 6,672 |  |  | $ | 28,739 |  |  | $ | 21,212 |
International |  |  | 3,625 |  |  |  | 7,226 |  |  |  | 5,929 |
Total |  | $ | 10,297 |  |  | $ | 35,965 |  |  | $ | 27,141 |
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, 2023 and 2022 relate to the following:
|  | 2023 |  |  | 2022 |
Deferred tax assets |  |  |  |  |  |
Inventories |  | $ | 2,764 |  |  | $ | 2,401 |
Program accrual |  |  | 9,742 |  |  |  | 8,277 |
Vacation pay accrual |  |  | 864 |  |  |  | 772 |
Accrued bonuses |  |  | 37 |  |  |  | 1,707 |
Bad debt expense |  |  | 2,143 |  |  |  | 1,450 |
Stock compensation |  |  | 1,536 |  |  |  | 1,414 |
Domestic NOL carryforward |  |  | 543 |  |  |  | 609 |
Foreign NOL carryforward |  |  | 6,322 |  |  |  | 2,554 |
Tax credits |  |  | 1,582 |  |  |  | 842 |
Lease liability |  |  | 5,812 |  |  |  | 6,209 |
Accrued expenses |  |  | 696 |  |  |  | 570 |
Unrealized foreign exchange loss |  |  | (1,182 | ) |  |  | 3,220 |
Capitalized R&D costs |  |  | 7,140 |  |  |  | 4,600 |
Deferred tax assets |  |  | 37,999 |  |  |  | 34,625 |
Less valuation allowance |  |  | (3,317 | ) |  |  | (3,853 | )
Deferred tax assets, net |  | $ | 34,682 |  |  | $ | 30,772 |
Deferred tax liabilities |  |  |  |  |  |
Plant and equipment, principally due to differences in depreciation and capitalized interest |  | $ | 32,336 |  |  | $ | 36,158 |
Lease assets |  |  | 5,617 |  |  |  | 6,079 |
Prepaid expenses |  |  | 1,406 |  |  |  | 1,685 |
Deferred revenue |  |  | — |  |  |  | 777 |
Other |  |  | 366 |  |  |  | 529 |
Deferred tax liabilities |  | $ | 39,725 |  |  | $ | 45,228 |
Total net deferred tax liabilities |  | $ | 5,043 |  |  | $ | 14,456 |
As of December 31, 2023, the Company maintained a full valuation allowance against its net deferred income tax assets related to the Company’s operations in Brazil, Spain, Singapore, and Ukraine totaling $3,317. The valuation allowance decreased by $536 for the year ended December 31, 2023, of which $1,912 relates to unrealized foreign exchange gains and foreign currency translation included in other comprehensive income for 2023, and $1,376 included in the provision for income taxes for 2023. As of December 31, 2022, the Company recorded a full valuation allowance against the net deferred income tax assets related to the Company’s operations in Brazil, Spain, and Ukraine totaling $3,853, of which $379 is included in the provision for income taxes for 2022 a nd $788 related to unrealized foreign exchange gains included in other comprehensive income for 2022. Gross foreign NOLs related to the Company's foreign operations were $19,699 and $8,342, for the years ended December 31, 2023 and 2022, respectively. Substantially all of the Company’s foreign NOLs can be carried forward indefinitely. Gross domestic federal and state NOLs available across all jurisdictions in which we operate were $3,598 and $3,622 as of December 31, 2023 and 2022, respectively. The Company’s federal and state NOLs expire over varying intervals in the future and are subject to annual limitation in accordance with IRC Section 382. 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, 2023 and 2022 included in other liabilities on the Company’s consolidated balance sheets:
|  | 2023 |  |  | 2022 |
Balance at beginning of year |  | $ | 2,006 |  |  | $ | 2,426 |
Additions for tax positions related to the current year |  |  | 230 |  |  |  | 225 |
Additions for tax positions related to the prior years |  |  | 302 |  |  |  | 5 |
Reduction for tax positions related to the prior years |  |  | (799 | ) |  |  | (745 | )
Effect of exchange rate changes |  |  | 57 |  |  |  | 95 |
Balance at end of year |  | $ | 1,796 |  |  | $ | 2,006 |
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. As of December 31, 2023, 2022, and 2021 the Company incurred $1,342, $2,161, and $2,909, respectively in interest and penalties related to unrecognized tax benefits on its consolidated balance sheets. It is expected that the amount of unrecognized tax benefits will change and $304 of unrecognized tax benefits is expected to be released within the next twelve months due to expiration of the statute of limitations. The Company believes it is more likely than not that the deferred assets detailed in the table above, exclusive of those in Brazil, Spain, Singapore and Ukraine with the previously mentioned full valuation allowances, will be realized in the normal course of business. It is the intent of the Company that undistributed earnings of foreign subsidiaries that amounted t o $78,600 a t December 31, 2023, are permanently reinvested. 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 2020 through 2022 tax years. State income tax returns are subject to examination for the 2019 through 2022 tax years. The Company has foreign income tax returns subject to examination. Beginning in 2022, The Tax Cuts and Jobs Act of 2017 ("TCJA"), requires taxpayers to capitalize and amortize research and development expenditures pursuant to Internal Revenue Code, or IRC, Section 174, which resulted in increases in the Company’s deferred tax asset balance of $7,140 as of December 31, 2023. There was an increase in cash tax payments in the amount of $3,344 and $6,180 for the years ended December 31, 2023 and December 31, 2022, respectively.

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