XML 32 R19.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income tax expense for the years ended December 31, 2023, 2022 and 2021 consisted of the following (in thousands):
| 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | 25,170 |  |  | $ | 35,857 |  |  | $ | 49,433 |
State | 3,001 |  |  | 5,558 |  |  | 6,380 |
Total current | 28,171 |  |  | 41,415 |  |  | 55,813 |
Deferred |  |  |  |  |
Federal | 1,523 |  |  | (738) |  |  | (3,424) |
State | (312) |  |  | (186) |  |  | (291) |
Foreign | — |  |  | — |  |  | — |
Total deferred | 1,211 |  |  | (924) |  |  | (3,715) |
Provision for income taxes | $ | 29,382 |  |  | $ | 40,491 |  |  | $ | 52,098 |
The total provision for income taxes for the years ended December 31, 2023, 2022 and 2021 was $29.5 million, $40.5 million and $52.2 million, respectively. Those amounts have been allocated to the following financial statement items:
| 2023 |  | 2022 |  | 2021
Income before provision for income taxes | $ | 29,382 |  |  | $ | 40,491 |  |  | $ | 52,098 |
Stockholders' equity, unrealized (losses) gains on investment securities & foreign currency | 112 |  |  | (27) |  |  | 66 |
Total provision for income taxes | $ | 29,494 |  |  | $ | 40,464 |  |  | $ | 52,164 |
The reconciliation of the United States federal statutory tax provision to the Company’s provision for income taxes for the years ended December 31, 2023, 2022 and 2021 (in thousands, except percentages):
| 2023 |  | 2022 |  | 2021
Statutory federal tax | $ | 27,048 |  |  | 21.0 | % |  | $ | 38,621 |  |  | 21.0 | % |  | $ | 45,405 |  |  | 21.0 | %
State income taxes, net of federal benefit | 2,124 |  |  | 1.7 | % |  | 4,635 |  |  | 2.5 | % |  | 4,980 |  |  | 2.3 | %
Foreign taxes |  |  |  |  |  |  |  |  |  |  |
Hong Kong | 63 |  |  | 0.0 | % |  | 75 |  |  | 0.0 | % |  | 91 |  |  | 0.0 | %
Singapore | (199) |  |  | (0.2) | % |  | 28 |  |  | 0.0 | % |  | 32 |  |  | 0.0 | %
Share-based compensation | 143 |  |  | 0.1 | % |  | (26) |  |  | 0.0 | % |  | (1,835) |  |  | (0.8) | %
Research and development and jobs credits | (1,258) |  |  | (1.0) | % |  | (819) |  |  | (0.4) | % |  | (503) |  |  | (0.2) | %
Executive compensation | 1,895 |  |  | 1.5 | % |  | 1,470 |  |  | 0.8 | % |  | 2,652 |  |  | 1.2 | %
Charitable donations | (1,094) |  |  | (0.8) | % |  | (4,316) |  |  | (2.3) | % |  | — |  |  | 0.0 | %
Valuation allowance | (613) |  |  | (0.5) | % |  | 396 |  |  | 0.2 | % |  | 468 |  |  | 0.2 | %
Intercompany loan restructuring | 1,167 |  |  | 0.9 | % |  | — |  |  | — | % |  | — |  |  | — | %
Other permanent differences | 106 |  |  | 0.1 | % |  | 427 |  |  | 0.2 | % |  | 808 |  |  | 0.4 | %
Provision for income taxes | $ | 29,382 |  |  | 22.8 | % |  | $ | 40,491 |  |  | 22.0 | % |  | $ | 52,098 |  |  | 24.1 | %
Significant components of the Company’s deferred tax assets (liabilities) consisted of the following (in thousands):
| December 31, 2023 |  | December 31, 2022
Reserves on inventory and sales | $ | 721 |  |  | $ | 1,069 |
Credit and loss carryforwards | 2,881 |  |  | 3,713 |
Stock compensation | 1,784 |  |  | 2,374 |
Accrued expenses and deferred costs | 2,986 |  |  | 5,153 |
Inventory capitalization | 587 |  |  | 1,781 |
Lease obligations | 5,542 |  |  | 5,773 |
Capitalized research costs | 5,841 |  |  | 2,502 |
Charitable donations | 114 |  |  | 1,862 |
State taxes | 1,520 |  |  | — |
Other | 164 |  |  | 190 |
Valuation allowance | (1,680) |  |  | (2,523) |
Total deferred tax assets | 20,460 |  |  | 21,894 |
Right-of-use assets | (3,938) |  |  | (4,089) |
Prepaid expenses | (2,084) |  |  | (1,289) |
Depreciation | (10,321) |  |  | (11,165) |
Other | — |  |  | (23) |
Total deferred tax liabilities | (16,343) |  |  | (16,566) |
Net deferred tax assets | $ | 4,117 |  |  | $ | 5,328 |
On August 12, 2022, the President of the United States signed into law the Inflation Reduction Act. The two primary tax implications for corporations are a 15% alternative minimum tax (“AMT”) that applies to corporations with at least one billion of pretax income and a one percent surtax on share buybacks. The AMT will not apply to the Company in 2023 since the Company’s 2023 pretax income does not exceed the threshold. The share buyback surtax will not apply to the Company as its share issuances exceed its share buybacks in 2023. The Inflation Reduction Act did not have a material impact on the Company’s tax provision for the years ended December 31, 2023 and 2022. We file income tax returns in the United States and various states and foreign jurisdictions. The Company has separate state and foreign net operating loss carry forwards totaling $28.7 million that start expiring in 2029. The Company has recorded a valuation allowance for the portion of the net operating loss carry forwards which are not expected to be realized. As of December 31, 2023, the Company had $7.5 million of gross unrecognized tax benefits, which would have a net $6.2 million impact on the effective tax rate, if recognized. As of December 31, 2022, the Company had $6.0 million of gross unrecognized tax benefits, which would have a net $4.8 million impact on the effective tax rate, if recognized. The change for both 2023 and 2022 primarily relates to additional gross unrecognized benefits for current and prior year tax positions. The amounts of unrecognized tax benefits were as follows:
| December 31, 2023 |  | December 31, 2022
Unrecognized tax benefit at the beginning of the period | $ | 6,011 |  |  | $ | 2,714 |
Increase for current year tax positions | 1,744 |  |  | 860 |
Increase for prior period tax positions | 38 |  |  | 2,487 |
Reduction due to lapse in statute of limitations | (291) |  |  | (50) |
Unrecognized tax benefit at the end of the period | $ | 7,502 |  |  | $ | 6,011 |
The Company recognizes interest and penalty expenses related to unrecognized tax positions as a component of the income tax provision. As of December 31, 2023, and 2022, interest and penalties accrued were $1.3 million and $0.9 million, respectively. For 2023 and 2022, the Company recorded expenses (benefits) related to interest and penalties of $0.3 million and $0.2 million, respectively. As of December 31, 2023, the current year reduction primarily relates to the expiration of federal, state, and foreign statutes of limitation. The Company cannot reasonably project the change in its uncertain tax positions over the next twelve months. Our tax returns are subject to examination by various federal, state, and local tax authorities. The Company believes that it has adequately provided for all tax positions; however, amounts asserted by taxing authorities could be greater than our accrued position. Pending the resolution of one examination, and specific to jurisdictions where the Company has filed tax returns and examination of such returns is constrained by a statute of limitations, we are no longer subject to United States federal, state, and local income tax examinations by tax authorities for years prior to 2020.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration