XML 40 R22.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components of income before income taxes and equity in (losses) earnings are as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in thousands)
Domestic | $ | 22,134 |  |  | $ | 20,796 |  |  | $ | 61,045 |
Foreign | (11,659) |  |  | (11,767) |  |  | (24,665) |
Total income before income taxes and equity in earnings | $ | 10,475 |  |  | $ | 9,029 |  |  | $ | 36,380 |
The provision for income taxes (before equity in (losses) earnings) consists of:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in thousands)
Current: |  |  |  |  |
Federal | $ | 6,326 |  |  | $ | 6,890 |  |  | $ | 10,361 |
State and local | 1,447 |  |  | 1,888 |  |  | 3,558 |
Foreign | 579 |  |  | 775 |  |  | 823 |
Deferred | (2,130) |  |  | (3,825) |  |  | 1,799 |
Income tax provision | $ | 6,222 |  |  | $ | 5,728 |  |  | $ | 16,541 |
Under the Tax Cuts and Jobs Act of 2017, research and development costs are no longer fully deductible and are required to be capitalized and amortized for U.S. tax purposes effective for tax years beginning after December 31, 2021. The mandatory capitalization requirement increases the Company’s deferred tax assets and income tax payable. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred income tax assets and (liabilities) are as follows:
| December 31,
| 2023 |  | 2022
| (in thousands)
Deferred income tax assets: |  |  |
Operating lease liabilities | $ | 20,571 |  |  | $ | 22,814 |
Stock options | 1,454 |  |  | 1,679 |
Inventory | 3,323 |  |  | 3,134 |
Operating loss carryforwards | 21,036 |  |  | 17,450 |
Accounts receivable allowances | 2,343 |  |  | 1,906 |
Accrued compensation | 913 |  |  | 1,137 |
Deferred compensation | 668 |  |  | 721 |
Environmental remediation accrual | 1,379 |  |  | 1,432 |
Capitalized research and experimental expenditures | 3,109 |  |  | 2,525 |
Other | 2,440 |  |  | 755 |
Total deferred income tax assets | $ | 57,236 |  |  | $ | 53,553 |
Deferred income tax liabilities: |  |  |
Operating lease right-of-use assets | $ | (17,060) |  |  | $ | (18,872) |
Fixed assets | (1,248) |  |  | (1,735) |
Intangibles | (26,207) |  |  | (26,230) |
Total deferred income tax liabilities | (44,515) |  |  | (46,837) |
Net deferred income tax asset | 12,721 |  |  | 6,716 |
Valuation allowance | (20,159) |  |  | (16,323) |
Net deferred income tax liability | $ | (7,438) |  |  | $ | (9,607) |
The Company has capital loss carryforwards of $7.2 million in foreign jurisdictions and $0.9 million in the U.S. federal jurisdiction at December 31, 2023 that are offset entirely by a valuation allowance. The Company has net operating losses in foreign jurisdictions of $75.9 million and $12.1 million in state jurisdictions at December 31, 2023 that are offset entirely by a valuation allowance. The foreign net operating losses can be carried forward indefinitely. The state net operating losses begin to expire in 2026. The provision for income taxes (before equity in (losses) earnings) differs from the amounts computed by applying the applicable federal statutory rates as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Federal income taxes at the statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (decreases): |  |  |  |  |
State and local income taxes, net of Federal income tax benefit | 5.7 |  |  | 13.9 |  |  | 8.8 |
Foreign rate differences | (19.7) |  |  | 6.9 |  |  | (9.2) |
Foreign withholding tax | 5.0 |  |  | 6.1 |  |  | 1.2 |
Non-deductible expenses | 7.9 |  |  | 7.1 |  |  | 3.3 |
Uncertain tax positions | (0.9) |  |  | 1.2 |  |  | 0.1 |
Research and development credit | (2.5) |  |  | (5.4) |  |  | (1.1) |
Federal return to provision | 0.7 |  |  | (3.4) |  |  | (0.4) |
Equity-based compensation | 5.0 |  |  | 0.1 |  |  | (0.6) |
Valuation Allowance | 37.2 |  |  | 15.9 |  |  | 22.4 |
Provision for income taxes | 59.4 | % |  | 63.4 | % |  | 45.5 | %
The estimated values of the Company’s gross uncertain tax positions at December 31, 2023, 2022 and 2021 consist of the following:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in thousands)
Balance at January 1 | $ | (1,130) |  |  | $ | (1,071) |  |  | $ | (1,648) |
Additions based on tax positions related to the current year | (27) |  |  | (79) |  |  | (49) |
Reductions for tax position of prior years | 167 |  |  | 20 |  |  | 626 |
Balance at December 31 | $ | (990) |  |  | $ | (1,130) |  |  | $ | (1,071) |
The Company had approximately $0.4 million, net of federal and state tax benefit, accrued at December 31, 2023 and 2022, for the payment of interest and penalties. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. If the Company’s tax positions are ultimately sustained, the Company’s liability, including interest, would be reduced by $1.5 million, all of which would impact the Company’s tax provision. On a quarterly basis, the Company evaluates its tax positions and revises its estimates accordingly. The Company believes that it is reasonably possible that an immaterial amount of its tax positions will be resolved within the next 12 months. The Company is no longer subject to U.S. Federal income tax examinations for the years prior to 2020, except for examination in tax year 2017 related to Transition Tax. The Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, Massachusetts, New Jersey, New York, and the United Kingdom. At December 31, 2023, the periods subject to examination by the Company’s major state jurisdictions, except for New York State (which has been audited through 2019), are generally for the years ended 2019 through 2022. In certain jurisdictions, Filament may have additional periods subject to examination. As of December 31, 2023, there are no material assessments in any given year.

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