INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Schedule of provision for income taxes based on income before income taxes

The provision for income taxes is based on income before income taxes as follows (in thousands):

	For the year ended
	December 31,		December 31,		December 31,
	2022		2021		2020
Domestic	$	7,707	$	10,642	$	8,478
Foreign		15,974		12,471		10,298
Income before income taxes	$	23,681	$	23,113	$	18,776

Schedule of components of the total income tax provision (benefit)

Components of the total income tax provision (benefit) are as follows (in thousands):

	For the year ended
	December 31,		December 31,		December 31,
	2022		2021		2020
Current provision
Domestic	$	5,903	$	1,866	$	2,167
Foreign		4,111		3,288		3,485
Total current provision		10,014		5,154		5,652
Deferred provision
Domestic		(3,915)		649		288
Foreign		193		(6,784)		(807)
Total deferred (benefit) provision		(3,722)		(6,135)		(519)
Income tax provision (benefit)	$	6,292	$	(981)	$	5,133

Schedule of differences in the provision (benefit) for income taxes from the amount determined by applying the federal statutory rate

	For the year ended
	December 31,		December 31,		December 31,
	2022		2021		2020
Tax provision, computed at statutory rate	21.0	%	21.0	%	21.0	%
State tax, net of federal impact	1.3	%	2.2	%	4.2	%
Change in valuation allowance	(0.1)	%	7.2	%	0.0	%
Effect of foreign tax rate differences	3.9	%	3.9	%	4.3	%
Permanent items, other	0.2	%	0.2	%	(0.2)	%
Section 162(m) compensation	3.1	%	3.0	%	2.2	%
R&D Credit	(3.9)	%	(2.8)	%	(3.6)	%
Effect of Tax Cuts and Jobs Act	0.1	%	1.2	%	(1.3)	%
Subpart F income	(0.1)	%	(1.0)	%	1.3	%
Investment tax credits	0.0	%	(5.6)	%	0.0	%
Net operating loss carryforwards	0.0	%	(37.2)	%	0.0	%
Unrecognized tax benefits	0.0	%	4.9	%	0.0	%
Other	1.1	%	(1.2)	%	(0.6)	%
Provision for income taxes	26.6	%	(4.2)	%	27.3	%

Schedule of tax effects of significant temporary differences and credit and operating loss carryforwards that give rise to the net deferred tax assets and tax liabilities

The tax effects of significant temporary differences and credit and operating loss carryforwards that give rise to the net deferred tax assets and tax liabilities are as follows (in thousands):

	December 31,		December 31,
	2022		2021
Noncurrent deferred tax assets:
Employee benefit plans	$	2,122	$	2,085
Net operating loss and tax credit carryforwards		8,277		9,802
Accrued expenses and reserves		1,672		915
Research and development costs		4,520		—
Other		328		218
Total noncurrent deferred tax assets		16,919		13,020
Valuation allowance		(3,031)		(2,896)
Net noncurrent deferred tax assets:	$	13,888	$	10,124
Net noncurrent deferred tax liabilities:
Property and equipment	$	3,187	$	3,238
Goodwill and intangibles		10,944		6,484
Interest rate swap derivatives		1,678		—
Other		142		121
Total noncurrent deferred tax liabilities	$	15,951	$	9,843
Net deferred tax asset/(deferred tax liability)	$	(2,063)	$	281
Presented as follows:
Noncurrent deferred income tax assets	$	4,199	$	5,321
Noncurrent deferred income tax liabilities		(6,262)		(5,040)
Net deferred tax liability	$	(2,063)	$	281

Schedule of operating loss and tax credit gross carryforwards

As of December 31, 2022, the Company has the following gross carryforwards available (in thousands):

			Amount
Jurisdiction	Tax Attribute		(in thousands)	Begin to expire
U.S. State	Net Operating Losses (1)	$	11,189	2024
International	Net Operating Losses - Unlimited Carryforward (1)	$	21,133	No expiration
U.S. Federal	Foreign Tax Credits	$	1,003	2028
International	R&D Tax Credits	$	374	2024
U.S. Federal	R&D Tax Credits	$	95	2036

(1) Net operating losses (NOL’s) are presented as pre-tax amounts.

Schedule of changes to the unrecognized tax benefit

The summary of changes to the unrecognized tax benefit for the year ended December 31, 2022 is as follows (in thousands):

	December 31,
	2022
Beginning balance	$	1,057
Additions from tax legislation changes for net operating loss carryforwards		—
Reductions related to net operating loss usage on 2020 tax returns		(192)
Currency Translation		(79)
Ending balance	$	786
___________________________
(1)     No other unrecognized tax benefits were recognized in periods prior to the year ended December 31, 2021 that, if recognized, would reduce the effective tax rate.