INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Domestic	$	18,630	$	7,707	$	10,642
Foreign		11,070		15,974		12,471
Income before income taxes	$	29,700	$	23,681	$	23,113

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,
	2023		2022		2021
Current provision
Domestic	$	7,805	$	5,903	$	1,866
Foreign		2,834		4,111		3,288
Total current provision		10,639		10,014		5,154
Deferred benefit
Domestic		(4,087)		(3,915)		649
Foreign		(949)		193		(6,784)
Total deferred benefit		(5,036)		(3,722)		(6,135)
Income tax provision (benefit)	$	5,603	$	6,292	$	(981)

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,
	2023		2022		2021
Tax provision, computed at statutory rate	21.0	%	21.0	%	21.0	%
State tax, net of federal impact	1.7	%	1.3	%	2.2	%
Change in valuation allowance	(1.5)	%	(0.1)	%	7.2	%
Effect of foreign tax rate differences	1.9	%	3.9	%	3.9	%
Section 162(m) compensation	2.4	%	3.1	%	3.0	%
R&D Credit and incentives	(6.1)	%	(3.9)	%	(2.8)	%
Effect of Tax Cuts and Jobs Act	0.3	%	0.1	%	1.2	%
Subpart F income	0.0	%	(0.1)	%	(1.0)	%
Investment tax credits	0.0	%	0.0	%	(5.6)	%
Net operating loss carryforwards	0.0	%	0.0	%	(37.2)	%
Unrecognized tax benefits	(0.7)	%	0.0	%	4.9	%
Other	(0.1)	%	1.3	%	(1.0)	%
Provision for income taxes	18.9	%	26.6	%	(4.2)	%

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,
	2023		2022
Noncurrent deferred tax assets:
Employee benefit plans	$	2,241	$	2,122
Net operating loss and tax credit carryforwards		7,277		8,277
Accrued expenses and reserves		2,494		1,672
Research and development costs		8,363		4,520
Other		502		328
Total noncurrent deferred tax assets		20,877		16,919
Valuation allowance		(2,648)		(3,031)
Net noncurrent deferred tax assets:	$	18,229	$	13,888
Net noncurrent deferred tax liabilities:
Property and equipment	$	2,949	$	3,187
Goodwill and intangibles		10,754		10,944
Interest rate swap derivatives		1,019		1,678
Other		84		142
Total noncurrent deferred tax liabilities	$	14,806	$	15,951
Net deferred tax asset/(deferred tax liability)	$	3,423	$	(2,063)
Presented as follows:
Noncurrent deferred income tax assets	$	7,760	$	4,199
Noncurrent deferred income tax liabilities		(4,337)		(6,262)
Net deferred tax asset (liability)	$	3,423	$	(2,063)

Schedule of operating loss and tax credit gross carryforwards

As of December 31, 2023, 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)	$	8,597	2024
International	Net Operating Losses - Unlimited Carryforward (1)	$	20,059	No expiration
U.S. Federal	Foreign Tax Credits	$	1,002	2028
International	Investment Tax Credits	$	919	2030
U.S. Federal	R&D Tax Credits	$	38	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, 2023 is as follows (in thousands):

	December 31,		December 31,		December 31,
	2023		2022		2021
Beginning balance	$	786	$	1,057	$	—
Additions from tax legislation changes for net operating loss carryforwards		—		—		1,125
Reductions related to the lapse of the statute of limitations		(207)		(192)		(68)
Effect of foreign currency translation		7		(79)		—
Ending balance	$	586	$	786	$	1,057