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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Tax Rate A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows:

 

 

 

Percent of Income before
Income Taxes

 

 

 

2022

 

 

2021

 

 

2020

 

Statutory federal income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes - net of federal tax benefit

 

 

2.0

 

 

 

3.1

 

 

 

3.3

 

Foreign tax rate differential

 

 

0.6

 

 

 

1.3

 

 

 

0.3

 

Non-deductible expenses

 

 

0.4

 

 

 

0.4

 

 

 

0.7

 

Tax carryforward expiration

 

 

2.5

 

 

 

 

 

 

 

Changes in unrecognized tax benefits

 

 

(1.0

)

 

 

 

 

 

(0.8

)

Valuation allowances

 

 

(2.3

)

 

 

 

 

 

 

Other

 

 

(0.3

)

 

 

(0.2

)

 

 

0.2

 

Effective tax rate for the year

 

 

22.9

%

 

 

25.6

%

 

 

24.7

%

Income (Loss) from Continuing Operations Before Income Taxes

Income before income taxes was attributable to the following sources:

 

 

 

2022

 

 

2021

 

 

2020

 

United States

 

$

66,646

 

 

$

36,203

 

 

$

45,070

 

Foreign

 

 

11,564

 

 

 

8,890

 

 

 

3,792

 

Totals

 

$

78,210

 

 

$

45,093

 

 

$

48,862

 

Income Tax Expense (Benefit) from Continuing Operations

Income tax expense consisted of the following:

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

11,583

 

 

$

4,901

 

 

$

957

 

State and local

 

 

1,739

 

 

 

1,439

 

 

 

1,014

 

Foreign

 

 

2,549

 

 

 

2,389

 

 

 

1,390

 

Total current provision

 

 

15,871

 

 

 

8,729

 

 

 

3,361

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

1,675

 

 

 

2,534

 

 

 

8,702

 

State and local

 

 

230

 

 

 

345

 

 

 

356

 

Foreign

 

 

167

 

 

 

(53

)

 

 

(326

)

Total deferred provision

 

 

2,072

 

 

 

2,826

 

 

 

8,732

 

Provision for income taxes

 

$

17,943

 

 

$

11,555

 

 

$

12,093

 

Significant Components of the Company's Deferred Taxes

Significant components of the Company’s deferred taxes as of December 31, 2022 and 2021 are as follows:

 

 

 

2022

 

 

2021

 

Deferred income tax assets

 

 

 

 

 

 

Compensation accruals

 

$

2,449

 

 

$

2,387

 

Inventory valuation

 

 

1,553

 

 

 

2,008

 

Allowance for uncollectible accounts

 

 

510

 

 

 

489

 

Non-deductible accruals

 

 

4,137

 

 

 

3,538

 

Operating lease liability

 

 

5,932

 

 

 

6,220

 

Finance lease liability

 

 

1,981

 

 

 

2,087

 

Other deductible non-goodwill intangibles

 

 

5,369

 

 

 

5,291

 

State deferred taxes

 

 

32

 

 

 

176

 

Capital loss carryforwards

 

 

127

 

 

 

1,982

 

Net operating loss carryforwards

 

 

21

 

 

 

30

 

 

 

 

22,111

 

 

 

24,208

 

Valuation allowance

 

 

(127

)

 

 

(1,982

)

 

 

 

21,984

 

 

 

22,226

 

Deferred income tax liabilities

 

 

 

 

 

 

Property, plant and equipment

 

 

10,508

 

 

 

8,983

 

Goodwill and indefinite-lived intangibles

 

 

9,438

 

 

 

8,755

 

Right of use asset - operating leases

 

 

5,832

 

 

 

6,150

 

Finance lease assets

 

 

1,906

 

 

 

2,051

 

Other

 

 

1,679

 

 

 

1,622

 

 

 

 

29,363

 

 

 

27,561

 

Net deferred income tax liability

 

$

(7,379

)

 

$

(5,335

)

Activity Related to the Company's Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

 

 

 

2022

 

 

2021

 

 

2020

 

Balance at January 1

 

$

774

 

 

$

774

 

 

$

1,098

 

Increases related to previous year tax positions

 

 

 

 

 

 

 

 

59

 

Reductions due to lapse of applicable statute of limitations

 

 

(774

)

 

 

 

 

 

(383

)

Balance at December 31

 

$

 

 

$

774

 

 

$

774