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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income From Continuing Operations Before Income Taxes
Income from operations before income taxes consisted of the following:
Year Ended December 31,
(in thousands)20232022
United States$(24,949)$910 
Foreign22,942 12,027 
Total$(2,007)$12,937 
Components of Provision (Benefit) for Income Taxes
Provision (benefit) for income taxes from operations consisted of the following:
Year Ended December 31,
(in thousands)20232022
Current income tax expense:
U.S. federal$4,961 $4,011 
U.S. state2,388 869 
Foreign7,639 3,057 
Total$14,988 $7,937 
Deferred income tax expense (benefit):
U.S. federal$(8,101)$(947)
U.S. state1,232 (73)
Foreign(1,159)(1,386)
Total$(8,028)$(2,406)
Total income tax expense (benefit):
U.S. federal$(3,141)$3,063 
U.S. state3,620 796 
Foreign6,481 1,672 
Total$6,960 $5,531 
Reconciliation Between Effective Income Tax Rate and Statutory Federal Rate
The reconciliation between the effective income tax rates and the statutory federal rates for operations are as follows:
Year Ended December 31,
20232022
Statutory Federal rate21.0 %21.0 %
Increase (decrease) resulting from:
Change in valuation allowance - current period activity(380.7)1.3 
Foreign rate differential6.2 4.0 
Stock compensation(5.0)(0.5)
Compensation deduction limitation(7.0)— 
State and local taxes, net67.1 4.5 
Life insurance(3.4)— 
Meals & entertainment(17.3)1.4 
Change in uncertain tax positions18.1 (2.9)
Provision to return differences(45.3)— 
GILTI, Section 78, FDII, and Section 250— 3.2 
Transaction costs— 8.3 
Branch income(81.6)— 
Earn Out Revaluation— 0.8 
Change in deferred balances79.4 — 
Other items, net1.7 1.7 
Provision for income taxes(346.8)%42.8 %
Deferred Tax Assets and Liabilities
Deferred income tax assets and liabilities contain the following temporary differences:
December 31,
(in thousands)20232022
Deferred tax assets:
Federal & state NOL carryforward$10,158 $8,218 
Inventory reserve8,815 6,990 
Transaction costs673 1,620 
Stock based compensation3,602 2,531 
Accrued benefits & bonuses11,998 7,074 
Bad debt reserve977 496 
Section 163(j) limitation carryforward15,891 7,692 
ROU liabilities18,936 11,947 
Deferred state income tax— 745 
Deferred revenue77 86 
Investment in Foreign Subsidiaries— — 
Other4,005 2,822 
Total deferred tax assets75,132 50,221 
Deferred tax liabilities:
Intangible assets and goodwill44,057 45,951 
ROU asset18,264 11,295 
Fixed assets20,977 15,617 
Deferred state income tax17 — 
Other1,591 188 
Total deferred liabilities84,906 73,051 
Net deferred tax liabilities before valuation allowance(9,774)(22,830)
Valuation allowance(8,457)(815)
Net deferred tax liabilities$(18,231)$(23,645)
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
December 31,
(in thousands)20232022
Balance at beginning of year$3,027 $— 
Additions for tax positions of current year— 191 
Additions for tax positions of prior years503 3,741 
Reductions for tax positions of prior year— (238)
Lapse of statute of limitations(796)(667)
Balance at end of year$2,734 $3,027