Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2023 |
Income Tax Disclosure [Abstract] |
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Income From Continuing Operations Before Income Taxes |
Income from operations before income taxes consisted of the following: | | | | | | | | | | | | | Year Ended December 31, | (in thousands) | 2023 | | 2022 | United States | $ | (24,949) | | | $ | 910 | | Foreign | 22,942 | | | 12,027 | | Total | $ | (2,007) | | | $ | 12,937 | |
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Components of Provision (Benefit) for Income Taxes |
Provision (benefit) for income taxes from operations consisted of the following: | | | | | | | | | | | | | Year Ended December 31, | (in thousands) | 2023 | | 2022 | Current income tax expense: | | | | U.S. federal | $ | 4,961 | | | $ | 4,011 | | U.S. state | 2,388 | | | 869 | | Foreign | 7,639 | | | 3,057 | | Total | $ | 14,988 | | | $ | 7,937 | | Deferred income tax expense (benefit): | | | | U.S. federal | $ | (8,101) | | | $ | (947) | | U.S. state | 1,232 | | | (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. state | 3,620 | | | 796 | | Foreign | 6,481 | | | 1,672 | | Total | $ | 6,960 | | | $ | 5,531 | |
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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, | | 2023 | | 2022 | Statutory Federal rate | 21.0 | % | | 21.0 | % | Increase (decrease) resulting from: | | | | Change in valuation allowance - current period activity | (380.7) | | | 1.3 | | | | | | Foreign rate differential | 6.2 | | | 4.0 | | Stock compensation | (5.0) | | | (0.5) | | Compensation deduction limitation | (7.0) | | | — | | State and local taxes, net | 67.1 | | | 4.5 | | Life insurance | (3.4) | | | — | | Meals & entertainment | (17.3) | | | 1.4 | | Change in uncertain tax positions | 18.1 | | | (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 balances | 79.4 | | | — | | Other items, net | 1.7 | | | 1.7 | | Provision for income taxes | (346.8) | % | | 42.8 | % |
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Deferred Tax Assets and Liabilities |
Deferred income tax assets and liabilities contain the following temporary differences: | | | | | | | | | | | | | December 31, | (in thousands) | 2023 | | 2022 | Deferred tax assets: | | | | Federal & state NOL carryforward | $ | 10,158 | | | $ | 8,218 | | | | | | Inventory reserve | 8,815 | | | 6,990 | | Transaction costs | 673 | | | 1,620 | | | | | | Stock based compensation | 3,602 | | | 2,531 | | Accrued benefits & bonuses | 11,998 | | | 7,074 | | Bad debt reserve | 977 | | | 496 | | Section 163(j) limitation carryforward | 15,891 | | | 7,692 | | ROU liabilities | 18,936 | | | 11,947 | | Deferred state income tax | — | | | 745 | | Deferred revenue | 77 | | | 86 | | Investment in Foreign Subsidiaries | — | | | — | | Other | 4,005 | | | 2,822 | | Total deferred tax assets | 75,132 | | | 50,221 | | | | | | Deferred tax liabilities: | | | | Intangible assets and goodwill | 44,057 | | | 45,951 | | ROU asset | 18,264 | | | 11,295 | | Fixed assets | 20,977 | | | 15,617 | | Deferred state income tax | 17 | | | — | | Other | 1,591 | | | 188 | | Total deferred liabilities | 84,906 | | | 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) | |
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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) | 2023 | | 2022 | Balance at beginning of year | $ | 3,027 | | | $ | — | | Additions for tax positions of current year | — | | | 191 | | Additions for tax positions of prior years | 503 | | | 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 | |
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