Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income before income taxes consisted of the following:


	Fiscal Year
	2023		2022		2021
	(in thousands)
U.S. operations	$	3,611	$	11,758	$	4,460
Foreign operations	60,043		30,159		68,173
Income before income taxes	$	63,654	$	41,917	$	72,633

Schedule of Provisions for Federal, Foreign and State Income Taxes

Provisions for federal, foreign and state income taxes in the consolidated statements of operations consisted of the following components:


	Fiscal Year
	2023		2022		2021
	(in thousands)
Current expense:
Federal	$	5,523	$	1,624	$	1,987
Foreign	18,330		20,903		21,372
State	2,167		1,307		1,418
Current expense	26,020		23,834		24,777

Deferred (benefit) expense:
Federal	(4,810)		346		(2,841)
Foreign	(1,212)		(2,053)		(3,846)
State	(861)		230		(691)
Deferred benefit	(6,883)		(1,477)		(7,378)

Total income tax expense	$	19,137	$	22,357	$	17,399

Schedule of Effective Income Tax Rate Reconciliation

The following summary reconciles income taxes at the U.S. federal statutory rate of 21% applicable for all periods presented to the Company’s actual income tax expense:


	Fiscal Year
	2023		2022		2021
	(in thousands)
Income taxes at U.S. federal statutory rate	$	13,367	$	8,803	$	15,253
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax effect	(432)		817		(87)
Non-deductible business expenses	747		237		330
Non-deductible employee compensation	1,681		1,678		1,213
Tax effects of Company-owned life insurance	(587)		612		(762)
Tax effects of undistributed earnings from foreign subsidiaries not deemed to be indefinitely reinvested	779		1,123		1,219
Foreign and U.S. tax effects attributable to foreign operations	1,537		3,528		1,748
Expiring tax attributes	3,780		—		—
Valuation allowance effect	(879)		2,898		1,349
Research and development tax credits	(820)		(917)		(793)
Goodwill impairment	—		6,171		—
Unrecognized tax benefits	(79)		(2,463)		(2,663)
Other	43		(130)		592
Income tax expense	$	19,137	$	22,357	$	17,399

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows:


	End of Fiscal Year
	2023		2022
	(in thousands)
Deferred tax assets
Lease liability	$	25,164	$	23,649
Net operating loss and interest carryforwards	9,587		7,616
Federal tax credit carryforwards	7,876		10,904
Derivative instruments	—		295
Deferred compensation	16,517		16,577
Inventory	3,041		3,521
Prepaids, accruals and reserves	8,147		6,947
Capitalized costs	9,442		7,467
Other	—		58
Deferred tax asset, gross	79,774		77,034
Valuation allowance	(17,357)		(18,236)
Deferred tax asset, net	$	62,417	$	58,798

Deferred tax liabilities
Property and equipment	$	24,662	$	25,319
Intangible assets	24,411		25,533
Lease asset	23,868		22,811
Pensions	5		4,284
Foreign currency	686		600
Foreign withholding and U.S. state taxes on unremitted earnings	725		1,146
Other	171		—
Deferred tax liabilities	74,528		79,693

Net deferred tax liabilities	$	12,111	$	20,895

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows:


	Fiscal Year
	2023		2022		2021
	(in thousands)
Balance at beginning of year	$	5,743	$	8,220	$	10,799
Increases related to tax positions taken during the current year	320		342		265
Increases related to tax positions taken during the prior years	140		204		198
Decreases related to tax positions taken during the prior years	(54)		(447)		—
Decreases related to lapse of applicable statute of limitations	(1,218)		(2,574)		(2,309)
Changes due to settlements	—		—		(836)
Changes due to foreign currency translation	17		(2)		103
Balance at end of year	$	4,948	$	5,743	$	8,220