INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense is composed of the following:


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	32,296	$	26,107	$	19,746
State	5,926		4,438		3,489
Foreign	330		(223)		294
	38,552		30,322		23,529
Deferred:
Federal	(4,100)		2,870		5,345
State	120		(1,821)		1,405
Foreign	44		(71)		—
	(3,936)		978		6,750
Total	$	34,616	$	31,300	$	30,279

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense at the normal statutory federal rate to income tax expense included in the accompanying Consolidated Statements of Income is below:


	Year Ended December 31,
	2023			2022			2021
“Expected” provision at federal statutory rate	$	29,895		$	29,442		$	25,435
State income taxes, net	6,545			6,446			5,713
Foreign income taxes	330			(223)			294
Change in valuation allowance	1,135			416			204

Share-based compensation	(288)			(34)			31

Federal and state tax credits	(1,685)			(3,506)			(1,363)
Other	(1,316)			(1,241)			(35)
Income tax expense	$	34,616		$	31,300		$	30,279
Effective tax rate	24.4		%	22.3		%	25.0		%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences giving rise to deferred income taxes shown on the Consolidated Balance Sheets are as follows:


	December 31,
	2023		2022
Deferred income tax assets:


Share-based compensation	$	4,453	$	2,462

U.S. state and foreign tax credit carryforwards	3,350		3,991
Mexico and U.S. state loss carryforwards	3,890		3,040
Inventories	2,656		1,936
Operating lease liabilities	3,740		3,949
Deferred compensation	848		691
Section 174 timing difference	2,032		—
Other	4,279		3,002
Gross deferred income tax assets	25,248		19,071
Less: valuation allowance	(3,208)		(2,073)
Net deferred income tax assets	22,040		16,998
Deferred income tax liabilities:
Property, plant and equipment	(24,084)		(25,623)
Intangibles	(48,460)		(47,187)
Inventory	(2,007)		(2,812)
Operating lease right-of-use assets	(3,577)		(3,850)
Convertible Senior Note	(4,716)		(2,424)
Other	(2,267)		(2,214)
Gross deferred income tax liabilities	(85,111)		(84,110)
Net deferred income tax liability	$	(63,071)	$	(67,112)

Schedule of Valuation Allowance

A schedule of the change in valuation allowance is as follows:



Balance at December 31, 2021	$	1,657
Increase	416
Balance at December 31, 2022	2,073
Increase	1,135
Balance at December 31, 2023	$	3,208

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the total amount of unrecognized tax benefits (excluding interest and penalties) for 2023, 2022, and 2021:


	Year Ended December 31,
	2023		2022		2021
Beginning of year balance	$	156	$	113	$	112
Additions based on prior year tax positions	83		75		—
Additions based on current year tax positions	245		2		31
Reduction for prior year tax positions	(60)		(34)		(30)

End of year balance	$	424	$	156	$	113