Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The Company's income (loss) before income taxes and income tax expense (benefit), each by tax jurisdiction, consists of the following (dollars in thousands):


	Year ended December 31,
	2022		2021		2020
Income (loss) before income taxes:
Domestic	$	56,750	$	28,380	$	(134,630)
Foreign	30,920		40,730		31,920
Total income (loss) before income taxes	$	87,670	$	69,110	$	(102,710)
Current income tax expense:
Federal	$	13,300	$	940	$	200
State and local	3,470		530		810
Foreign	6,170		8,840		7,750
Total current income tax expense	22,940		10,310		8,760
Deferred income tax expense (benefit):
Federal	(1,780)		5,450		(16,900)
State and local	50		670		(4,430)
Foreign	290		(4,630)		(10,380)
Total deferred income tax expense (benefit)	(1,440)		1,490		(31,710)
Income tax expense (benefit)	$	21,500	$	11,800	$	(22,950)

Schedule of Deferred Tax Assets and Liabilities

The components of deferred taxes are as follows (dollars in thousands):


	December 31, 2022		December 31, 2021
Deferred tax assets:
Accounts receivable	$	1,290	$	950
Inventories	5,640		5,330

Accrued liabilities and other long-term liabilities	14,580		15,320
Operating lease liability	12,670		13,440
Research and experimentation costs (a)	4,130		—
Tax loss and credit carryforwards	27,310		30,690
Other	110		340
Gross deferred tax asset	65,730		66,070
Valuation allowances	(17,180)		(19,960)
Net deferred tax asset	48,550		46,110
Deferred tax liabilities:
Property and equipment	(25,100)		(23,920)
Right of use asset	(12,170)		(13,130)
Goodwill and other intangible assets	(22,050)		(20,160)
Investment in foreign affiliates, including withholding tax	(770)		(420)

Gross deferred tax liability	(60,090)		(57,630)
Net deferred tax liability	$	(11,540)	$	(11,520)

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(a) Effective for tax years beginning after December 31, 2021, research and experimentation expenditures are to be capitalized and amortized for tax-purposes as part of the Tax Cuts and Jobs Act of 2017.

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of income tax expense (benefit) computed at the U.S. federal statutory rate to income tax expense (benefit) allocated to income (loss) before income taxes (dollars in thousands):


	Year ended December 31,
	2022			2021			2020
U.S. federal statutory rate	21		%	21		%	21		%
Tax at U.S. federal statutory rate	$	18,380		$	14,550		$	(21,570)
State and local taxes, net of federal tax benefit	2,790			960			(2,850)
Differences in statutory foreign tax rates	1,150			(1,690)			(1,500)
Change in recognized tax benefits	(600)			(550)			(920)
Goodwill and other intangible assets impairment	—			—			13,430




Tax credits and incentives	(1,260)			(5,060)			(2,130)

Net change in valuation allowance	340			2,100			(6,390)
Nondeductible compensation	990			2,280			260


Other, net	$	(290)		$	(790)		$	(1,280)
Income tax expense (benefit)	$	21,500		$	11,800		$	(22,950)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in the UTBs for the years ended December 31, 2022 and 2021 is as follows (dollars in thousands):


	Unrecognized Tax Benefits
Balance at December 31, 2020	$	1,640
Tax positions related to current year:
Additions	130
Tax positions related to prior years:
Additions	20
Reductions	—
Settlements	—
Lapses in the statutes of limitations	(540)
Balance at December 31, 2021	$	1,250
Tax positions related to current year:
Additions	140
Tax positions related to prior years:
Additions	—
Reductions	(50)
Settlements	—
Lapses in the statutes of limitations	(230)
Balance at December 31, 2022	$	1,110