Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Earnings Before Income Taxes

The income tax provisions were calculated based upon the following components of earnings before income tax for the years ended December 31, 2022, 2021 and 2020:

	Year Ended December 31,
	2022			2021			2020
Earnings before income tax:
Domestic	$	(34,211	)	$	(4,547	)	$	(11,374	)
Foreign		72,593			118,399			92,930
Earnings before income tax	$	38,382		$	113,852		$	81,556

Provision for Income Taxes

The components of the provision for income taxes for the years ended December 31, 2022, 2021 and 2020 are summarized as follows:

	Year Ended December 31,
	2022			2021			2020
Current income tax expense:
Federal	$	3,006		$	1,944		$	784
State and local		650			234			83
Foreign		17,607			18,390			20,150
Total current income tax expense	$	21,263			20,568			21,017
Deferred income tax (benefit) expense:
Federal		(5,971	)		(4,400	)		(2,302	)
State and local		(213	)		(91	)		32
Foreign		(1,138	)		4,341			3,119
Total deferred (benefit) income tax expense		(7,322	)		(150	)		849
Total income tax expense	$	13,941		$	20,418		$	21,866

Deferred Tax Assets and Deferred Tax Liabilities

The deferred tax assets and deferred tax liabilities and related valuation allowance were comprised of the following as of December 31, 2022 and 2021:

	December 31,
	2022			2021
Deferred tax assets:
Net operating losses	$	43,296		$	25,610
Intangible assets		4,417			21,179
Research and development credits		7,835			9,736
Property and equipment		6,983			7,071
Valuation reserves and accrued liabilities		8,388			7,333
Capitalized Research and Development Costs		19,087			9,018
Stock compensation		3,051			3,832
Defined benefit obligation		1,265			1,466
Inventory		6,762			1,914
Other credits		10,296			10,158
Other		790			146
Total deferred tax asset		112,170			97,463
Valuation allowance		(36,671	)		(16,090	)
Deferred tax liabilities:
Unrealized foreign currency exchange gains	$	(2,413	)	$	(2,488	)
Undistributed profits of subsidiary		(5,981	)		(6,676	)
Property and equipment		(15,423	)		(2,420	)
Other		(3,056	)		(1,428	)
Total deferred tax liability		(26,873	)		(13,012	)
Net deferred tax asset	$	48,626		$	68,361

Reconciliations Between Statutory Federal Income Tax Rate and Effective Rate

Reconciliations between the statutory Federal income tax rate and the effective rate of income tax expense for the years ended December 31, 2022, 2021 and 2020 are as follows:

	Year Ended December 31,
	2022			2021			2020
Statutory Federal income tax rate		21.0	%		21.0	%		21.0	%
Increase (decrease) resulting from:
Change in valuation allowance		6.4	%		(1.2	)%		(0.4	)%
Effect of different tax rates of foreign jurisdictions		(4.9	)%		(5.2	)%		(4.7	)%
Tax credits & deductions related to R&D		(10.1	)%		(2.3	)%		(3.8	)%
Non-deductible expenses		14.9	%		1.7	%		2.1	%
Non-deductible expenses related to acquisitions		7.0	%		0.0	%		0.0	%
Other foreign, state and local taxes		0.7	%		1.6	%		1.4	%
Tax impact of foreign income		4.2	%		3.6	%		4.9	%
Stock option compensation		(3.8	)%		(2.0	)%		(0.4	)%
Other		0.9	%		0.7	%		6.7	%
Effective rate		36.3	%		17.9	%		26.8	%

Net Operating Loss Carryforwards

The Company has Net Operating Loss (“NOL”) carryforwards as follows:

Jurisdiction	Amount as of December 31, 2022		Years of Expiration
U.S. state income tax	$	54,912	2023-2042
Foreign	$	320,417	Indefinite

Reconciliation of Unrecognized Tax Benefits

The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended December 31,
	2022			2021			2020
Balance at beginning of year	$	5,665		$	4,967		$	3,795
Additions based on tax position related to current year		972			1,105			1,489
Additions based on tax position related to prior year		433			160			179
Reductions from settlements and statute of limitation expiration		(610	)		(312	)	$	(650	)
Effect of foreign currency translation		(275	)		(255	)		154
Balance at end of year	$	6,185		$	5,665		$	4,967