INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense consists of the following:

	2023		2022		2021
Current:
Federal	$	27,306	$	26,423	$	25,019
Foreign	7,634		7,103		7,553
State	4,403		3,964		3,664
Deferred:
Federal	(7,737)		(7,532)		(3,709)
Foreign	(2,285)		(215)		(3,038)
State	(603)		(1,361)		(360)
Total income tax provision	$	28,718	$	28,382	$	29,129

Schedule of Income Tax Reconciliation

The provision for income taxes differs from the amount computed by applying the Federal statutory rate of 21% for 2023, 2022, and 2021 to earnings before income tax expense due to the following:

	2023		2022		2021
Income tax at Federal statutory rate	$	28,825	$	28,087	$	26,299
State income taxes, net of Federal income taxes	2,513		1,862		2,406
Stock Options	(1,004)		(676)		(924)
Foreign-derived intangible income (FDII)	(1,752)		(1,778)		(1,540)
Foreign rate differential	946		2,066		1,188
Other	(810)		(1,179)		1,700
Total income tax provision	$	28,718	$	28,382	$	29,129

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 were as follows:

	2023		2022
Deferred tax assets:
Inventories	$	1,049	$	1,038
Restricted stock and stock options	5,565		3,932
Lease liabilities	4,812		5,439
Research and development	12,653		4,134
Other	3,874		3,717
Total deferred tax assets	27,953		18,260
Deferred tax liabilities:
Amortization	$	(42,351)	$	(46,688)
Depreciation	(28,937)		(25,097)
Prepaid expenses	(421)		(462)
Foreign currency and interest rate swaps	(647)		(1,456)
Right of use assets	(4,574)		(5,324)
Other	(3,047)		(1,995)
Total deferred tax liabilities	(79,977)		(81,022)
Valuation allowance	(22)		(22)
Net deferred tax liability	$	(52,046)	$	(62,784)

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is included in other long-term obligations on the Company’s consolidated balance sheets, is as follows:

	2023		2022		2021
Balance at beginning of period	$	5,815	$	5,881	$	5,335
Increases for tax positions of prior years	1,353		2,194		806
Decreases for tax positions of prior years	(2,518)		(2,260)		(260)
Balance at end of period	$	4,650	$	5,815	$	5,881

All of Balchem's unrecognized tax benefits, if recognized in future periods, would impact the Company's effective tax rate in such future periods.