Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Consolidated Income Before Income Taxes
Consolidated earnings before income taxes consists of the following for 2022, 2021, and 2020:
Year Ended
2022 2021 2020
U.S. $ (23,996) $ 13,017  $ 18,838 
Foreign 132,617  157,625  159,110 
Total earnings before income taxes $ 108,621  $ 170,642  $ 177,948 
Schedule of Income Tax Expense (Benefit) Included in Income From Continuing Operations
Income tax expense (benefit) included in income from continuing operations consists of the following:
Year Ended
2022 2021 2020
Current
Federal $ 42  $ (264) $ 306 
State 297  567  303 
Foreign 45,869  56,668  55,147 
Total Current 46,208  56,971  55,756 
Deferred
Federal (9,180) (4,088) 1,317 
State (331) (40) (47)
Foreign 2,574  1,294  (3,742)
Total Deferred (6,937) (2,834) (2,472)
$ 39,271  $ 54,137  $ 53,284 
Schedule of Effective Income Tax Rate
The effective tax rate for 2022, 2021, and 2020 reconciled to the statutory U.S. Federal tax rate is as follows:
Year Ended
2022 2021 2020
Statutory U.S. federal income tax rate 21.0  % 21.0  % 21.0  %
State income taxes, net of federal tax benefit 0.4  0.4  0.3 
Permanent tax differences 0.3  0.1  0.2 
Excess foreign tax credits (16.6) (10.9) (9.9)
Net increase in valuation allowance 11.9  10.6  8.2 
Foreign income tax rate differences 9.5  1.8  1.7 
Foreign withholding taxes 9.7  7.9  7.7 
Uncertain tax position reserve 0.5  (0.3) 0.8 
All other, net (0.5) 1.1  (0.1)
36.2  % 31.7  % 29.9  %
Schedule of Deferred Taxes
The significant categories of deferred taxes are as follows:
December 31,
2022		 January 1,
2022
Deferred tax assets
Inventory $ 5,872  $ 5,106 
Accruals not currently deductible 8,627  11,634 
Equity-based compensation expense 2,746  2,355 
Property and equipment 922  1,143 
Intangible assets 6,680  7,545 
Foreign currency translation 1,448  — 
Capitalized R&D Expenses 9,618  2,337 
Tax credit carry forwards 115,539  96,635 
Net operating losses 1,720  1,401 
Other 3,223  4,824 
Gross deferred tax assets 156,395  132,980 
Valuation allowance (118,136) (99,958)
Net deferred tax assets 38,259  33,022 
Deferred tax liabilities
Property and equipment (5,723) (5,268)
Foreign currency translation —  (126)
Prepaid expenses (2,990) (3,596)
Intangible assets (6,680) (7,545)
Withholding tax on unremitted earnings (11,639) (13,556)
Other (5,499) (5,589)
Gross deferred tax liabilities (32,531) (35,680)
Net deferred taxes $ 5,728  $ (2,658)
The components of net deferred taxes on a jurisdiction basis are as follows:
December 31,
2022		 January 1,
2022
Net deferred tax assets $ 9,799  $ 4,839 
Net deferred tax liabilities (4,071) (7,497)
Net deferred taxes $ 5,728  $ (2,658)
Schedule of Unrecognized Tax Benefits Reconciliation
The following reconciliation provides the changes in unrecognized tax benefits for the years presented:
Year Ended
2022 2021 2020
Beginning balance of unrecognized tax benefits $ 1,008  $ 1,528  $ 560 
Increases related to prior year tax positions 107  21  775 
Decreases related to prior year tax positions —  (330) — 
Increases related to current year tax positions 468  424  753 
Decreases for settlements with taxing authorities (133) (635) (560)
Ending balance of unrecognized tax benefits $ 1,450  $ 1,008  $ 1,528