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]  
Summary of Provision for (Benefit from) Income Taxes The provision for (benefit from) income taxes at December 31 consists of the following:
(In thousands) 2022 2021 2020
Current
U.S. Federal $ 5,338  $ (1,713) $ (8,679)
State (153) (667) (4,539)
Foreign 750  1,439  1,036 
Current 5,935  (941) (12,182)
Deferred
U.S. Federal 113  (237) 17,044 
State (239) (87) (92)
Foreign 145  (117) (1,399)
Deferred 19  (441) 15,553 
Total $ 5,954  $ (1,382) $ 3,371 
Summary of Effective Tax Rates Differ From Statutory Federal Income Tax Rate The effective tax rates differ from the statutory federal income tax rate as follows:
2022 2021 2020
Statutory Federal Income Tax Rate 21.0  % 21.0  % 21.0  %
Permanent Items
Stock Compensation Expense (2.2) % (2.1) % (0.3) %
Non Deductible Goodwill Impairment —  % —  % (10.2) %
Contingent Consideration Liability Fair Value Adjustment —  % 1.7  % —  %
Other (0.3) % (0.7) % —  %
Foreign Tax Rate Differential (2.8) % (2.7) % (1.0) %
State Income Tax, Net of Federal Income Tax Effect 1.0  % 2.2  % 3.3  %
Research and Development Tax Credits 7.7  % 12.8  % 2.2  %
Change in Valuation Allowance (44.6) % (29.8) % (19.2) %
Net GILTI and FDII Tax Expense 1.8  % —  % —  %
Foreign Tax Credit for Dividend Withholding (1.5) % 1.7  % —  %
Tax Rate Change on 2020 Federal Net Operating Loss Carryback —  % 0.9  % 1.3  %
Other (0.1) % 0.1  % (0.1) %
Effective Tax Rate (20.0) % 5.1  % (3.0) %
Summary of Significant Components of Company's Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities at December 31, are as follows:
(In thousands) 2022 2021
Deferred Tax Assets:
Asset Reserves $ 17,680  $ 17,462 
Deferred Compensation 6,798  7,424 
Section 163(j) - Interest Expense Limitation —  891 
State Investment and Research and Development Tax Credit Carryforwards, Net of Federal Tax 1,128  4,674 
Customer Advanced Payments and Deferred Revenue 1,917  1,301 
Net Operating Loss Carryforwards and Other 11,307  15,617 
Goodwill and Intangible Assets 1,277  1,082 
ASC 606 Revenue Recognition 197  1,817 
Research & Development Costs 19,892  — 
Lease Liabilities 3,201  4,178 
Other 6,135  5,540 
Total Gross Deferred Tax Assets 69,532  59,986 
Valuation Allowance for Federal and State Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax (57,369) (43,519)
Deferred Tax Assets 12,163  16,467 
Deferred Tax Liabilities:
Depreciation 8,886  9,393 
ASC 606 Revenue Recognition - Section 481(a) Adjustment 525  1,030 
Lease Assets 2,905  3,539 
Earnout Income Accrual —  2,603 
Other 1,005  1,050 
Deferred Tax Liabilities 13,321  17,615 
Net Deferred Tax Liabilities $ (1,158) $ (1,148)
Summary of Components of Net Deferred Tax Assets and Liabilities The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31:
(In thousands) 2022 2021
Other Assets — Long-term $ 712  $ 273 
Deferred Tax Liabilities — Long-term (1,870) (1,421)
Net Deferred Tax Liabilities $ (1,158) $ (1,148)
Summary of Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties
(in thousands) 2022 2021 2020
Balance at Beginning of the Year $ 1,412  $ 1,890  $ 2,565 
Decreases as a Result of Tax Positions Taken in Prior Years (969) (478) (775)
Increases as a Result of Tax Positions Taken in the Current Year —  —  100 
Balance at End of the Year $ 443  $ 1,412  $ 1,890