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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Consolidated loss before income taxes for the years ended December 31, 2022, 2021 and 2020 consisted of the following (in thousands):
202220212020
United States$(22,489)$(56,665)$(534,452)
Foreign18,429 (16,669)123 
Total$(4,060)$(73,334)$(534,329)
The 2021 foreign losses before income taxes included the reclassification of $9.3 million in historical currency translation adjustments upon the liquidation of an international operation, which were not deductible for income tax purposes. Additionally, the 2020 U.S. losses before income taxes included non-cash goodwill impairment charges of $406.1 million. Approximately $313.1 million of the goodwill impairment charges were not deductible for income tax purposes in 2020.
Components of income tax provision (benefit) for the years ended December 31, 2022, 2021 and 2020 consisted of the following (in thousands):
202220212020
Current:
United States$155 $370 $(44,399)
U.S. state1,191 250 235 
Foreign2,114 (1,322)2,622 
3,460 (702)(41,542)
Deferred:
United States266 (7,662)(20,913)
U.S. state(12)(177)(1,798)
Foreign1,766 (800)(1,693)
2,020 (8,639)(24,404)
Total income tax provision (benefit)$5,480 $(9,341)$(65,946)

A reconciliation of the U.S. statutory income tax benefit to the total income tax provision (benefit) for the years ended December 31, 2022, 2021 and 2020 is as follows:
202220212020
U.S. statutory income tax benefit$(853)$(15,400)$(112,209)
Effect of foreign income taxed at different rates1,895 (483)755 
Foreign income subject to U.S. taxes1,876 182 — 
State income taxes, net of federal benefits89 (1,157)(5,833)
Valuation allowances against tax assets19 2,410 1,381 
Non-deductible compensation627 814 484 
Other non-deductible expenses, net1,827 2,336 98 
Release of foreign currency translation adjustments on liquidation of an international operation— 1,957 — 
Impairments of goodwill— — 65,740 
Effect of CARES Act— — (16,362)
Total income tax provision (benefit)$5,480 $(9,341)$(65,946)
The significant items giving rise to the deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in thousands):
20222021
Deferred tax assets:
Foreign tax credit carryforwards$19,237 $20,360 
Net operating loss carryforwards44,955 46,304 
Inventories9,969 10,192 
Operating lease liabilities4,822 5,355 
Employee benefits4,327 5,456 
Other3,357 6,899 
Gross deferred tax asset86,667 94,566 
Valuation allowance(36,749)(37,643)
Net deferred tax asset49,918 56,923 
Deferred tax liabilities:
Tax over book depreciation(21,077)(23,938)
Intangible assets(29,232)(29,671)
Operating lease assets(4,013)(4,355)
Other(731)(718)
Deferred tax liability(55,053)(58,682)
Net deferred tax liability$(5,135)$(1,759)
20222021
Balance sheet classification:
Other non-current assets$1,517 $1,878 
Deferred tax liability(6,652)(3,637)
Net deferred tax liability$(5,135)$(1,759)
On March 27, 2020, the CARES Act was signed into law. In accordance with the rules and provisions under the CARES Act, the Company filed carryback claims regarding U.S. net operating losses generated in 2018 and 2019. Prior to the enactment of the CARES Act, such tax losses could only be carried forward. The Company recognized a discrete tax benefit of $16.4 million and received cash of $41.3 million related to these CARES Act carryback claims in 2020.
The Company had $91.3 million of U.S. federal NOL carryforwards as of December 31, 2022, which can be carried forward indefinitely. Approximately $37.6 million of the U.S. federal NOL carryforwards are attributable to the acquired GEODynamics operations and are subject to certain limitation provisions. The Company's U.S. state NOL carryforwards as of December 31, 2022 totaled $209.3 million, of which $14.6 million are attributable to the acquired GEODynamics operations and are subject to certain limitation provisions. As of December 31, 2022, the Company had NOL carryforwards related to certain of its international operations totaling $43.5 million, of which $14.1 million can be carried forward indefinitely. As of December 31, 2022 and 2021, the Company had recorded valuation allowances of $20.0 million and $20.6 million, respectively, primarily with respect to foreign and U.S. state NOL carryforwards.
As of December 31, 2022 and 2021, the Company's foreign tax credit carryforwards totaled $19.2 million and $20.4 million, respectively. These foreign tax credits will expire in varying amounts from 2023 to 2029. As of December 31, 2022 and 2021, the Company had recorded valuation allowances of $16.7 million and $17.1 million, respectively, with respect to foreign tax credit carryforwards.
The Company files tax returns in the jurisdictions in which they are required. These returns are subject to examination or audit and possible adjustment as a result of assessments by taxing authorities. The Company believes that it has recorded sufficient tax liabilities and does not expect that the resolution of any examination or audit of its tax returns will have a material adverse effect on its consolidated operating results, financial condition or liquidity.
Tax years subsequent to 2013 remain open to U.S. federal tax audit. Foreign subsidiary federal tax returns subsequent to 2012 are subject to audit by various foreign tax authorities.
The total amount of unrecognized tax benefits as of December 31, 2022 and 2021 was nil. The Company accrues interest and penalties related to unrecognized tax benefits as a component of the Company's provision for income taxes. As of December 31, 2022 and 2021, the Company had no accrued interest expense or penalties.