XML 35 R19.htm IDEA: XBRL DOCUMENT v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Consolidated income (loss) before income taxes for the years ended December 31, 2023, 2022 and 2021 consisted of the following (in thousands):
202320222021
United States$3,793 $(22,489)$(56,665)
Foreign12,031 18,429 (16,669)
Total$15,824 $(4,060)$(73,334)
The 2021 foreign losses before income taxes included the reclassification of $9.3 million in historical currency translation adjustments upon the liquidation of an international operation, which were not deductible for income tax purposes.
Components of income tax provision (benefit) for the years ended December 31, 2023, 2022 and 2021 consisted of the following (in thousands):
202320222021
Current:
United States$— $155 $370 
U.S. state1,135 1,191 250 
Foreign1,572 2,114 (1,322)
2,707 3,460 (702)
Deferred:
United States2,061 266 (7,662)
U.S. state(721)(12)(177)
Foreign(1,114)1,766 (800)
226 2,020 (8,639)
Total income tax provision (benefit)$2,933 $5,480 $(9,341)
A reconciliation of the U.S. statutory income tax benefit to the total income tax provision (benefit) for the years ended December 31, 2023, 2022 and 2021 is as follows:
202320222021
U.S. statutory income tax provision (benefit)$3,323 $(853)$(15,400)
Effect of foreign income taxed at different rates(425)1,895 (483)
Foreign income subject to U.S. taxes931 1,876 182 
Utilization of U.S. foreign tax credits
(1,460)(291)— 
State income taxes, net of federal benefits962 89 (1,157)
Changes in valuation allowances against tax assets (see Note 16)
(2,010)19 2,410 
Non-deductible compensation1,390 627 814 
Other non-deductible expenses, net
222 2,118 2,336 
Release of foreign currency translation adjustments on liquidation of an international operation— — 1,957 
Total income tax provision (benefit)$2,933 $5,480 $(9,341)
The significant items giving rise to the deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in thousands):
20232022
Deferred tax assets:
Foreign tax credit carryforwards$12,614 $19,237 
Net operating loss carryforwards23,960 44,955 
Inventories11,523 9,969 
Operating lease liabilities4,334 4,822 
Employee benefits4,442 4,327 
Deferred revenue
6,437 — 
Other5,770 3,357 
Gross deferred tax asset69,080 86,667 
Valuation allowance (see Note 16)
(29,638)(36,749)
Net deferred tax asset39,442 49,918 
Deferred tax liabilities:
Tax over book depreciation(14,337)(21,077)
Intangible assets(26,542)(29,232)
Operating lease assets(3,632)(4,013)
Other(437)(731)
Deferred tax liability(44,948)(55,053)
Net deferred tax liability$(5,506)$(5,135)
20232022
Balance sheet classification:
Other non-current assets$2,211 $1,517 
Deferred tax liability(7,717)(6,652)
Net deferred tax liability$(5,506)$(5,135)
The Company had $10.7 million of U.S. federal NOL carryforwards as of December 31, 2023, which can be carried forward indefinitely. The Company’s U.S. state NOL carryforwards as of December 31, 2023 totaled $184.6 million, of which $8.6 million are attributable to the acquired GEODynamics operations and are subject to certain limitation provisions. As of December 31, 2023, the Company had NOL carryforwards related to certain of its international operations totaling $31.3 million, of which $15.6 million can be carried forward indefinitely. As of December 31, 2023 and 2022, the Company had recorded valuation allowances of $17.7 million and $20.0 million, respectively, primarily with respect to foreign and U.S. state NOL carryforwards.
As of December 31, 2023 and 2022, the Company’s foreign tax credit carryforwards totaled $12.6 million and $19.2 million, respectively. During 2023, $5.0 million of the Company’s foreign tax credits expired, and the offsetting valuation allowances were reduced. The remaining foreign tax credits will expire in varying amounts from 2024 to 2029. As of December 31, 2023 and 2022, the Company had recorded valuation allowances of $11.9 million and $16.7 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 (except for 2016) 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, 2023 and 2022 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, 2023 and 2022, the Company had no accrued interest expense or penalties.