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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Consolidated income (loss) before income taxes for the years ended December 31, 2024, 2023 and 2022 consisted of the following (in thousands):
202420232022
United States$(27,024)$3,793 $(22,489)
Foreign19,172 12,031 18,429 
Total$(7,852)$15,824 $(4,060)
Components of income tax provision for the years ended December 31, 2024, 2023 and 2022 consisted of the following (in thousands):
202420232022
Current:
United States$— $— $155 
U.S. state555 1,135 1,191 
Foreign5,207 1,572 2,114 
5,762 2,707 3,460 
Deferred:
United States(1,822)2,061 266 
U.S. state(281)(721)(12)
Foreign(253)(1,114)1,766 
(2,356)226 2,020 
Total income tax provision$3,406 $2,933 $5,480 
A reconciliation of the U.S. statutory income tax provision (benefit) to the total income tax provision for the years ended December 31, 2024, 2023 and 2022 is as follows:
202420232022
U.S. statutory income tax provision (benefit)$(1,649)$3,323 $(853)
Impairment of goodwill
1,619 — — 
Effect of foreign income taxed at different rates1,400 (425)1,895 
Foreign income subject to U.S. taxes1,214 931 1,876 
Utilization of U.S. foreign tax credits
(1,373)(1,460)(291)
State income taxes, net of federal benefits502 962 89 
Changes in valuation allowances against tax assets (see Note 16)
760 (2,010)19 
Non-deductible compensation1,449 1,390 627 
Other, net
(516)222 2,118 
Total income tax provision$3,406 $2,933 $5,480 
The significant items giving rise to the deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows (in thousands):
20242023
Deferred tax assets:
Foreign tax credit carryforwards$3,423 $12,614 
Net operating loss carryforwards14,147 21,065 
R&D credit carryforwards
3,880 2,895 
Inventories8,456 11,523 
Operating lease liabilities4,337 4,334 
Employee benefits4,292 4,442 
Deferred revenue
8,088 6,437 
Other7,835 7,569 
Gross deferred tax asset54,458 70,879 
Valuation allowance (see Note 16)
(22,088)(29,638)
Net deferred tax asset32,370 41,241 
Deferred tax liabilities:
Property, plant and equipment
(8,895)(14,337)
Intangible assets(21,009)(26,542)
Operating lease assets(3,108)(3,632)
Other(2,744)(2,236)
Deferred tax liability(35,756)(46,747)
Net deferred tax liability$(3,386)$(5,506)
20242023
Balance sheet classification:
Other non-current assets$1,964 $2,211 
Deferred tax liability(5,350)(7,717)
Net deferred tax liability$(3,386)$(5,506)
The Company had U.S. state NOL carryforwards as of December 31, 2024 totaling $161.1 million, of which $8.9 million were attributable to the acquired GEODynamics operations and subject to certain limitation provisions. As of December 31, 2024, the Company had NOL carryforwards related to certain of its international operations totaling $27.9 million, of which $7.4 million can be carried forward indefinitely. As of December 31, 2024 and 2023, the Company had recorded valuation allowances of $13.9 million and $17.7 million, respectively, primarily with respect to foreign and U.S. state NOL carryforwards.
As of December 31, 2024 and 2023, the Company’s foreign tax credit carryforwards totaled $3.4 million and $12.6 million, respectively. During 2024 and 2023, $4.3 million and $5.0 million, respectively, of the Company’s foreign tax credits expired, and the offsetting valuation allowances were reduced. The remaining foreign tax credits will expire, if unused, in varying amounts from 2025 to 2029. As of December 31, 2024 and 2023, the Company had recorded valuation allowances of $3.4 million and $11.9 million, respectively, with respect to foreign tax credit carryforwards.
As of December 31, 2024 and 2023, the Company’s U.S. research and development tax credit carryforwards totaled $3.9 million and $2.9 million, respectively, which will expire, if unused, between 2032 and 2044. As of December 31, 2024, the Company had a valuation allowance of $2.0 million (nil as of December 31, 2023) with respect to research and development 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 2018 are subject to audit by various foreign tax authorities.
The total amount of unrecognized tax benefits as of December 31, 2024 and 2023 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, 2024 and 2023, the Company had no accrued interest expense or penalties.