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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income before income taxes are as follows (in thousands):
 Years Ended December 31,
 202320222021
Domestic$79,785 $59,736 $9,897 
Foreign7,146 6,165 9,285 
Total income before taxes$86,931 $65,901 $19,182 
The provision for income taxes consisted of the following (in thousands):
 Years Ended December 31,
 202320222021
Current -   
Federal$22,514 $18,591 $(5,243)
State2,620 4,501 (522)
Foreign2,044 2,248 3,056 
Total current27,178 25,340 (2,709)
Deferred -   
Federal(7,679)(5,875)5,016 
State(1,133)(1,083)1,810 
Foreign(247)(583)(686)
Total deferred(9,059)(7,541)6,140 
Total current and deferred taxes$18,119 $17,799 $3,431 
The difference between income taxes computed at the statutory income tax rate and the provision for income taxes is as follows (in thousands):
 Years Ended December 31,
 202320222021
Income taxes computed at federal statutory rate$18,255 $13,839 $4,028 
State income taxes, net of federal benefit1,669 2,701 1,017 
Foreign taxes144 122 186 
Nondeductible expenses2,670 1,158 353 
Enacted rate changes(58)240 318 
Research and development tax credit(4,811)(250)(1,036)
Valuation allowance274 (1)1 
Tax reform deferred tax remeasurement— — (2,587)
Uncertain tax positions(33)271 871 
Other9 (281)280 
Total income tax expense
$18,119 $17,799 $3,431 
Deferred tax liabilities and assets were comprised of the following (in thousands):
December 31,
 20232022
Deferred tax assets: 
Allowance for doubtful accounts$879 $1,570 
Inventory3,371 4,585 
Texas research and development tax credit carryforward2,239 2,329 
   Louisiana research and development tax credit carryforward10 10 
Foreign tax credit carryforward64 64 
Net operating loss carryforward1,328 1,201 
Capital loss carryforward4 4 
Accruals8,190 6,190 
ROU asset220 219 
Research expenses23,822 16,945 
Total deferred tax assets40,127 33,117 
Less valuation allowance(278)(4)
Total deferred tax asset, net of valuation allowance39,849 33,113 
Deferred tax liabilities:
Goodwill(18,476)(18,439)
Intangibles(8,363)(9,553)
Property and equipment(7,885)(8,542)
Deferred compensation(215)— 
Unremitted foreign earnings(421)(421)
Method changes(342)(225)
Other(643)(825)
Total deferred tax liability
$(36,345)$(38,005)
Net deferred tax asset (liability)
$3,504 3504000$(4,892)
The Company records a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions. If the Company was to determine that it would be able to realize the deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. As of December 31, 2023, the valuation allowance primarily relates to state operating loss and foreign capital loss carryforwards.

The following summarizes changes in the balance of valuation allowances on deferred tax assets (in thousands):

  202320222021
Balance at January 1$(4)$(4)$(12,813)
Changes due to state operating loss and foreign capital loss carryforwards
(274)— 12,809 
Balance at December 31$(278)$(4)$(4)
Expected tax benefit on carryforwards available for use on future income tax returns, prior to valuation allowance, at December 31, 2023, are as follows (in thousands):

  Domestic  ForeignExpiration
Net operating loss - foreign$— $491 2034-2042
Net operating loss - federal562 — 2036-2042
Net operating loss - state
338 — Indefinite
Capital loss carryforward - foreign— 4 Indefinite
Foreign tax credits64 — 2023,2025
Texas research and development tax credits2,239 — 2037-2042
Louisiana research and development tax credits$10 $— 2024-2026

Changes in the balance of unrecognized tax benefits excluding interest and penalties on uncertain tax positions are as follows (in thousands):

  Assets (Liabilities)
  202320222021
Balance at January 1,$(5,918)$(6,316)$(5,057)
   Increases related to prior year tax positions— — (687)
   Decreases related to prior year tax positions1,475 614 — 
   Increases related to current year tax positions(1,312)(216)(572)
Balance at December 31,$(5,755)$(5,918)$(6,316)

As of December 31, 2023, the Company had recorded a total tax benefit of $28.1 million related to federal and state research and development tax credits. This benefit is partially offset by $5.6 million uncertain tax position due to the uncertainty related to the realizability of the federal research and development tax credits. The Company is also recording a $0.1 million uncertain tax position related to non-deductible auto expense compensation.

To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts are classified as a component of income tax provision (benefit) in the consolidated financial statements consistent with the Company's policy. For the year ended December 31, 2023, the Company recorded $0.2 million tax expense for interest and penalties related to uncertain tax positions.

The Company is subject to taxation in the U.S., various states, and foreign jurisdictions. The Company has significant operations in the U.S. and Canada and to a lesser extent in various other international jurisdictions. Tax years that remain subject to examination vary by legal entity but are generally closed in the U.S. for the tax years prior to 2015 and outside the U.S. for the tax years ended prior to 2018. There is a 4 year statute of limitations for Canadian returns based on the date tax assessment is received, not filing date. Tax assessments are typically received within weeks of filing date.