Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Components of Provision for Income Taxes

The components of the provision for income taxes from continuing operations for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands):


	2022		2021		2020
Current:
Federal	$	8,880	$	3,919	$	4,086
State	1,411		856		1,262
Foreign	35		1,066		144
	10,326		5,841		5,492
Deferred:
Federal	(1,050)		(3,318)		(78)
State	(89)		(1,038)		163
Foreign	—		—		21
	(1,139)		(4,356)		106
Provision for income taxes	$	9,187	$	1,485	$	5,598

Effective Income Tax Reconciliation

The differences between the amount of tax computed at the federal statutory rate of 21% in 2022, 2021 and 2020, and the provision for income taxes from continuing operations for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands):


	2022		2021		2020
Tax at statutory federal income tax rate	$	7,822	$	1,985	$	89
Increases (decreases) in tax resulting from:
State taxes, net of federal tax benefit	1,523		383		(52)
Permanent differences, net	(52)		(839)		(1,406)

Tax credits	(579)		(434)		(195)
Prior year true-up adjustment	189		83		397
Valuation allowance	338		331		6,716
Other provision adjustments	(54)		(24)		49
Provision for income taxes	$	9,187	$	1,485	$	5,598

Deferred Tax Assets and Liabilities

The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2022 and 2021 was as follows (in thousands):


	2022		2021

Deferred compensation and accrued paid leave	$	4,552	$	5,422
Accrued Expense	1,158		—
Inventory reserve	12,984		12,465
Operating Lease Liabilities	9,840		7,805
Stock-based compensation	942		775
Interest rate swaps	—		58
Capitalized inventory	1,128		900
US operating and capital loss carryforward	6,040		6,045
Tax credit carryforward	1,537		1,411
Foreign country operating loss carryforward	749		892
Other	278		—
	39,208		35,773
Valuation allowance (1)	(8,337)		(8,257)
Total gross deferred tax assets	30,871		27,516

Interest rate swaps	(1,652)		—
Depreciation	(3,017)		(3,895)
Deferred revenues	(1,087)		(1,358)
Goodwill and intangible assets	(26,226)		(24,836)
Operating Lease Right-of-Use Assets	(8,510)		(6,375)
Other	—		(160)
Total gross deferred tax liabilities	(40,492)		(36,624)

Net deferred tax liabilities	$	(9,621)	$	(9,108)

(1) A valuation allowance was provided against US capital loss in connection with the stock sale of Prime Turbines, certain state net operating loss, tax credit, and foreign tax loss deferred tax assets arising from carryforwards of unused tax benefits.

(2) Certain amounts from prior year have been reclassified to conform with current year presentation.