Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Components of Provision for Income Taxes

The components of the provision for income taxes from continuing operations for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


	2023		2022		2021
Current:
Federal	$	11,556	$	9,483	$	(8)
State	2,205		1,485		(193)
Foreign	1,138		35		1,066
	14,899		11,003		865
Deferred:
Federal	(1,148)		(1,890)		(3,600)
State	3		(61)		(1,033)
Foreign	7		—		—
	(1,138)		(1,951)		(4,633)
Provision for income taxes	$	13,761	$	9,052	$	(3,768)

Effective Income Tax Reconciliation

The differences between the amount of tax computed at the federal statutory rate of 21% in 2023, 2022 and 2021, and the provision for income taxes from continuing operations for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):


	2023		2022		2021
Tax at statutory federal income tax rate	$	11,952	$	7,499	$	(3,102)
Increases (decreases) in tax resulting from:
State taxes, net of federal tax benefit	2,019		1,459		(482)
Permanent differences, net	(193)		287		(350)

Tax credits	(461)		(418)		(160)
Prior year true-up adjustment	269		(45)		19
Valuation allowance	77		324		331
Other provision adjustments	98		(54)		(24)
Provision for income taxes	$	13,761	$	9,052	$	(3,768)

Deferred Tax Assets and Liabilities

The tax effect of temporary differences representing deferred tax assets and liabilities as of December 31, 2023 and 2022 was as follows (in thousands):


	2023		2022
Deferred compensation and accrued paid leave	$	3,003	$	3,881
Accrued expense	1,429		1,053
Inventory reserve	13,980		12,934
Operating lease liabilities	6,249		5,544
Stock-based compensation	1,697		869
Capitalized inventory	1,335		1,128
US operating and capital loss carryforward	7,637		6,040
Disallowed interest expense	1,663		236
Tax credit carryforward	1,492		1,640
Foreign country operating loss carryforward	806		749
	39,291		34,074
Valuation allowance (a)	(9,906)		(8,337)
Total gross deferred tax assets	29,385		25,737

Interest rate swaps	(708)		(1,651)
Depreciation	(2,925)		(3,091)
Goodwill and intangible assets	(26,666)		(20,355)
Operating lease right-of-use assets	(5,939)		(5,313)
Other	(132)		(86)
Total gross deferred tax liabilities	(36,370)		(30,496)

Net deferred tax liabilities	$	(6,985)	$	(4,759)
(a) 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.
(b) Certain amounts from prior year have been reclassified to conform with current year presentation.