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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Pre-tax income (loss) consisted of the following for the years ended December 31:
202220212020
Domestic $(30,401)$9,476 $(55,907)
Foreign29,334 22,649 11,407 
Total$(1,067)$32,125 $(44,500)
A reconciliation of income taxes computed at the statutory rates to the reported income tax provision for the years ended December 31 follows:
202220212020
Federal (benefit) provision at statutory rate $(224)$6,746 $(9,345)
U.S./Foreign tax rate differential2,320 696 492 
Foreign non-deductible expenses(1,084)515 702 
Foreign tax provision1,734 739 611 
State taxes, net of federal benefit (297)315 (1,086)
State tax rate change, net of federal benefit(33)(432)— 
Change in uncertain tax positions38 74 71 
Change in valuation allowance14,776 366 2,146 
Tax credits(1,244)(1,341)(143)
Share-based compensation(91)(857)(15)
Executive compensation (IRC 162m)871 1,128 — 
Repatriation of foreign earnings1,245 208 37 
GILTI, net of related foreign tax credit365 39 (1,340)
Pension settlement3,394 — — 
Other(866)197 419 
(Benefit) Provision for income taxes$20,904 $8,393 $(7,451)

The provision (benefit) for income taxes for the years ended December 31 follows:
202220212020
CurrentDeferredTotalCurrentDeferredTotalCurrentDeferredTotal
Federal $(338)$16,831 $16,493 $46 $2,377 $2,423 $109 $(10,975)$(10,866)
State and local 276 4,039 4,315 152 (439)(287)120 (559)(439)
Foreign8,486 (8,390)96 6,126 131 6,257 4,449 (595)3,854 
Total$8,424 $12,480 $20,904 $6,324 $2,069 $8,393 $4,678 $(12,129)$(7,451)
A summary of deferred income tax assets and liabilities as of December 31 follows:
20222021
Noncurrent deferred tax assets:
Amortization and fixed assets$9,653 $7,371 
Inventories8,514 3,914 
Pension obligations2,182 2,599 
Warranty obligations242 354 
Accrued benefits465 400 
Operating leases7,595 3,917 
Tax credit carryforwards6,703 7,106 
Net operating loss carryforwards11,809 14,944 
Other temporary differences3,797 5,483 
Total noncurrent deferred tax assets$50,960 $46,088 
Valuation allowance(31,090)(18,371)
Net noncurrent deferred tax assets$19,870 $27,717 
Noncurrent deferred tax liabilities:
Amortization and fixed assets$(827)$(968)
Inventories127 103 
Operating leases(7,585)(3,596)
Other temporary differences(287)(315)
Total noncurrent tax liabilities(8,572)(4,776)
Net noncurrent deferred tax liabilities$(8,572)$(4,776)
Total net deferred tax asset$11,298 $22,941 
Deferred taxes are reflected in the Consolidated Balance Sheet as follows:
Net non-current deferred tax assets$12,275 $24,108 
Non-current deferred tax liabilities (included in Other long-term liabilities)$(977)$(1,167)
Total net deferred tax asset$11,298 $22,941 
We assess whether valuation allowances should be established against deferred tax assets based on consideration of all available evidence using a “more likely than not” standard. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carryforward periods, our experience with unused tax attributes expiring and tax planning alternatives. In making such judgments, significant weight is given to evidence that can be objectively verified. The Company believes that significant uncertainty exists with respect to the future realization of our U.S. deferred tax assets and has therefore established a full valuation allowance as of December 31, 2022. Separately, the Company reversed the valuation allowance on its U.K. deferred tax assets as it believes that the weight of the positive evidence, including the cumulative income position in the three most recent years and forecasts for a sustained level of future taxable income, was sufficient to overcome the weight of the negative evidence during the year ended December 31, 2022.

During 2022, we recorded an additional valuation allowance of $24.5 million primarily related to establishing a full valuation allowance on our U.S. deferred tax assets, and released $11.8 million in valuation allowances, $9.9 million of which related to the deferred tax assets of our U.K. subsidiary. We expect to be able to realize the benefits of all of our deferred tax assets that are not currently offset by a valuation allowance, as discussed above. In the event that our actual results differ from our estimates or we adjust these estimates in future periods, the effects of these adjustments could materially impact our financial position and results of operations.
Activity for the years ended December 31 is as follows (in thousands):
202220212020
Balance - Beginning of the year$18,371 $16,441 $11,992 
Provisions24,506 2,529 4,511 
Utilizations(11,787)(599)(62)
Balance - End of the year$31,090 $18,371 $16,441 

As of December 31, 2022, the Company had net operating loss carryforwards of $90.5 million, of which $39.8 million related to foreign jurisdictions and $50.7 million related to U.S. state jurisdictions. The carryforward periods for these net operating losses range from five years to indefinite. Utilization of these losses is subject to the tax laws of the applicable tax jurisdiction and may be limited by the ability of certain subsidiaries to generate taxable income in the associated tax jurisdiction. We have established valuation allowances for all net operating losses that we believe are more likely than not to expire before they can be utilized.
As of December 31, 2022, we had $5.0 million of U.S. foreign tax credit carryforwards, primarily attributable to the deemed repatriation of the accumulated untaxed earnings of our foreign subsidiaries resulting from the U.S. Tax Reform. Utilization of these credits may be limited if the Company does not generate sufficient U.S. federal taxable income in future years. The credits begin to expire in 2027. We have established valuation allowances for all foreign tax credits that we believe are more likely than not to expire before they can be utilized.
As of December 31, 2022, we had $1.7 million of research and development tax credit carryforwards related to our U.S. operations. Utilization of these credits may be limited if the Company does not generate sufficient U.S. federal taxable income in future years. The credits begin to expire in 2032. We have established valuation allowances for all foreign tax credits that we believe are more likely than not to expire before they can be utilized.
As of December 31, 2022, cash of $31.7 million was held by foreign subsidiaries. During the year ended December 31, 2022, $11.7 million was repatriated from the Company's foreign subsidiaries. The Company had a $0.5 million deferred tax liability as of December 31, 2022 for the expected future income tax implications of repatriating cash from the foreign subsidiaries for which no indefinite reinvestment assertion has been made.
We file federal income tax returns in the U.S. and income tax returns in various states and foreign jurisdictions. In the U.S., we are generally no longer subject to tax assessment for tax years prior to 2017. In our major non-U.S. jurisdictions including China, Czech Republic, Mexico and the United Kingdom, tax years are typically subject to examination for three to five years.

As of December 31, 2022, and 2021, we provided a liability of $1.1 million and $1.1 million, respectively, for unrecognized tax benefits associated with our U.S. federal and state, and foreign jurisdictions. The majority of these unrecognized tax benefits are netted against their related non-current deferred tax assets.
We accrue interest and penalties related to unrecognized tax benefits through income tax expense. We had $0.9 million and $0.5 million accrued for the payment of interest and penalties as of December 31, 2022 and December 31, 2021, respectively. Accrued interest and penalties are included in the $1.1 million of unrecognized tax benefits.
A reconciliation of the beginning and ending amount of unrecognized tax benefits (including interest and penalties) at December 31 follows:
202220212020
Balance - Beginning of the year $1,093 $1,006 $908 
Gross increase - tax positions in prior periods 426 75 73 
Gross decreases - tax positions in prior periods — — — 
Lapse of statute of limitations(389)— — 
Currency translation adjustment(41)12 25 
Balance - End of the year $1,089 $1,093 $1,006