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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
 
As a partnership, we are generally not subject to income taxes at the entity level, and our partners are separately taxed on their share of our taxable income. However, a portion of our business is conducted through taxable U.S. corporate subsidiaries. Accordingly, a U.S. federal and state income tax provision has been reflected in the accompanying statements of operations. State tax expense relating to the Texas franchise tax liability is included in the provision for income taxes. Certain of our operations are located outside of the United States, and the Partnership, through its foreign subsidiaries, is responsible for income taxes in these countries.


The income tax provision (benefit) attributable to our operations for the years ended December 31, 2023 and 2022, consists of the following:
 Year Ended December 31,
 20232022
 (In Thousands)
Current  
Federal
$— $— 
State
630 827 
Foreign
2,800 3,583 
 3,430 4,410 
Deferred  
Federal
— (5)
State
1,176 2 
Foreign
(833)379 
 343 376 
Total tax provision$3,773 $4,786 
 
A reconciliation of the provision for income taxes computed by applying the federal statutory rate to income (loss) before income taxes and the reported income taxes is as follows: 
 Year Ended December 31,
 20232022
 (In Thousands)
Income (loss) tax provision computed at statutory federal income tax rates$(1,199)$(3,671)
Partnership (earnings) losses1,199 3,671 
Corporate subsidiary earnings (loss) subject to federal tax(1,470)(1,141)
Valuation allowances4,094 896 
Income tax expense attributable to foreign earnings(621)3,277 
State income taxes (net of federal benefit)1,515 1,681 
Other255 73 
Total tax provision$3,773 $4,786 
Income (loss) before income tax provision includes the following components: 
 Year Ended December 31,
 20232022
 (In Thousands)
United States$(2,922)$(26,788)
International(2,785)9,306 
Total
$(5,707)$(17,482)
    
We file U.S. federal, state, and foreign income tax returns on behalf of all of our consolidated subsidiaries. With few exceptions, we are not subject to U.S. federal, state, local, or non-U.S. income tax examinations by tax authorities for years prior to 2016. We file tax returns in the U.S. and in various state, local and non-U.S. jurisdictions. The following table summarizes the earliest tax years that remain subject to examination by taxing authorities in any major jurisdiction in which we operate:
JurisdictionEarliest Open Tax Period
United States – Federal2017
United States – State and Local2017
Non-U.S. jurisdictions2016
 
We use the liability method for reporting income taxes, under which current and deferred tax assets and liabilities are recorded in accordance with enacted tax laws and rates. Under this method, at the end of each period, the amounts of deferred tax assets and liabilities are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. We establish a valuation allowance to reduce the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. While we consider taxable income in prior carryback years, future reversals of existing taxable temporary differences, future taxable income, and tax planning strategies in assessing the need for the valuation allowance, there can be no guarantee that we will be able to realize all of our deferred tax assets. Significant components of our deferred tax assets and liabilities are as follows:
 
 December 31, 2023December 31, 2022
Deferred Tax Assets(In Thousands)
Other - Reserves$13 $54 
Amortization for book in excess of tax expense
13,482 15,802 
Accruals
1,016 1,197 
Net operating losses
36,323 29,867 
Accruals - Right of use liability3,948 3,264 
Other - Plant, property, and equipment1,283 1,251 
Other
4,273 3,515 
Total deferred tax assets
60,338 54,950 
Valuation allowance
(34,074)(30,273)
Net deferred tax assets
$26,264 $24,677 
 
 December 31, 2023December 31, 2022
Deferred Tax Liabilities(In Thousands)
Accruals
$504 $1,476 
Depreciation for tax in excess of book expense
23,016 20,604 
Right-of-use Asset
3,855 3,213 
Other - Intangibles78 87 
Other - Reserves194 217 
Other368 329 
Total deferred tax liability
28,015 25,926 
Net deferred tax liability
$1,751 $1,249 

At December 31, 2023, we have federal, state, and foreign net operating loss carryforwards/carrybacks equal to approximately $28.4 million, $2.9 million, and $5.0 million, respectively. In those foreign jurisdictions and states in which net operating losses are subject to an expiration period, our loss carryforwards, if not utilized, will expire from 2023 to 2042. Utilization of the net operating loss and credit carryforwards may be subject to a significant annual limitation due to ownership changes that have occurred previously or could occur in the future provided by Section 382 of the Internal Revenue Code of 1986, as amended.
 
 
    The valuation allowance increased $3.8 million and $2.5 million during the year ended December 31, 2023 and December 31, 2022, respectively, primarily due to the increase in deferred tax assets as a result of losses generated by our U.S. corporate subsidiaries.

    ASC 740, “Income Taxes” provides guidance on measurement and recognition in accounting for income tax uncertainties and provides related guidance on derecognition, classification, disclosure, interest, and penalties. As of December 31, 2023 and 2022, the Partnership had no material unrecognized tax benefits (as defined in ASC 740-10). We do not expect to incur interest charges or penalties related to our tax positions, but if such charges or penalties are incurred, our policy is to account for interest charges as interest expense and penalties as tax expense in the consolidated statements of operations.