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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
(Loss) income before tax was as follows:
Years ended December 31,
20222021
United States$(235,215)$(9,262)
Foreign(56,643)3,541 
Loss before tax$(291,858)$(5,721)

Significant components of income tax (benefit) expense consist of the following:
Years ended December 31,
20222021
Current:
Federal
$— $— 
State
100 72 
Foreign
2,767 1,787 
Total current expense
2,867 1,859 
Deferred:
Federal
(8,689)(18,275)
State
(2,980)(1,962)
Foreign
2,359 (759)
Total deferred benefit
(9,310)(20,996)
Total income tax benefit
$(6,443)$(19,137)
The reconciliation of income tax computed at the U.S. federal statutory tax rates of 21% to income tax benefit consists of the following:
Years ended December 31,
20222021
Effective rate reconciliation
U.S. federal tax benefit at statutory rate
$(61,290)$(1,201)
State income taxes, net
422 68 
Permanent items
3,785 542 
Goodwill impairment23,170 — 
Global intangible low-taxed income
— 972 
Foreign rate differential
(443)1,032 
162(m) officers compensation
1,010 6,969 
Share-based compensation
26 (8,118)
Deferred adjustments
770 67 
Transaction costs
— 2,290 
Other, net
2,410 (973)
Valuation allowance
23,697 (20,785)
Total income tax benefit
$(6,443)$(19,137)
Deferred income tax assets and liabilities consist of the following:
December 31,
20222021
Deferred tax assets
Lease liabilities
$17,079 $11,714 
Accrued expenses
1,453 1,215 
Share-based compensation
865 460 
Intangible assets
2,110 — 
Net operating loss
31,425 19,543 
Inventories
6,346 4,948 
Interest expense
4,183 2,154 
Other
1,130 1,243 
Deferred tax assets
64,591 41,277 
Valuation allowance
(39,293)(14,892)
Total deferred tax assets
25,298 26,385 
Deferred tax liabilities
Intangible assets— (17,526)
Property, plant and equipment
(10,216)(2,518)
Operating lease right-of-use assets
(17,767)(11,579)
Total deferred tax liabilities(27,983)(31,623)
Net deferred tax liability
$(2,685)$(5,238)
Other long-term assets - deferred tax assets$— $393 
Long-term deferred tax liabilities(2,685)(5,631)
Net deferred tax liability$(2,685)$(5,238)
As of December 31, 2022, the Company had federal and state net operating loss (“NOL”) carryforwards of approximately $107,100 and $80,800, respectively. The federal and state NOL carryforwards, if not utilized, will begin to expire in 2037 and 2027, respectively, and $93,400 of the federal losses are indefinite. As of December 31, 2021, the Company had federal and state NOL carryforwards of approximately $74,900 and $56,900, respectively. Foreign NOL carryforwards were approximately $15,900 and $1,000 at December 31, 2022, and 2021, respectively. The majority of the foreign NOLs have a 20 year carryforward period.
The Company determined the amount of its valuation allowance based on estimates regarding the timing and amount of the reversal of taxable temporary differences, expected future taxable income by jurisdiction, and the impact of tax planning strategies. As of December 31, 2022, and 2021, the Company believes it is more-likely-than-not that it will not be able to realize its U.S. deferred tax assets and therefore has maintained a full valuation allowance against its U.S. deferred tax assets. The Company has also provided valuation allowances against certain foreign deferred tax assets.
The Company's effective tax rate differs from the U.S. federal statutory rate primarily due discrete tax benefits relating primarily to measurement period adjustments associated with 2021 acquisitions, the impairment of goodwill for certain 2021 acquisitions which was not deductible for U.S. tax purposes, increases in the Company's valuation allowance on U.S. deferred tax assets, and the establishment of a valuation allowance for Canadian deferred tax assets. In connection with the measurement period adjustments associated with 2021 acquisitions, the Company recorded a net deferred tax liability which provided an additional source of taxable income to support the realization of the pre-existing deferred tax assets. The Company's income tax benefit was partially offset by income taxes from certain foreign subsidiaries.
Carryforwards of NOLs are subject to possible limitation should a change in ownership occur, as defined by Internal Revenue Code Section 382. An ownership change is generally defined as a greater than 50% increase in equity ownership by 5% stockholders in any three-year period. The Company experienced an aggregate ownership change which exceeded the 50% threshold in connection with the Company's IPO, and future changes in stock ownership may occur. To the extent that the Company earns net taxable income, the Company's ability to use NOLs to offset such taxable income may be subject to limitations. The annual limitation resulting from the IPO ownership change is not expected to result in the expiration of the NOL carry forwards before utilization.
In 2022 and 2021, the Company did not record any liabilities related to uncertain tax positions. The Company does not have any tax positions for which it is reasonably possible that the total amount of gross unrecognized tax benefits will significantly change within 12 months of December 31, 2022, and 2021. The Company recognizes interest and penalties relating to unrecognized tax benefits as part of its income tax expense. The Company’s major filing jurisdictions are the United States and Canada. Due to the Company’s net operating loss carryforwards, the Company’s income tax returns remain subject to examination by federal, foreign and most state taxing authorities for all tax years.