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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

The components of our tax provision and benefit on continuing operations were as follows (in thousands):


	Current		Deferred		Total
Twelve months ended December 31, 2022:
U.S. Federal	$	(211)	$	—	$	(211)
State & local	513		—		513
Foreign jurisdictions	1,319		1,685		3,004
Tax provision	$	1,621	$	1,685	$	3,306
Twelve months ended December 31, 2021:
U.S. Federal	$	938	$	(1,115)	$	(177)
State & local	590		150		740
Foreign jurisdictions	2,494		5,716		8,210
Tax provision	$	4,022	$	4,751	$	8,773

Components of Pre-Tax Income (Loss)

The components of pre-tax income (loss) from continuing operations for the years ended December 31, 2022 and 2021 were as follows (in thousands):


	Twelve Months Ended December 31,
	2022		2021
Domestic	$	(156,001)	$	(171,299)
Foreign	9,220		(4,773)
Pre-tax income (loss) from continuing operations	$	(146,781)	$	(176,072)

Income Tax Expense (Benefit) Attributable to Income (Loss) from Continuing Operations Differed from Amounts Computed by Federal Income Tax Rate

The income tax provision in 2022 and provision in 2021 attributable to the loss from continuing operations, respectively, differed from the amounts computed by applying the U.S. federal income tax rate 21% in 2022, (21% in 2021) to pre-tax loss from continuing operations as a result of the following (in thousands):


	Twelve Months Ended December 31,
	2022		2021
Pre-tax loss from continuing operations	$	(146,781)	$	(176,072)
Computed income taxes at statutory rate	(30,824)		(36,975)
State income taxes, net of federal benefit	395		561
Foreign tax rate differential	701		1,380
Non-cash compensation	228		320
Deferred taxes on investment in foreign subsidiaries	—		(1,939)

Non-deductible expenses	118		229
Foreign withholding	693		1,078
Prior year tax adjustments	7		141



Goodwill impairment	—		9,399

Valuation allowance	31,430		34,284

Rate change	—		(140)
Other	558		435
Total expense (benefit) for income tax on continuing operations	$	3,306	$	8,773

Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Accrued compensation and benefits	$	7,630	$	7,831
Receivables	552		1,345
Inventory	296		316
Share based compensation	258		271

Other accrued liabilities	2,940		3,467
Tax credit carry forward	2,314		3,613
Interest expense limitation	28,137		22,312
Goodwill and intangible costs	10,143		9,221
Convertible debt	1,780		—
Net operating loss carry forwards	38,860		68,972
Other	1,770		2,428
Deferred tax assets	94,680		119,776
Less: Valuation allowance	(73,483)		(89,191)
Deferred tax assets, net	$	21,197	$	30,585
Deferred tax liabilities:
Property, plant and equipment	(17,642)		(20,267)

Unremitted earnings of foreign subsidiaries	(3,581)		(3,944)
Convertible debt	—		(7,359)
Other	(3,260)		(2,408)
Deferred tax liabilities	(24,483)		(33,978)
Net deferred tax asset (liability) 1	$	(3,286)	$	(3,393)

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1 As of December 31, 2021, certain deferred tax balances associated with discontinued operations remain on the balance sheet and in the inventory of deferred taxes but are presented within current assets and current liabilities associated with discontinued operations.

Reconciliation of Changes in Unrecognized Tax Benefits Associated with Uncertain Tax Positions

The following table summarizes the Company’s reconciliation of gross unrecognized tax benefits, excluding penalties and interest, for the year ended December 31, 2022 and 2021 (in thousands):


	Twelve Months Ended December 31,
	2022		2021
Unrecognized tax benefits - January 1	$	1,285	$	1,610

Additions based on current year tax positions	—		—
Additions based on tax positions related to prior years	350		543
Reductions based on tax positions related to prior years	—		—
Disposition of uncertain tax positions of discontinued operations	(426)		—
Settlements	—		—
Reductions resulting from a lapse of the applicable statute of limitations	(112)		(868)
Unrecognized tax benefits - December 31	$	1,097	$	1,285