Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income From Continuing Operation Before Income Taxes

The components of income before income taxes are as follows:


	Years ended December 31,
	2023		2022
	(in thousands)
United States	$	73,853	$	11,864
Foreign	(6,723)		(2,071)
Income before income taxes	$	67,130	$	9,793

Schedule of Components of Income Tax Expense

The components of income tax expense for the years ended December 31, 2023 and 2022 were as follows:


	Federal		State		Foreign		Total
	(in thousands)
2023
Current	$	2,449	$	1,387	$	(139)	$	3,697
Deferred	16,338		3,314		—		19,652
Total	$	18,787	$	4,701	$	(139)	$	23,349

2022
Current	$	—	$	128	$	2,161	$	2,289
Deferred	3,758		(1,693)		—		2,065
Total	$	3,758	$	(1,565)	$	2,161	$	4,354

Schedule of Reconciliation of the Federal Income Tax Expense at the Statutory Rate to the Effective Income Tax Expense

The following is a reconciliation of the federal income tax expense at the statutory rate of 21% for the years ended December 31, 2023 and 2022 to the effective income tax expense:


	Years Ended December 31,
	2023		2022
	(in thousands)
Statutory federal income tax expense	$	14,097	$	2,057
State taxes, net of federal benefit	4,410		(1,593)
Foreign tax paid	(169)		1,509
Foreign jurisdiction rate differential	545		666
Permanent differences-nondeductible executive compensation	2,929		2,180
Permanent differences and other	1,537		(465)
Effective income tax expense	$	23,349	$	4,354

Schedule of Activity Related to the Company's Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:


	(in thousands)
Balance as of December 31, 2021	$	13
Increases related to current year tax positions	11
Decreases due to tax positions expired	(5)
Balance as of December 31, 2022	19
Increases related to current year tax positions	435
Decreases due to tax positions expired	(5)
Balance as of December 31, 2023	$	449

Schedule of Tax Effects of Temporary Differences of the Deferred Tax Assets and Liabilities

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


	As of December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Unearned lease revenue	$	9,614	$	3,867
State taxes	167		2
Inventory	2,426		2,123
Reserves and allowances	5,471		4,425
Other accruals	29,231		15,973
Lease liability	934		1,366
Net operating loss carry forward	51,240		67,595
California alternative minimum tax credit	—		33
Charitable contributions	2		2
Total deferred tax assets	99,085		95,386
Less: valuation allowance	(978)		(536)
Net deferred tax assets	98,107		94,850

Deferred tax liabilities:
Depreciation and impairment on aircraft engines and equipment	(231,694)		(208,389)
Notes receivable	(5,405)		(5,479)
Lease liability	(930)		(1,360)
Other deferred tax liabilities	(4,622)		(4,590)
Net deferred tax liabilities	(242,651)		(219,818)

Other comprehensive income deferred tax liability	(3,235)		(7,548)

Net deferred tax liabilities	$	(147,779)	$	(132,516)