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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income (loss) before income taxes are as follows (in thousands):
 Years Ended December 31,
 202220212020
Domestic$59,736 $9,897 $(33,239)
Foreign6,165 9,285 (15,074)
Total income before taxes$65,901 $19,182 $(48,313)
The provision for income taxes consisted of the following (in thousands):
 Years Ended December 31,
 202220212020
Current -   
Federal$18,591 $(5,243)$(6,348)
State4,501 (522)(240)
Foreign2,248 3,056 2,624 
Total current$25,340 $(2,709)$(3,964)
Deferred -   
Federal(5,875)5,016 (10,567)
State(1,083)1,810 (3,126)
Foreign(583)(686)(1,039)
Total deferred$(7,541)$6,140 $(14,732)
Total current and deferred taxes$17,799 $3,431 $(18,696)

The difference between income taxes computed at the statutory income tax rate and the provision for income taxes is as follows (in thousands):
 Years Ended December 31,
 202220212020
Income taxes computed at federal statutory rate$13,839 $4,028 $(10,146)
State income taxes, net of federal benefit2,701 1,017 (2,625)
Foreign taxes122 186 (493)
Nondeductible expenses1,158 353 5,617 
Enacted rate changes240 318 670 
Research and development tax credit(250)(1,036)(16,879)
Foreign tax credit— — — 
Valuation allowance(1)1 16 
Tax reform deferred tax remeasurement— (2,587)— 
Deferred tax liability true up— (62)(551)
Uncertain tax positions271 871 5,057 
Other(281)342 638 
Total income tax expense (benefit)$17,799 $3,431 $(18,696)
Deferred tax liabilities and assets were comprised of the following (in thousands):
December 31,
 20222021
Deferred tax assets: 
Allowance for doubtful accounts$1,570 $1,554 
Inventory4,585 4,747 
Federal general business credit carryforward— 4,237 
Texas research and development tax credit carryforward2,329 2,679 
   Louisiana research and development tax credit carryforward10 239 
Foreign tax credit carryforward64 64 
Charitable Contribution Carryforward— 531 
Net operating loss carryforward1,201 786 
Capital loss carryforward4 4 
Deferred compensation— 152 
Accruals6,190 7,005 
Business interest expense carryforward— 389 
ROU asset219 226 
Research expenses16,945 — 
Other— — 
Total deferred tax assets33,117 22,613 
Less valuation allowance(4)(4)
Total deferred tax asset, net of valuation allowance33,113 22,609 
Deferred tax liabilities:
Goodwill(18,439)(13,474)
Intangibles(9,553)(6,813)
Property and equipment(8,542)(8,117)
Unremitted foreign earnings(421)(421)
Method changes(225)(465)
Other(825)(835)
Net deferred tax liability$(4,892)$(7,516)

The Company records a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions. If the Company was to determine that it would be able to realize the deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. As of December 31, 2022, the valuation allowance primarily relates to federal and foreign capital loss carryforwards.

The following summarizes changes in the balance of valuation allowances on deferred tax assets (in thousands):

  Years Ended December 31,
  202220212020
Balance at January 1$(4)$(12,813)$(12,363)
Changes due to federal and foreign capital loss carryforwards— 12,809 (450)
Balance at December 31$(4)$(4)$(12,813)
Tax carryforwards available for use on future income tax returns, prior to valuation allowance, at December 31, 2022, are as follows (in thousands):

  Domestic  ForeignExpiration
Net operating loss - foreign$— $460 2034 - 2041
Net operating loss - federal742 — 2036 - 2040
Capital loss carryforward - foreign— 4 
Indefinite
Capital loss carryforward - federal— — 2021
Foreign tax credits64 — 2023 - 2025
Federal general business tax credits— — 2026 - 2030
Texas research and development tax credits2,330 — 2037 - 2040
Louisiana research and development tax credits$10 $— 2024 - 2025

Changes in the balance of unrecognized tax benefits excluding interest and penalties on uncertain tax positions are as follows (in thousands):

  Assets (Liabilities)
  202220212020
Balance at January 1,$(6,316)$(5,057)$— 
   Increases related to prior year tax positions— (687)(5,057)
   Decreases related to prior year tax positions614 — — 
   Increases related to current year tax positions(216)(572)— 
Balance at December 31,$(5,918)$(6,316)$(5,057)

As of December 31, 2022, the Company had recorded a total tax benefit of $23.3 million related to federal and state research and development tax credits. This benefit is partially offset by $5.9 million uncertain tax position due to the uncertainty related to the realizability of the federal research and development tax credits.

To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts are classified as a component of income tax provision (benefit) in the consolidated financial statements consistent with Company's policy. For the year ended December 31, 2022, the Company recorded $0.1 million tax expense for interest and penalties related to uncertain tax positions.

The Company is subject to taxation in the United States, various states, and foreign jurisdictions. The Company has significant operations in the United States and Canada and to a lesser extent in various other international jurisdictions. Tax years that remain subject to examination vary by legal entity but are generally open in the United States for the tax years ended after 2016 and outside the United States for the tax years ended after 2015.