Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

ncome from continuing operations before income taxes, as shown in the accompanying Consolidated Statements of Operations, includes the following components for the years ended December 31, 2022 and 2021:


	Year Ended December 31,
	2022		2021
Domestic	$	(5,074)	$	2,772
Foreign	(3,922)		1,818
(Loss) income from continuing operations, before income taxes	$	(8,996)	$	4,590

Significant Components of Income Tax

Significant components of the provision for income taxes for the years ended December 31, 2022 and 2021 were as follows:


	Year Ended December 31,
	2022		2021
Current:
Federal	$	—	$	—
State	127		(237)
Foreign	769		1,217
Total current	896		980
Deferred:
Federal	28,287		(675)
State	9,001		1,450
Foreign	(1,503)		(636)
Total deferred	35,785		139
Total income tax expense	$	36,681	$	1,119

Reconciliation of Statutory Income to Income Tax Expense

The reconciliation of income tax computed at statutory rates to income tax expense for the years ended December 31, 2022 and 2021 is as follows:


	Year Ended December 31,
	2022				2021
	Amount		Percent		Amount		Percent
Statutory rate	$	(1,889)	21.0	%	$	964	21.0	%
Foreign tax rate differential	(306)		3.4		20		0.4
State income taxes, net of federal benefit	327		(3.6)		132		2.9

Non-deductible expenses	200		(2.2)		153		3.3
Tax benefits related to disposition of the Test and Inspection Services business	—		—		(2,130)		(46.4)


Income tax credits	(261)		2.9		(227)		(4.9)
Change in income tax rates	176		(2.0)		379		8.3
Tax on unremitted foreign earnings	439		(4.9)		(68)		(1.5)
Change in valuation allowance	37,895		(421.2)		1,807		39.4
Other	100		(1.1)		89		1.9
Total income tax expense / Effective rate	$	36,681	(407.7)	%	$	1,119	24.4	%

Significant Components of Deferred Tax Asset and Liability

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2022 and 2021 were as follows:


	December 31,
	2022		2021
Deferred tax assets:
Goodwill and other intangibles	$	8,099	$	7,047
Accrued settlement	3,915		6,000
Deferred compensation	2,396		2,165
Contingent liabilities	613		644
Net operating loss / tax credit carryforwards	30,812		28,932
Pension and post-retirement liability	297		1,218
Inventories	1,790		500
Warranty reserve	202		248
Accounts receivable	181		129
Interest deduction carryforward	775		161
Capitalized research expenditures	1,292		—
Other	644		767
Total deferred tax assets	51,016		47,811
Less: valuation allowance	(40,601)		(3,290)
Net deferred tax assets	10,415		44,521
Deferred tax liabilities:
Goodwill and other intangibles	(2,803)		(3,814)
Depreciation	(9,434)		(6,919)
Unrealized income on interest rate swap contracts	(472)		—
Unremitted earnings of foreign subsidiaries	(625)		(220)
Other	(166)		(79)
Total deferred tax liabilities	(13,500)		(11,032)
Net deferred tax (liabilities) assets	$	(3,085)	$	33,489

Reconciliation of Unrealized tax Benefits

The following table provides a reconciliation of unrecognized tax benefits as of December 31, 2022 and 2021:


	December 31,
	2022		2021
Unrecognized tax benefits at beginning of period:	$	365	$	409

Decreases based on tax positions for prior periods	(11)		(44)

Balance at end of period	$	354	$	365