Income taxes are recognized for the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. The effects of income taxes are measured based on enacted tax laws and rates.

The provision for (benefit from) income taxes from continuing operations consisted of the following:

	Year ended December 31
In thousands	2020			2019			2018
Current taxes
Federal	$	(4,989	)	$	(419	)	$	—
State		166			134			442
Foreign		18,470			14,014			14,985
		13,647			13,729			15,427
Deferred taxes and other
Federal		540			(20,448	)		(9,242	)
State		(1,183	)		(4,105	)		251
Foreign		(1,428	)		1,582			1,287
		(2,071	)		(22,971	)		(7,704	)
Income tax provision (benefit)	$	11,576		$	(9,242	)	$	7,723

The following are the domestic and foreign components of pretax income (loss) from continuing operations:

	Year ended December 31
In thousands	2020			2019			2018
United States	$	(35,696	)	$	(107,455	)	$	(59,264	)
Foreign		68,055			73,002			66,539
Total pretax income (loss)	$	32,359		$	(34,453	)	$	7,275

The following table sets forth a reconciliation of the statutory federal income tax rate to our actual effective tax rate for continuing operations.

	Year ended December 31
	2020			2019			2018

Federal income tax provision at statutory rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal income tax benefit		0.6			3.7			(15.9	)
Foreign income tax rate differential		3.4			2.0			(18.9	)
Tax effect of tax credits		(10.2	)		8.2			1.3
Provision for (resolution of) tax matters		12.4			(8.0	)		46.5
Rate changes due to enacted legislation		0.7			0.1			7.2
Effect of U.S. tax law change		(21.5	)		—			(7.5	)
Global Intangible Low-taxed Income		7.1			(9.4	)		33.8
Stock-based compensation		1.4			(1.0	)		10.0
Nondeductible officer's compensation		1.0			(0.7	)		5.2
Valuation allowance		11.7			4.3			15.7
Pension termination, settlement and related		5.4			5.0			—
Other		2.8			1.6			7.8
Actual tax rate		35.8	%		26.8	%		106.2	%

The effective income tax rate for the year ended December 31, 2020 was unfavorably impacted by operating losses in the US which generated no tax benefit, and $10.5 million of pension, restructuring, and other non-recurring costs for which no tax benefit was recorded, offset in part by $6.1 million recorded in connection with passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES”). This Act, which was signed into law on March 27, 2020, modified the “net operating loss” provisions of previous law to allow losses arising in a taxable year beginning after December 31, 2017 and before January 1, 2021, to be carried back five years.


In thousands	2020			2019

Reserves	$	685		$	991
Environmental		4,481			5,696
Compensation		2,415			3,287
Pension		4,279			—
Post-retirement benefits		1,388			1,619
Research & development expenses		3,092			6,439
Inventories		—			(91	)
Tax carryforwards		16,703			25,227
Other		5,714			1,117
Deferred tax assets		38,757			44,285
Valuation allowance		(23,305	)		(28,485	)
Net deferred tax assets		15,452			15,800
Property		(70,492	)		(65,027	)
Intangible assets		(18,808	)		(19,355	)
Pension		—			(6,198	)
Other		(3,282	)		(1,577	)
Deferred tax liabilities		(92,582	)		(92,157	)
Net deferred tax liabilities	$	(77,130	)	$	(76,357	)

Non-current deferred tax assets and liabilities are included in the following balance sheet captions:

At December 31, 2020 we had federal, state and foreign tax net operating loss (“NOL”) carryforwards of $10.0 million, $199.3 million and $3.6 million, respectively. These NOL carryforwards are available to offset future taxable income, if any. The federal NOL carryforward expires in 2037. The state NOL carryforwards expire at various times and in various amounts beginning in 2021. Certain foreign NOL carryforwards begin to expire after 2024.

The federal, state and foreign NOL carryforwards on the income tax returns filed included unrecognized tax benefits taken in prior years. The NOLs for which a deferred tax asset is recognized for financial statement purposes in accordance with ASC 740 are presented net of these unrecognized tax benefits.

In addition, we had various federal tax credit carryforwards totaling $14.2 million which begin to expire after 2034 and state tax credit carryforwards totaling $3.4 million, which begin to expire in 2021.

As of December 31, 2020 and 2019, we had a valuation allowance of $23.3 million and $28.5 million, respectively, against net deferred tax assets, primarily due to uncertainty regarding the ability to utilize federal, state and foreign tax NOL carryforwards and certain state tax credits. In assessing the need for a valuation allowance, management considers all available positive and negative evidence in its analysis. Based on this analysis, we recorded a valuation allowance for the portion of deferred tax assets where the weight of available evidence indicated it is more likely than not that the deferred tax assets will not be realized.

Tax credits and other incentives reduce tax expense in the year the credits are claimed. We recorded tax credits of $3.3 million, $2.8 million and $(0.1) million in 2020, 2019 and 2018, respectively, related to research and development credits.

At December 31, 2020 and 2019, unremitted earnings of subsidiaries outside the United States deemed to be indefinitely reinvested totaled $109 million and $62.0 million, respectively. Because the unremitted earnings of subsidiaries are deemed to be indefinitely reinvested as of December 31, 2020 and because we have no need for or plans to repatriate such earnings, no deferred tax liability has been recognized in our consolidated financial statements.

As of December 31, 2020, 2019 and 2018, we had $46.3 million, $30.5 million and $29.6 million of gross unrecognized tax benefits, respectively. As of December 31, 2020, if such benefits were to be recognized, approximately $35.8 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

In millions	2020			2019			2018
Balance at January 1	$	30.5		$	29.6		$	26.9
Increases in tax positions for prior years		13.9			2.8			0.3
Decreases in tax positions for prior years		(0.1	)		(2.9	)		(1.0	)
Acquisition related:
Purchase Accounting		—			—			0.3
Increases in tax positions for current year		4.4			4.6			4.0
Settlements		(1.1	)		(0.3	)		(0.2	)
Lapse in statutes of limitation		(1.3	)		(3.3	)		(0.7	)
Balance at December 31	$	46.3		$	30.5		$	29.6

We, or one of our subsidiaries, file income tax returns with the United States Internal Revenue Service, as well as various state and foreign authorities. The following table summarizes tax years that remain subject to examination by major jurisdiction:

	Open Tax Years
Jurisdiction	Examinations not yet initiated	Examination in progress

United States
Federal	2014 - 2015; 2017 - 2020	N/A
State	2016 - 2020	2015 - 2018
Canada⁽¹⁾	2013 - 2018; 2020	2019
Germany⁽¹⁾	2016 - 2020	N/A
France	2018 - 2020	N/A
United Kingdom	2019 - 2020	N/A
Philippines	2019 - 2020	2018

The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Management performs a comprehensive review of its global tax positions on a quarterly basis and accrues amounts for uncertain tax positions. Based on these reviews and the result of discussions and resolutions of matters with certain tax authorities and the closure of tax years subject to tax audit, reserves are adjusted as necessary. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are determined or resolved or as such statutes are closed. Due to potential for resolution of federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible our gross unrecognized tax benefits balance may decrease within the next twelve months by a range of zero to $6.1 million. The majority of this range relates to tax positions taken in Canada and the U.S.

We recognize interest and penalties related to uncertain tax positions as income tax expense. The following table summarizes information related to interest and penalties on uncertain tax positions:

	As of or for the year ended December 31,
In millions	2020		2019			2018
Accrued interest payable	$	1.8	$	0.4		$	1.1
Interest expense (income)		1.0		(0.7	)		0.3
Penalties		—		—			—