Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Components of income tax expense (benefit) associated with earnings from continuing operations

The components of income tax (benefit) expense from continuing operations are as follows:


	For the twelve months ended December 31,
	2020		2019		2018
In thousands
Current:
Federal	$	1,693	$	(19,432)	$	351
State	(3,143)		1,996		104
Foreign	168		585		1,191
	(1,282)		(16,851)		1,646
Deferred:
Federal	(5,650)		719		7,145
State	899		277		841
Foreign	(1,697)		(4)		(373)
	(6,448)		992		7,613
Total	$	(7,730)	$	(15,859)	$	9,259

Tax effects of temporary differences that give rise to deferred tax assets and liabilities

The tax effects of temporary differences that give rise to deferred tax assets and liabilities of continuing operations are presented below:


	At December 31,
	2020		2019
In thousands
Deferred tax assets:
Deferred employee benefits	$	30,701	$	36,678
Tax loss and credit carryforwards	33,065		19,449
Accrued liabilities and other items	17,420		14,044
Total deferred tax assets	81,186		70,171
Deferred tax liabilities:
Property, plant and equipment	(5,379)		(6,410)
Intangibles	(32,398)		(27,147)
Other items	(765)		(226)
Total deferred tax liabilities	(38,542)		(33,783)
Net deferred tax assets before valuation allowance	42,644		36,388
Valuation allowance	(10,216)		(8,142)
Net deferred tax assets after valuation allowance	$	32,428	$	28,246

Schedule of effective income tax rate reconciliation

The provision for income taxes from continuing operations differs from that computed at the federal statutory corporate tax rate as follows:


	For the twelve months ended December 31,
	2020		2019		2018
In thousands
Federal tax at 21% statutory rate	$	(16,415)	$	8,523	$	5,279
State income taxes, net of federal benefit(1)	(2,208)		1,839		773
Tax effect:
Goodwill impairment charge	8,297		—		—
Impairment on business	7,620		—		—
Research and development credits	(821)		(3,480)		(100)
Impact of entity classification election	—		(24,813)		—
Foreign derived intangible income benefit	—		—		(2,186)
Provision to return adjustments	610		(1,466)		(1,612)
Foreign losses for which no tax benefit has been recorded	41		1,282		2,685
Change in valuation allowance	1,449		976		3,161
Equity compensation benefit	(209)		(482)		(910)
Nondeductible compensation	215		891		347
Nondeductible acquisition costs	—		546		—
Federal benefit of NOL Carryback	(3,885)		—		—
Other, net	(2,424)		325		1,822
Income tax (benefit) expense	$	(7,730)	$	(15,859)	$	9,259

(1) Included in state income taxes, net of federal benefit was the state impact of the entity classification election of $0.9 million for the year ended December 31, 2019.

Change in the liability for uncertain tax positions

The change in the liability for 2020, 2019 and 2018 is explained as follows:


	2020		2019		2018
In thousands
Balance at January 1	$	3,214	$	3,457	$	3,423
Additions (reductions) based on current year tax positions	481		(378)		162
Changes for tax positions of prior years	3		135		(128)
Settlements	(86)		—		—
Balance at December 31	$	3,612	$	3,214	$	3,457