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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
(In thousands)202220212020
Components of income before income taxes
U.S. income (loss)$170,426 $(59,746)$109,726 
Non-U.S. income68,107 83,350 58,421 
Income before income taxes$238,533 $23,604 $168,147 
Provision for income taxes
Current
Federal$26,022 $13,179 $23,587 
State7,708 5,000 4,896 
Non-U.S.20,002 22,487 16,780 
Total current provision$53,732 $40,666 $45,263 
Deferred
Federal$7,350 $(29,631)$(573)
State862 (7,204)(579)
Non-U.S.(3,041)(2,015)(1,102)
Total deferred provision (benefit) 5,171 (38,850)(2,254)
Provision for income taxes$58,903 $1,816 $43,009 
On June 10, 2021 the United Kingdom ("U.K.") Parliament announced royal assent for Bill No. 12, on the Finance Act of 2021. This bill will increase the statutory rate from 19% to 25% in April 2023. The Company recorded this impact on its deferred tax balances in the second quarter of 2021.
Reconciliation of the U.S. federal income tax rates to our effective tax rate:
202220212020
U.S. federal income tax rate21.0 %21.0 %21.0 %
State income taxes-U.S.2.9 %(7.0)%2.0 %
Nondeductible compensation1.2 %15.3 %3.4 %
Valuation allowances0.8 %7.0 %0.8 %
Foreign exchange on entity closures0.3 %(0.4)%— %
Taxes on non-U.S. income0.1 %(10.9)%2.6 %
Employee share-based payments(0.8)%(18.3)%(3.9)%
Research and development credit(0.4)%(5.3)%(1.2)%
Taxes on non-U.S. income - U.S., Canadian & European reorganization— %— %0.7 %
Other(0.4)%6.3 %0.2 %
Effective income tax rate24.7 %7.7 %25.6 %
Components of deferred tax assets and liabilities:
December 31,
(In thousands)20222021
Deferred tax assets
 Product liability $72,950 $71,709 
 Capitalized research and development 26,988 25,644 
 Net operating losses and tax credit carryforwards 10,696 9,404 
 Accrued expenses and other reserves 5,738 4,627 
 Share-based compensation 4,562 3,619 
Other5,068 4,785 
Total deferred tax assets126,002 119,788 
Valuation allowances(10,017)(8,812)
Net deferred tax assets115,985 110,976 
Deferred tax liabilities
Goodwill and intangibles(80,383)(79,285)
Property, plant and equipment(18,735)(17,088)
Employee benefits(18,899)(8,985)
Inventory— (1,264)
Other(4,359)(2,434)
Total deferred tax liabilities(122,376)(109,056)
Net deferred taxes$(6,391)$1,920 
At December 31, 2022, we had net operating loss carryforwards of approximately $49.0 million. All net operating loss carryforwards without a valuation allowance may be carried forward for a period of at least six years.
A reconciliation of the change in the tax liability for unrecognized tax benefits for the years ended December 31, 2022 and 2021 is as follows:
(In thousands)20222021
Beginning balance$4,937 $8,092 
Adjustments for tax positions related to the current year100 182 
Adjustments for tax positions related to prior years155 733 
Settlements— (3,211)
Statute expiration— (859)
Ending balance$5,192 $4,937 
The total amount of unrecognized tax benefits, if recognized, would reduce our future effective tax rate. We have recognized tax benefits associated with these liabilities in the amount of $2.7 million and $2.5 million at December 31, 2022 and 2021, respectively.
We recognize interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. Our liability for accrued interest and penalties related to uncertain tax positions was $1.1 million and $0.8 million at December 31, 2022 and 2021, respectively.
We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our consolidated financial statements.
We file a U.S. federal income tax return along with various state and foreign income tax returns. Examinations of our U.S. federal returns have been completed through 2018. Various state and foreign income tax returns may be subject to tax audits for periods after 2015.