Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Provision for income taxes consisted of the following:

For the year ended December 31
(in thousands)	2022		2021		2020
Income before income taxes:
U.S.	$	20,422	$	63,708	$	63,375
Non-U.S.	111,558		102,223		75,699
	$	131,980	$	165,931	$	139,074
Income tax expense/(benefit)
Current:
Federal	$	9,781	$	3,348	$	1,415
State	5,126		2,663		2,028
Non-U.S.	28,605		29,319		26,916
	$	43,512	$	35,330	$	30,359
Deferred:
Federal	$	(9,592)	$	9,911	$	11,211
State	(1,866)		(24)		192
Non-U.S.	3,418		1,946		69
	$	(8,040)	$	11,833	$	11,472
Total income tax expense	$	35,472	$	47,163	$	41,831

Reconciliation of the U.S. Federal Statutory Tax Rate to the Company's Effective Income Tax Rate

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:

For the year ended December 31	2022		2021		2020
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.5		1.8		1.8
Non-U.S. local income taxes	3.8		2.5		3.2
U.S. permanent adjustments	1.4		1.1		0.1
Foreign permanent adjustments	(2.1)		0.3		—
Foreign rate differential	3.1		1.2		0.6
Net U.S. tax on non-U.S. earnings and foreign withholdings	3.5		2.1		1.2
Provision for/(resolution) of tax audits and contingencies, net	0.3		0.1		0.5
U.S. Pension Settlement - Release of Residual Tax Effect	(4.0)		—		—
Tax effect of non-deductible foreign exchange loss on intercompany loan	—		—		2.7
Impact of amended tax returns	(0.1)		(1.3)		—
Return to provision	(1.1)		(1.4)		(1.6)
Other adjustments	(1.4)		1.0		0.6
Effective income tax rate	26.9	%	28.4	%	30.1	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

For the year ended December 31	U.S.				Non-U.S.
(in thousands)	2022		2021		2022		2021
Deferred tax assets:
Accounts receivable, net	$	436	$	428	$	1,300	$	1,378
Inventories	1,807		1,450		1,111		1,752
Incentive compensation	4,619		4,580		1,333		1,084
Property, plant, equipment and intangibles, net	—		—		1,892		4,339
Pension, post retirement benefits - non-current	9,141		12,912		—		—
Tax loss carryforwards	239		217		14,201		19,821
Tax credit carryforwards	2,635		4,643		—		—
Derivatives	—		468		—		—
Leases	7,597		1,658		—		—
Reserves	721		991		—		—
Deferred revenue	761		239		—		—
Other	47		329		1,707		1,791
Deferred tax assets before valuation allowance	28,003		27,915		21,544		30,165
Less: valuation allowance	(8)		(9)		(9,778)		(10,650)
Total deferred tax assets	$	27,995	$	27,906	$	11,766	$	19,515
Deferred tax liabilities:
Unrepatriated foreign earnings	$	5,827	$	6,308	$	—	$	—
Property, plant, equipment and intangibles, net	3,084		5,356		—		—
Basis difference in partner capital	2,161		2,466		—		—
Basis difference in investment	4,173		3,985		—		—
Derivatives	5,941		—		—		—
Leases	11,609		2,950		—		—
Deferred revenue	—		—		6,440		10,829
Other	—		—		419		602
Total deferred tax liabilities	32,795		21,065		6,859		11,431
Net deferred tax (liability)/asset	$	(4,800)	$	6,841	$	4,907	$	8,084

Summary Of Operating And Capital Loss And Tax Credit Carryforwards

As of December 31, 2022, the Company's net operating loss, capital loss and tax credit carryforwards were as follows:

(in thousands)	Expiration Period	Net Operating and Capital Loss Carryforwards		Tax Credit Carryforwards
Jurisdiction
U.S. Federal	2025 - 2040	$	—	$	2,792
U.S. State	2027 - 2041	3,973		402
U.S. State	Indefinite	—		—
Non-U.S.	2025 - 2030	9,094		—
Non-U.S.	Indefinite	37,008		—
Balance at end of year		$	50,075	$	3,194

Schedule of Unrecognized Tax Benefits

The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits. If recognized, $0.8 million would impact the effective tax rate at December 31, 2022:

(in thousands)	2022		2021		2020
Unrecognized tax benefits balance at January 1,	$	1,459	$	5,491	$	5,834
Increase in gross amounts of tax positions related to prior years	399		278		540
Decrease in gross amounts of tax positions related to prior years	(929)		(4,236)		(637)
Increase in gross amounts of tax positions related to current years	37		—		—
Decrease due to settlements with tax authorities	—		—		—
Decrease due to lapse in statute of limitations	—		(39)		(300)
Currency translation	(174)		(35)		54
Unrecognized tax benefits balance at December 31,	$	792	$	1,459	$	5,491