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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Provision

Income tax provision (benefit) from continuing operations consists of the following:


	Year ended December 31,
(in thousands)	2022		2021		2020
Current:
Federal	$	38,801	$	23,333	$	(42,718)
State and local	13,541		4,934		(748)
Foreign	4,741		760		6,731
	57,083		29,027		(36,735)

Deferred:
Federal	(13,425)		(3,687)		28,665
State and local	(6,775)		819		1,180
Foreign	2,745		3,069		(4,020)
	(17,455)		201		25,825

Total:
Federal	25,376		19,646		(14,053)
State and local	6,766		5,753		432
Foreign	7,486		3,829		2,711
	$	39,628	$	29,228	$	(10,910)

Components of Income Before Income Taxes

Income (loss) before income taxes from continuing operations consists of the following:


	Year ended December 31,
(in thousands)	2022		2021		2020
U.S.	$	173,810	$	143,712	$	(38,319)
Foreign	20,772		17,058		11,238
	$	194,582	$	160,770	$	(27,081)

Schedule of Effective Tax Rate Reconciliation

A reconciliation from the statutory U.S. federal tax rate to the effective tax rate follows:


	Year ended December 31,
	2022		2021		2020
Statutory U.S. federal tax rate	21.0	%	21.0	%	21.0	%
Increase (decrease) in rate resulting from:
State and local income taxes, net of related federal taxes	2.4		2.5		0.5
Federal tax rate differential	(0.3)		0.4		(2.1)
U.S. tax rate change and other tax law impacts (a)	0.4		0.5		56.2
Effect of noncontrolling interest	(3.9)		(4.2)		(17.0)
Derivative instruments and hedging activities	(1.3)		0.4		(11.8)
U.S. income taxes on foreign earnings	(0.1)		0.7		(1.8)
Nondeductible compensation	1.2		1.9		(5.5)
Unrecognized tax benefits	8.0		2.1		(72.2)
Valuation allowance	0.7		0.1		(1.9)
Foreign tax credits	(2.1)		(1.3)		(0.5)
Research and development and other tax credits	(7.0)		(5.0)		75.6
Equity method investments	0.8		(0.6)		(0.1)
Other, net	0.6		(0.3)		(0.1)
Effective tax rate	20.4	%	18.2	%	40.3	%

(a) Reflects the impact of the CARES Act which provided a financial statement benefit of $14.8 million in 2020.

Schedule of Deferred Tax Liabilities and Assets

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


	December 31,
(in thousands)	2022		2021
Deferred tax liabilities:
Property, plant and equipment	$	(58,273)	$	(66,913)
Operating lease right-of-use assets	(9,370)		—
Identifiable intangibles	(6,802)		(7,022)
Investments	(34,604)		(35,842)
Derivative Instruments	(7,911)		—
Other	(5,160)		(3,859)
	(122,120)		(113,636)
Deferred tax assets:
Employee benefits	28,859		27,695
Accounts and notes receivable	6,726		2,189
Inventory	10,272		4,533
Federal income tax credits	1,914		2,292
Net operating loss carryforwards	1,740		2,906
Derivative instruments	—		1,774
Operating lease liability	9,526		—
Other	7,118		5,490
Total deferred tax assets	66,155		46,879
less: Valuation allowance	3,834		2,834
	62,321		44,045
Net deferred tax liabilities(a)	$	(59,799)	$	(69,591)

(a) The Company had deferred tax assets of $4.3 million and $1.5 million included in Other assets in the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively.

Schedule of Unrecognized Tax Benefits Excluding Interest and Penalties

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


(in thousands)	2022		2021		2020
Balance at beginning of period	$	51,754	$	44,401	$	22,415
Tax positions related to the current year
Gross additions	8,074		13,179		11,598
Tax positions related to prior years
Gross additions	19,434		1,364		12,013
Gross reductions	—		(7,190)		(1,566)
Lapse in statute of limitations	—		—		(59)
Balance at end of period	$	79,262	$	51,754	$	44,401