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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax provision from continuing operations consists of the following:
Year Ended December 31,
(in thousands)202420232022
Current:
  Federal$21,081 $30,274 $38,801 
  State and local7,568 5,852 13,541 
  Foreign4,780 2,869 4,741 
33,429 38,995 57,083 
Deferred:
  Federal(4,028)(1,012)(13,425)
  State and local(202)1,252 (6,775)
  Foreign858 (2,201)2,745 
(3,372)(1,961)(17,455)
Total:
  Federal17,053 29,262 25,376 
  State and local7,366 7,104 6,766 
  Foreign5,638 668 7,486 
$30,057 $37,034 $39,628 


Income before income taxes from continuing operations consists of the following:
Year Ended December 31,
(in thousands)202420232022
  U.S.$199,950 $161,377 $173,810 
  Foreign807 8,186 20,772 
$200,757 $169,563 $194,582 
A reconciliation from the statutory U.S. federal tax rate to the effective tax rate follows:
Year Ended December 31,
202420232022
Statutory U.S. federal tax rate21.0 %21.0 %21.0 %
Increase (decrease) in rate resulting from:
State and local income taxes, net of related federal taxes3.0 2.9 2.4 
Effect of noncontrolling interest(5.9)(3.9)(3.9)
Derivative instruments and hedging activities(0.1)— (1.3)
U.S. income taxes on foreign earnings0.4 1.3 (0.1)
Nondeductible compensation0.6 0.9 1.2 
Unrecognized tax benefits(0.1)4.7 8.0 
Valuation allowance1.1 0.4 0.7 
Foreign tax credits(1.0)(2.9)(2.1)
Research and development and other tax credits(6.0)(2.7)(7.0)
Other, net2.0 0.1 1.5 
Effective tax rate15.0 %21.8 %20.4 %

Net income taxes of $31.5 million, $45.7 million, and $88.7 million were paid in the years ended December 31, 2024, 2023, and 2022, respectively.

TAMH, Skyland, and ELEMENT for the periods in which the entity was consolidated are treated as partnerships for U.S. tax purposes. Partnerships are not taxable entities so the tax consequences of the partnership’s transactions flow through to the partners at their proportionate share. As a result, the Consolidated Statements of Operations do not reflect such income taxes within Net income attributable to the noncontrolling interest.

The Company has elected to treat Global Intangible Low Tax Income (“GILTI”) as a period cost and, therefore, has not recognized deferred taxes for basis differences that may reverse as GILTI tax in future years.

For the years ended December 31, 2024, and 2023, the Company has not recognized deferred tax liabilities for temporary differences related to investments in foreign subsidiaries that were deemed permanently reinvested. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because such liability, if any, depends on certain circumstances existing and if/when remittance occurs. A deferred tax liability will be recognized if and when the Company no longer plans to permanently reinvest these undistributed earnings.
Significant components of the Company's deferred tax liabilities and assets are as follows:
December 31,
(in thousands)20242023
Deferred tax liabilities:
 Property, plant and equipment$(64,934)$(66,497)
 Operating lease right-of-use assets(18,029)(8,716)
 Identifiable intangibles— (3,565)
 Investments(21,968)(29,962)
 Derivative Instruments(7,202)(6,972)
 Other(5,607)(5,826)
(117,740)(121,538)
Deferred tax assets:
 Employee benefits24,346 28,989 
 Accounts and notes receivable12,289 10,406 
 Inventory3,166 3,718 
Identifiable intangibles655 — 
 Federal income tax credits4,203 3,439 
 Net operating loss carryforwards1,212 1,015 
 Operating lease liability17,685 8,653 
 Other7,402 12,324 
Total deferred tax assets70,958 68,544 
less: Valuation allowance6,591 4,416 
64,367 64,128 
Net deferred tax liabilities(a)
$(53,373)$(57,410)
(a) The Company had deferred tax assets of $1.7 million and $1.2 million included in Other assets in the Consolidated Balance Sheets as of December 31, 2024, and 2023, respectively.

At December 31, 2024, the Company had $31.8 million and $7.0 million of state and non-U.S. net operating loss carryforwards that begin to expire in 2028 and 2027, respectively. The Company also has $4.2 million of U.S. foreign tax credits ("FTCs") carryforwards that begin to expire in 2026. The valuation allowance of $6.6 million is related to $4.2 million, $1.1 million, and $1.3 million of U.S. federal FTCs, foreign net operating losses, and other U.S. deferred tax assets, respectively.

Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance will be recorded to reduce deferred tax assets if, based on all available evidence, it is considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. In assessing the realizability of our deferred tax assets, we consider positive and negative evidence, including historical operating results, future reversals of existing taxable temporary differences, projected future earnings, and tax planning strategies.

The Company and its subsidiaries file income tax returns in the U.S., foreign, state and local jurisdictions. The Company and its subsidiary partnership returns are under federal tax examination by the IRS for tax years ranging from 2018 through 2021. The Company’s subsidiary is under federal tax examination by the Mexican tax authorities for tax year 2015. Due to the potential for resolution of U.S. federal, foreign, state and local examinations, it is reasonably possible that the gross unrecognized tax benefits may change within the next twelve months by a range of $3.3 million to $14.2 million.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
(in thousands)202420232022
Balance at beginning of period$84,719 $79,262 $51,754 
Tax positions related to the current year
Gross additions— — 8,074 
Tax positions related to prior years
Gross additions— 6,134 19,434 
Gross reductions(4,275)(58)— 
Settlements(9,993)— — 
Lapse in statute of limitations— (619)— 
Balance at end of period$70,451 $84,719 $79,262 
As of December 31, 2024, 2023 and 2022, if our unrecognized tax benefits were recognized in future periods, they would favorably impact our effective tax rate. As of December 31, 2024, unrecognized tax benefits of $70.5 million include $54.1 million associated with the federal and state research & development credits.

The Company’s practice is to recognize interest and penalties on uncertain tax positions in the Income tax provision from continuing operations within the Consolidated Statements of Operations. At December 31, 2024, 2023, and 2022, the Company recorded reserves of $15.7 million, $13.0 million, and $8.6 million, respectively, of interest and penalties on uncertain tax positions in Other long-term liabilities within the Consolidated Balance Sheets.