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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 Years Ended December 31,
 202420232022
 (in thousands)
Income from continuing operations before taxes:
United States operations$74,850 $86,805 $97,900 
Foreign operations153,092 198,951 219,493 
Income from continuing operations before taxes$227,942 $285,756 $317,393 
Income tax expense (benefit):
Currently payable
United States federal$29,589 $34,091 $34,310 
United States state and local1,573 3,900 4,801 
Foreign14,320 18,166 6,677 
45,482 56,157 45,788 
Deferred
United States federal(6,342)(7,497)(446)
United States state and local(1,041)(623)(50)
Foreign(8,571)(4,837)4,353 
(15,954)(12,957)3,857 
Income tax expense$29,528 $43,200 $49,645 
In addition to the above income tax expense associated with continuing operations, we also recorded an income tax benefit associated with discontinued operations of $2.5 million in 2022.
 Years Ended December 31,
 202420232022
Effective income tax rate reconciliation from continuing operations:
United States federal statutory rate21.0%21.0%21.0%
State and local income taxes(0.2)%0.8%1.2%
Impact of change in tax contingencies3.8%0.3%0.1%
Foreign income tax rate differences(11.6)%(10.5)%(10.9)%
Impact of change in deferred tax asset valuation allowance(0.5)%0.5%(2.5)%
Domestic permanent differences and tax credits(0.5)%2.9%6.3%
Impact of share-based compensation1.0%0.1%0.4%
13.0%15.1%15.6%

In 2024, the most significant difference between the U.S. federal statutory tax rate and our effective tax rate was the impact of foreign tax rate differences. Foreign tax rate differences resulted in an income tax benefit of $26.4 million, $30.1 million, and $34.4 million in 2024, 2023, and 2022, respectively. Changes in tax contingencies, primarily associated with our foreign tax credit, was another significant difference between the U.S. federal statutory tax rate and our effective tax rate in 2024.

If we were to repatriate foreign cash to the U.S., we may be required to accrue and pay U.S. taxes in accordance with applicable U.S. tax rules and regulations as a result of the repatriation. However, it is our intent to permanently reinvest the earnings of our non-U.S. subsidiaries in those operations and for continued non-U.S. growth opportunities.

The components of deferred income taxes were as follows:

 December 31,
 20242023
 (In thousands)
Components of deferred income tax balances:
Deferred income tax liabilities:
Plant, equipment, and intangibles$(136,386)$(98,112)
Right of use asset(31,603)(21,440)
(167,989)(119,552)
Deferred income tax assets:
Net operating loss, capital loss, and tax credit carryforwards115,591 114,896 
Reserves and accruals54,085 41,474 
Lease liability32,351 22,073 
Postretirement, pensions, and stock compensation13,045 17,052 
Valuation allowances(108,064)(109,676)
107,008 85,819 
Net deferred income tax liability$(60,981)$(33,733)

The net increase in deferred tax liabilities primarily relates to the deferred tax liabilities associated with the intangible assets of the Precision acquisition.

As of December 31, 2024, we had $92.0 million of gross net operating loss carryforwards, $15.1 million of tax credit carryforwards, and $395.7 million of gross capital loss carryforwards. Unless otherwise utilized, net operating loss carryforwards will expire upon the filing of the tax returns for the following respective years: $9.1 million between 2025 and 2027 and $36.5 million between 2028 and 2043. Net operating loss with an indefinite carryforward period total $46.4 million. Of the $92.0 million in net operating loss carryforwards, we have determined, based on the weight of all available evidence, both positive and negative, that we will utilize $34.8 million of these net operating loss carryforwards within their respective expiration periods. A valuation allowance has been recorded on the remaining portion of the net operating loss carryforwards.
Unless otherwise utilized, tax credit carryforwards of $15.1 million will expire as follows: $0.1 million in 2024, $8.5 million between 2025 and 2027 and $4.0 million between 2028 and 2043. Tax credit carryforwards with an indefinite carryforward period total $2.5 million. We have determined, based on the weight of all available evidence, both positive and negative, that we will utilize $11.8 million of these tax credit carryforwards within their respective expiration periods. A valuation allowance has been recorded on the remaining portion of the tax credit carryforwards.

Unless otherwise utilized, of the $395.7 million in gross capital loss carryforwards, $351.5 million will expire between 2025 and 2029 and the remaining $44.2 million have an indefinite carryforward period. A full valuation allowance has been recorded as we do not expect to be able to utilize the capital losses.

The following tables summarize our net operating loss carryforwards and tax credit carryforwards as of December 31, 2024 by jurisdiction:
 Net Operating Loss Carryforwards
 (In thousands)
United States - Federal and various states$39,265 
Germany19,369 
United Kingdom17,771 
Other8,070 
Australia7,501 
Total$91,976 
 Tax Credit Carryforwards
 (In thousands)
United States$13,039 
Belgium2,046 
Total$15,085 
In 2024, we recognized a net $8.5 million increase to reserves for uncertain tax positions. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
20242023
 (In thousands)
Balance at beginning of year$7,143 $6,180 
Additions for tax positions of prior years9,354 605 
Additions based on tax positions related to the current year524 358 
Reduction for tax positions of prior years(1,340)— 
Balance at end of year$15,681 $7,143 
The balance of $15.7 million at December 31, 2024 reflects tax positions that, if recognized, would impact our effective tax rate. Our practice is to recognize interest and penalties related to uncertain tax positions in interest expense and operating expenses, respectively. As of December 31, 2024 and 2023, we accrued $0.1 million and $0.0 million for the payment of interest and penalties.

Our federal tax return for the tax years 2015 and later remain subject to examination by the Internal Revenue Service. Our state and foreign income tax returns for the tax years 2014 and later remain subject to examination by various state and foreign tax authorities.