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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Provision for Taxes on Income and Other Related Income Before Taxes

The provisions for taxes on income and the related income before taxes for the years ended December 31, 2022, 2021 and 2020, were as follows:


(In thousands)	2022			2021			2020
Taxes on Income
Federal
Current	$	39,328		$	35,057		$	21,889
Deferred		(20,636	)		(25,653	)		(3,453	)
State
Current		9,875			9,320			4,305
Deferred		(6,943	)		(6,556	)		(562	)
Foreign
Current		19,799			23,870			21,723
Deferred		127			(1,396	)		(491	)
Total	$	41,550		$	34,642		$	43,411
Income before Taxes
Domestic	$	103,831		$	77,696		$	81,906
Foreign		84,872			94,841			89,161
Total	$	188,703		$	172,537		$	171,067

Summary of Variations Between the Effective and Statutory U.S. Federal Income Tax Rates

The variations between the effective and statutory U.S. federal income tax rates are summarized as follows:


	2022						2021						2020
(In thousands)	Amount			%			Amount			%			Amount			%
Federal income tax provision at statutory tax rate	$	39,628			21.0		$	36,233			21.0		$	35,924			21.0
State income tax provision, less applicable federal tax benefit		2,316			1.2			2,184			1.3			2,956			1.7
Foreign income taxed at different rates		2,417			1.3			2,356			1.4			1,964			1.1
U.S. taxation of foreign earnings (1)		1,616			0.9			(134	)		(0.1	)		4,134			2.4
Unrecognized tax benefits		3,324			1.8			1,775			1.0			1,454			0.8
Prior years return to provision true-up (2)		(1,915	)		(1.0	)		(3,314	)		(1.9	)		(588	)		(0.3	)
Stock based compensation, excess tax benefits		(580	)		(0.3	)		(1,287	)		(0.7	)		(1,816	)		(1.1	)
U.S. tax credits (3)		(4,508	)		(2.4	)		(2,692	)		(1.6	)		(1,831	)		(1.1	)
Non-deductible expenses and other items, net		(748	)		(0.5	)		(479	)		(0.3	)		1,214			0.9
Total income tax provision	$	41,550			22.0		$	34,642			20.1		$	43,411			25.4

(1)

Includes cost of global intangible low-taxed income (GILTI) in 2022, 2021 and 2020 plus other taxes paid or withheld on cash repatriated from foreign countries in 2021 and 2020. For 2022, includes Subpart F activity. For 2021, includes the benefit of separate limitation loss foreign tax credit attributes, related to prior years, that were utilized in 2021.

(2)

For 2022, amount resulted from a higher federal research credit and lower GILTI. For 2021, amount resulted from a higher federal research credit, higher foreign-derived intangible income (FDII), and lower GILTI.

(3)

For 2022, the increase was partially due to certain pilot model design and engineering costs.

Schedule Showing Tax Effects of Significant Temporary Differences Representing Deferred Tax Assets and Liabilities

At December 31, 2022 and 2021, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows:


(In thousands)	2022			2021
Deferred Tax Assets:
Pensions	$	144		$	537
Deferred revenue		3,483			3,444
Other accruals and reserves		13,949			13,331
Legal and environmental accruals		10,283			7,385
Deferred compensation		13,845			16,210
Bad debt and rebate reserves		3,729			2,706
Non-U.S. subsidiaries net operating loss carryforwards		3,634			1,494
Amortization of intangibles		28,311			5,092
Inventories		10,577			3,108
Tax credit carryforwards		8,183			2,829
	$	96,138		$	56,136
Deferred Tax Liabilities:
Depreciation	$	(52,130	)	$	(42,299	)
Unrealized foreign exchange loss		(3,603	)		(2,908	)
Other		(3,064	)		(1,614	)
	$	(58,797	)	$	(46,821	)
Valuation Allowance	$	(836	)	$	(862	)
Net Deferred Tax Assets	$	36,505		$	8,453
Reconciliation to Consolidated Balance Sheet:
Non-current deferred tax assets (in other non-current assets)		46,684			20,944
Non-current deferred tax liabilities		(10,179	)		(12,491	)
Net Deferred Tax Assets	$	36,505		$	8,453

Schedule of Reconciliations of Unrecognized Tax Benefits

Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2022, 2021 and 2020:


(In thousands)	2022			2021			2020
Unrecognized tax benefits, opening balance	$	7,292		$	4,735		$	3,273
Gross increases – tax positions in prior period		2,188			938			190
Gross increases – current period tax positions		1,617			1,662			1,288
Settlements		(454	)		—			—
Foreign currency translation		74			(14	)		15
Lapse of statute of limitations		(35	)		(29	)		(31	)
Unrecognized tax benefits, ending balance	$	10,682		$	7,292		$	4,735