XML 54 R43.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023, 2022 and 2021, were as follows:


(In thousands)	2023			2022			2021
Taxes on Income
Federal
Current (1)	$	(22,215	)	$	39,328		$	35,057
Deferred (1)		20,268			(20,636	)		(25,653	)
State
Current (1)		(1,188	)		9,875			9,320
Deferred (1)		444			(6,943	)		(6,556	)
Foreign
Current		13,287			19,799			23,870
Deferred		(2,409	)		127			(1,396	)
Total	$	8,187		$	41,550		$	34,642
Income before Taxes
Domestic	$	11,693		$	103,831		$	77,696
Foreign		36,698			84,872			94,841
Total	$	48,391		$	188,703		$	172,537

(1)

In 2023 for the 2022 U.S. tax returns (federal and state), a U.S. tax accounting method change was made for the 2018-2021 tax years and additional assets that qualified for bonus depreciation under IRC 168(k) were identified. Said items increased the income tax receivable with an offset to current tax expense and created deferred tax liabilities with an offset to deferred tax expense. These amounts were booked in 2023 as a provision-to-return adjustment.

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:


	2023 (1)						2022						2021
(In thousands)	Amount			%			Amount			%			Amount			%
Federal income tax provision at statutory tax rate	$	10,162			21.0		$	39,628			21.0		$	36,233			21.0
State income tax provision, less applicable federal tax benefit		(588	)		(1.2	)		2,316			1.2			2,184			1.3
Foreign income taxed at different rates		1,153			2.4			2,417			1.3			2,356			1.4
U.S. taxation of foreign earnings (2)		1,079			2.2			1,616			0.9			(134	)		(0.1	)
Unrecognized tax benefits (3)		4,090			8.5			3,324			1.8			1,775			1.0
Prior years return to provision true-up (4)		(2,424	)		(5.0	)		(1,915	)		(1.0	)		(3,314	)		(1.9	)
Stock based compensation, excess tax benefits		(1,262	)		(2.6	)		(580	)		(0.3	)		(1,287	)		(0.7	)
U.S. tax credits (5)		(4,582	)		(9.5	)		(4,508	)		(2.4	)		(2,692	)		(1.6	)
Non-deductible expenses and other items, net		559			1.1			(748	)		(0.5	)		(479	)		(0.3	)
Total income tax provision	$	8,187			16.9		$	41,550			22.0		$	34,642			20.1

(1)

In general, all permanent differences, whether positive or negative, have a more pronounced effect on the effective tax rate the lower the pre-tax income even if year-over-year the permanent differences did not change significantly.

(2)

Includes cost of global intangible low-taxed income (GILTI) in 2023, 2022 and 2021 plus other taxes paid or withheld on cash repatriated from foreign countries in 2023 and 2021. For 2023, see footnote below for the impact of repatriation withholding taxes. For 2023 and 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.

(3)

For 2023, includes certain tax credits, transfer pricing, and the potential settlement of a foreign jurisdiction audit discussed below.

(4)

For 2023 and 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.

(5)

For 2023 and 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, 2023 and 2022, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows:


(In thousands)	2023			2022
Deferred Tax Assets:
Pensions	$	446		$	144
Deferred revenue		2,640			3,483
Other accruals and reserves		14,638			13,949
Legal and environmental accruals		7,292			10,283
Deferred compensation		12,199			13,845
Bad debt and rebate reserves		4,916			3,729
Non-U.S. subsidiaries net operating loss carryforwards		6,512			3,634
Amortization of intangibles		37,123			28,311
Inventories		8,959			10,577
Tax credit carryforwards		13,682			8,183
	$	108,407		$	96,138
Deferred Tax Liabilities:
Depreciation	$	(82,907	)	$	(52,130	)
Unrealized foreign exchange loss		(2,784	)		(3,603	)
Other		(2,991	)		(3,064	)
	$	(88,682	)	$	(58,797	)
Valuation Allowance	$	(853	)	$	(836	)
Net Deferred Tax Assets	$	18,872		$	36,505
Reconciliation to Consolidated Balance Sheet:
Non-current deferred tax assets (in other non-current assets)		29,245			46,684
Non-current deferred tax liabilities		(10,373	)		(10,179	)
Net Deferred Tax Assets	$	18,872		$	36,505

Schedule of Reconciliations of Unrecognized Tax Benefits

Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2023, 2022 and 2021:


(In thousands)	2023			2022			2021
Unrecognized tax benefits, opening balance	$	10,682		$	7,292		$	4,735
Gross increases – tax positions in prior period		1,891			2,188			938
Gross increases – current period tax positions		2,139			1,617			1,662
Settlements/State voluntary disclosure		(343	)		(454	)		—
Foreign currency translation		241			74			(14	)
Lapse of statute of limitations		(20	)		(35	)		(29	)
Unrecognized tax benefits, ending balance	$	14,590		$	10,682		$	7,292