Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, 2020 and 2019, were as follows:

(In thousands)	2021			2020			2019
Taxes on Income
Federal
Current	$	35,057		$	21,889		$	9,998
Deferred		(25,653	)		(3,453	)		(2,879	)
State
Current		9,320			4,305			2,248
Deferred		(6,556	)		(562	)		(1,783	)
Foreign
Current		23,870			21,723			15,568
Deferred		(1,396	)		(491	)		(354	)
Total	$	34,642		$	43,411		$	22,798
Income before Taxes
Domestic	$	77,696		$	81,906		$	63,399
Foreign		94,841			89,161			62,500
Total	$	172,537		$	171,067		$	125,899

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:

(In thousands)	2021 Amount			%			2020 Amount			%			2019 Amount			%
Federal income tax provision at statutory tax rate	$	36,233			21.0		$	35,924			21.0		$	26,439			21.0
State income tax provision, less applicable federal tax benefit ⁽¹⁾		2,184			1.3			2,956			1.7			367			0.3
Foreign income taxed at different rates		2,356			1.4			1,964			1.1			623			0.5
U.S. taxation of foreign earnings ⁽²⁾		(134	)		(0.1	)		4,134			2.4			2,349			1.9
Unrecognized tax benefits		1,775			1.0			1,454			0.8			2,954			2.3
Prior years return to provision true-up ⁽³⁾		(3,314	)		(1.9	)		(588	)		(0.3	)		(1,740	)		(1.4	)
Stock based compensation, excess tax benefits		(1,287	)		(0.7	)		(1,816	)		(1.1	)		(1,633	)		(1.3	)
U.S. tax credits ⁽⁴⁾		(2,692	)		(1.6	)		(1,831	)		(1.1	)		(6,412	)		(5.1	)
Non-deductible expenses and other items, net		(479	)		(0.3	)		1,214			0.9			(149	)		(0.1	)
Total income tax provision	$	34,642			20.1		$	43,411			25.4		$	22,798			18.1

(1)	For 2019, amount includes incremental state research credits for the tax years 2015 - 2019 that were identified as part of a research and development tax credit study.

(2)

Includes cost of global intangible low-taxed income (GILTI) in 2021, 2020 and 2019 plus other taxes paid or withheld on cash repatriated from foreign countries in 2021, 2020 and 2019. For 2021, includes the benefit of separate limitation loss foreign tax credit attributes, related to prior years, that were utilized in 2021.

(3)	For 2021, amount resulted from a higher federal research credit, higher foreign-derived intangible income (FDII), and lower GILTI related to the 2020 tax year.

(4)

For 2019, amount includes incremental federal research credits for 2015 - 2019 that were identified as part of a research and development tax credit study. Also includes a federal tax rate change due to the classification of certain 2016 and 2017 depreciable fixed assets as deductible research costs.

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

At December 31, 2021 and 2020, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows:

(In thousands)	2021			2020
Deferred Tax Assets:
Pensions	$	537		$	4,935
Deferred revenue		3,444			3,073
Other accruals and reserves		13,331			14,960
Legal and environmental accruals		7,385			7,055
Deferred compensation		16,210			16,222
Bad debt and rebate reserves		2,706			2,821
Non-U.S. subsidiaries net operating loss carryforwards		1,494			2,495
Amortization of intangibles		5,092			—
Inventories		3,108			—
Tax credit carryforwards		2,829			4,713
	$	56,136		$	56,274
Deferred Tax Liabilities:
Depreciation	$	(42,299	)	$	(62,986	)
Unrealized foreign exchange loss		(2,908	)		(2,444	)
Amortization of intangibles		—			(842	)
Inventories		—			(2,504	)
Other		(1,614	)		(386	)
	$	(46,821	)	$	(69,162	)
Valuation Allowance	$	(862	)	$	(896	)
Net Deferred Tax Assets (Liabilities)	$	8,453		$	(13,784	)
Reconciliation to Consolidated Balance Sheet:
Non-current deferred tax assets (in other non-current assets)		20,944			6,961
Non-current deferred tax liabilities		(12,491	)		(20,745	)
Net Deferred Tax Assets (Liabilities)	$	8,453		$	(13,784	)

Schedule of Reconciliations of Unrecognized Tax Benefits

Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2021, 2020 and 2019:

(In thousands)	2021			2020			2019
Unrecognized tax benefits, opening balance	$	4,735		$	3,273		$	168
Gross increases – tax positions in prior period		938			190			2,760
Gross increases – current period tax positions		1,662			1,288			355
Foreign currency translation		(14	)		15			7
Lapse of statute of limitations		(29	)		(31	)		(17	)
Unrecognized tax benefits, ending balance	$	7,292		$	4,735		$	3,273