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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign

Income from continuing operations before income taxes and Income tax expense consisted of the following:


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Income from continuing operations before income taxes:
Domestic operations	$	(19,234)	$	10,140	$	14,505
Foreign operations	319,485		308,948		191,334
	$	300,251	$	319,088	$	205,839
Income tax expense:
Current:
Federal	$	8,928	$	18,477	$	9,262
State	2,451		1,797		921
Foreign	77,728		68,779		49,819
	89,107		89,053		60,002
Deferred:
Federal	(7,501)		(12,700)		(8,698)
State	358		161		(677)
Foreign	(12,794)		3,895		(4,656)
	(19,937)		(8,644)		(14,031)
	$	69,170	$	80,409	$	45,971

Schedule of Components of Income Tax Expense (Benefit)

Income from continuing operations before income taxes and Income tax expense consisted of the following:


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Income from continuing operations before income taxes:
Domestic operations	$	(19,234)	$	10,140	$	14,505
Foreign operations	319,485		308,948		191,334
	$	300,251	$	319,088	$	205,839
Income tax expense:
Current:
Federal	$	8,928	$	18,477	$	9,262
State	2,451		1,797		921
Foreign	77,728		68,779		49,819
	89,107		89,053		60,002
Deferred:
Federal	(7,501)		(12,700)		(8,698)
State	358		161		(677)
Foreign	(12,794)		3,895		(4,656)
	(19,937)		(8,644)		(14,031)
	$	69,170	$	80,409	$	45,971

Schedule of Effective Income Tax Rate Reconciliation

The Company’s Income tax expense differs from the amount that would be computed by applying the U.S. federal statutory rate as follows:


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Taxes calculated at the U.S. federal statutory rate	$	63,053	$	67,008	$	42,820
State taxes	2,809		1,933		245
Effect of tax rates on international operations	(9,010)		(8,879)		(572)
Changes in tax reserves	(350)		2,734		1,346
Non-taxable dividends	—		(46)		(2,675)
Research and development tax credits	(542)		(587)		(1,351)
Effect of U.S. taxation on international operations	310		(313)		(1,634)
Permanent differences, net	7,209		483		1,284
Provision to return	(7,055)		(7,415)		1,053
Withholding taxes	12,133		9,567		6,108
Capital gain	(3,655)		12,371		—
Valuation Allowance	4,503		3,737
Other	(235)		(184)		(653)
Income tax expense	$	69,170	$	80,409	$	45,971

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that gave rise to the significant components of deferred tax assets and liabilities are presented below:


	December 31,
	2022		2021
	(In thousands)
Deferred tax assets:
Post-retirement benefit obligation	$	5,761	$	4,430
Expenses currently not deductible	36,320		29,245
Net operating loss carryforward	111,497		22,374
Tax credit carryforward	10,320		—
Depreciation and amortization	9,124		16,450
Inventory	5,685		138
Other	36,873		24,648
Valuation allowance	(88,202)		(15,465)
Deferred tax assets, net	$	127,378	$	81,820
Deferred tax liabilities:
Depreciation and amortization	$	(121,858)	$	(135,726)
Outside basis differences and other	(102,336)		(108,542)
Total deferred tax liabilities	$	(224,194)	$	(244,268)
Total deferred tax liabilities, net	$	(96,816)	$	(162,448)

Deferred tax assets and liabilities have been classified as noncurrent and are included in Other assets and Other liabilities in the accompanying Consolidated and Combined Balance Sheets on a net jurisdictional basis as follows:


	December 31,
	2022		2021
	(In thousands)
Other assets	$	42,860	$	9,357
Other liabilities	(139,676)		(171,805)
Deferred tax liability, net	$	(96,816)	$	(162,448)

Schedule of Income Tax Contingencies

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (inclusive of associated interest and penalties):


	(In thousands)













Balance, January 1, 2020	$	34,014
Addition for tax positions taken in prior periods	2,785
Addition for tax positions taken in the current period	569
Reductions resulting from a lapse of applicable statute of limitations	(1,827)
Other, including the impact of foreign currency translation and U.S. tax rate changes	(340)
Balance, December 31, 2020	35,201
Addition for tax positions taken in prior periods	738
Addition for tax positions taken in the current period	2,987
Reductions related to settlements with taxing authorities	(425)
Reductions resulting from a lapse of applicable statute of limitations	(565)
Other, including the impact of foreign currency translation and U.S. tax rate changes	(255)
Balance, December 31, 2021	37,681
Addition for tax positions taken in prior periods	1,971
Addition for tax positions taken in the current period	1,171
Reductions related to settlements with taxing authorities	(922)
Transfer from Former Parent, impact of foreign currency translation and other	(2,801)
Other, including the impact of foreign currency translation	(16,897)
Balance, December 31, 2022	$	20,203