Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Earnings before income taxes consist of the following:

Significant components of income tax provision/(benefit) are as follows:



	Years Ended December 31,
	2019			2018			2017
Current:
U.S.	$	(391	)	$	(397	)	$	1,635
Non-U.S.	10,666			12,538			7,150
Total Current	10,275			12,141			8,785
Deferred:
U.S.	558			(330		)	17,597
Non-U.S.	3,287			(240		)	(577		)
Total Deferred	3,845			(570		)	17,020
Total provision for income taxes	$	14,120		$	11,571		$	25,805

Significant components of our deferred tax assets and liabilities are as follows:



	As of December 31,
	2019			2018
Post-retirement benefits	$	1,100		$	1,061
Inventory reserves	708			1,236
Loss carry-forwards	4,724			4,647
Credit carry-forwards	15,964			16,909
Accrued expenses	4,932			5,685
Research expenditures	17,953			16,847
Operating lease liabilities	6,211			—
Stock compensation	2,232			2,142
Foreign exchange loss	1,986			2,245
Other	230			207
Gross deferred tax assets	56,040			50,979
Depreciation and amortization	12,453			11,500
Pensions	13,552			11,736
Operating lease assets	5,963			—
Subsidiaries' unremitted earnings	1,903			1,258
Gross deferred tax liabilities	33,871			24,494
Net deferred tax assets	22,169			26,485
Deferred tax asset valuation allowance	(8,011		)	(8,274		)
Total net deferred tax assets	$	14,158		$	18,211

The long-term deferred tax assets and long-term deferred tax liabilities are as follows below:



	As of December 31,
	2019			2018
Non-current deferred tax assets	$	19,795		$	22,201
Non-current deferred tax liabilities	$	(5,637	)	$	(3,990	)
Total net deferred tax assets	$	14,158		$	18,211

The following table reconciles taxes at the U.S. federal statutory rate to the effective income tax rate:



	Years Ended December 31,
	2019		2018		2017
Taxes at the U.S. statutory rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal income tax benefit	0.4	%	1.2	%	1.1	%
Non-U.S. earnings taxed at rates different than the U.S. statutory rate	1.3	%	0.8	%	(9.0	)%
Foreign source earnings, net of associated foreign tax credits	0.3	%	4.1	%	0.1	%
Benefit of tax credits	(1.5	)%	(0.9	)%	(1.4	)%
Non-deductible expenses	4.1	%	1.3	%	1.5	%
Stock compensation - excess tax benefits	(1.1	)%	(0.9	)%	(1.5	)%
Adjustment to valuation allowances	(0.4	)%	(0.6	)%	(4.4	)%
Other changes in tax laws and rates	0.1	%	(6.1	)%	—	%
Change in unrecognized tax benefits	3.3	%	(1.7	)%	2.0	%
Impacts of unremitted foreign earnings	1.3	%	1.1	%	0.9	%
Impacts related to the 2017 Tax Cuts and Jobs Act	—	%	(0.6	)%	44.7	%
Other	(0.7	)%	1.2	%	(4.9	)%
Effective income tax rate	28.1	%	19.9	%	64.1	%

A reconciliation of the beginning and ending unrecognized tax benefits is provided below:



	As of December 31,
	2019			2018
Balance at January 1	$	3,649		$	4,670
Increase related to current year tax positions	2,834			55
(Decrease) increase related to prior year tax positions	(10		)	46
Decrease related to lapse in statute of limitation	(1,457		)	(1,076		)
Decrease related to settlements with taxing authorities	—			(46		)
Balance at December 31	$	5,016		$	3,649