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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Earnings before income taxes consist of the following:

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

	Years Ended December 31,
	2020		2019		2018
Current:
U.S.	$	211	$	(391)	$	(397)
Non-U.S.		11,275		10,666		12,538
Total Current		11,486		10,275		12,141
Deferred:
U.S.		(2,815)		558		(330)
Non-U.S.		2,122		3,287		(240)
Total Deferred		(693)		3,845		(570)
Total provision for income taxes	$	10,793	$	14,120	$	11,571

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

	As of December 31,
	2020		2019
Post-retirement benefits	$	1,259	$	1,100
Inventory reserves		477		708
Loss carry-forwards		5,128		4,724
Credit carry-forwards		17,401		15,964
Accrued expenses		5,693		4,932
Research expenditures		18,893		17,953
Operating lease liabilities		6,012		6,211
Stock compensation		1,969		2,232
Foreign exchange loss		2,166		1,986
Other		872		230
Gross deferred tax assets		59,870		56,040
Depreciation and amortization		13,004		12,453
Pensions		12,557		13,552
Operating lease assets		5,703		5,963
Subsidiaries' unremitted earnings		3,046		1,903
Gross deferred tax liabilities		34,310		33,871
Net deferred tax assets		25,560		22,169
Deferred tax asset valuation allowance		(8,320)		(8,011)
Total net deferred tax assets	$	17,240	$	14,158

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

	As of December 31,
	2020		2019
Non-current deferred tax assets	$	24,250	$	19,795
Non-current deferred tax liabilities	$	(7,010)	$	(5,637)
Total net deferred tax assets	$	17,240	$	14,158

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

	Years Ended December 31,
	2020	2019		2018
Taxes at the U.S. statutory rate	21.0%	21.0%		21.0%
State income taxes, net of federal income tax benefit	(0.1)%	0.4%		1.2%
Non-U.S. earnings taxed at rates different than the U.S. statutory rate	(0.9)%	1.3%		0.8%
Foreign source earnings, net of associated foreign tax credits	(0.7)%	0.3%		4.1%
Benefit of tax credits	(0.7)%	(1.5)%		(0.9)%
Non-deductible expenses	(0.5)%	4.1%		1.3%
Stock compensation - excess tax benefits	(0.1)%	(1.1)%		(0.9)%
Adjustment to valuation allowances	1.6%	(0.4)%		(0.6)%
Other changes in tax laws and rates	—	0.1%		(6.1)%
Change in unrecognized tax benefits	(0.7)%	3.3%		(1.7)%
Impacts of unremitted foreign earnings	5.2%	1.3%		1.1%
Impacts related to the 2017 Tax Cuts and Jobs Act	—		—%	(0.6)%
Other	(0.4)%	(0.7)%		1.2%
Effective income tax rate	23.7%	28.1%		19.9%

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

	As of December 31,
	2020		2019
Balance at January 1	$	5,016	$	3,649
Increase related to current year tax positions		880		2,834
Decrease related to prior year tax positions		(1,156)		(10)
Decrease related to lapse in statute of limitation		—		(1,457)
Decrease related to settlements with taxing authorities		(1,612)		—
Balance at December 31	$	3,128	$	5,016