Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

Earnings Before Income Taxes

Earnings before income taxes were as follows:

(In thousands)	2020		2019		2018
United States	$	72,593	$	38,356	$	80,641
Foreign		65,252		62,647		100,884
Total	$	137,845	$	101,003	$	181,525

Provision for Income Taxes

The provision for income taxes was as follows:

(In thousands)	2020			2019			2018
Current income tax expense (benefit):
Federal (1)	$	9,660		$	12,994		$	(9,071	)
State		3,000			2,622			205
Foreign		24,418			22,680			23,187
		37,078			38,296			14,321
Deferred expense (benefit):
Federal		(6,918	)		(17,246	)		3,977
State		(565	)		18			3,164
Foreign		(1,222	)		(2,112	)		2,703
		(8,705	)		(19,340	)		9,844
Income taxes	$	28,373		$	18,956		$	24,165

⁽¹⁾ In 2018, this amount includes $3.9 million of income tax benefit related to a reduction in the 2017 estimate of the one-time transition tax on earnings of foreign subsidiaries enacted by the 2017 Tax Legislation (see discussion below).

Effective Income Tax Rate Reconciliation

The reconciliation between the U.S. Federal tax rate and the actual effective tax rate was as follows:

	2020			2019			2018
Taxes at statutory rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal income tax benefit		2.2			2.2			1.1
Tax credits		(1.5	)		(2.6	)		(1.5	)
Taxes on foreign earnings		2.8			5.1			(0.4	)
Global Intangible Low-Taxed Income		0.1			0.9			0.6
Foreign Derived Tangible Income		(1.1	)		(1.0	)		(0.6	)
Loss on balance sheet hedge		2.0			-			-
Resolution of prior years’ tax matters		(0.1	)		(0.4	)		(0.3	)
Valuation allowance adjustments		(3.7	)		(8.8	)		0.4
2017 Tax Legislation		-			-			(3.7	)
U.S. tax accounting method changes		-			-			(2.9	)
Other, net		(1.1	)		2.4			(0.4	)
Effective tax rate		20.6	%		18.8	%		13.3	%

Tax Effects of Temporary Differences - Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following:

(In thousands)	2020			2019
Deferred tax assets:
Benefit plans	$	7,665		$	6,293
Liabilities and reserves		19,291			21,085
Operating loss and credit carryovers(1)		77,756			82,000
Other		13,228			1,126
Gross deferred tax assets		117,940			110,504
Valuation allowance(1)		(47,813	)		(54,326	)
Deferred tax assets		70,127			56,178
Deferred tax liabilities:
Property, plant, and equipment		(31,709	)		(29,869	)
Goodwill		(22,012	)		(21,744	)
Other		-			(5,192	)
Deferred tax liabilities		(53,721	)		(56,805	)
Net deferred tax assets (liabilities)	$	16,406		$	(627	)

⁽¹⁾ In the first quarter of 2019, the Company recognized an increase in its foreign tax credit carryover and corresponding valuation allowance of $16.2 million, related to the finalization of certain tax regulations.

Reconciliation of Change in Liability for Unrecognized Tax Benefits

A reconciliation of the change in the liability for unrecognized tax benefits for 2020 and 2019 is as follows:

(In thousands)	2020			2019
Balance at beginning of year	$	6,032		$	6,026
Increases for tax positions taken in the current year		805			750
Increases for tax positions taken in prior years		1,267			199
Decreases related to settlements with tax authorities		(386	)		(341	)
Decreases as a result of lapse of the applicable statutes of limitations		(625	)		(591	)
Foreign currency exchange rate changes		352			(11	)
Balance at the end of year	$	7,445		$	6,032