Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2020 |
Income Tax Disclosure [Abstract] |
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Schedule of Income before Income Tax, Domestic and Foreign |
Income (loss) from continuing operations before income taxes and equity income as reported on the Consolidated Statements of Operations consists of the following: | | | | | | | | | | | | | | | | | | | | | (In thousands) | | 2020 | | 2019 | | 2018 | U.S. | | $ | (67,276) | | | $ | (13,934) | | | $ | 28,281 | | International | | 36,151 | | | 70,405 | | | 85,368 | | Total income (loss) from continuing operations before income taxes and equity income | | $ | (31,125) | | | $ | 56,471 | | | $ | 113,649 | |
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Schedule of Components of Income Tax Expense (Benefit) |
Income tax expense (benefit) as reported on the Consolidated Statements of Operations consists of the following: | | | | | | | | | | | | | | | | | | | | | (In thousands) | | 2020 | | 2019 | | 2018 | Income tax expense (benefit): | | | | | | | Currently payable: | | | | | | | U.S. federal | | $ | (12,116) | | | $ | 903 | | | $ | (7) | | U.S. state | | 575 | | | 233 | | | 177 | | International | | 19,216 | | | 23,775 | | | 17,127 | | Total income taxes currently payable | | 7,675 | | | 24,911 | | | 17,297 | | Deferred U.S. federal | | (7,452) | | | (5,924) | | | 1,854 | | Deferred U.S. state | | (2,646) | | | (1,303) | | | (10,911) | | Deferred international | | (356) | | | 2,530 | | | (2,741) | | Total income tax expense (benefit) from continuing operations | | $ | (2,779) | | | $ | 20,214 | | | $ | 5,499 | |
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Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the normal expected statutory U.S. federal income tax expense (benefit) to the actual Income tax expense (benefit) from continuing operations as reported on the Consolidated Statements of Operations is as follows: | | | | | | | | | | | | | | | | | | | | | (In thousands) | | 2020 | | 2019 | | 2018 | U.S. federal income tax expense (benefit) | | $ | (6,536) | | | $ | 11,859 | | | $ | 23,866 | | U.S. state income taxes, net of federal income tax benefit | | (1,589) | | | (274) | | | 566 | | U.S. other domestic deductions and credits | | (3,435) | | | (1,322) | | | (2,407) | | Difference in effective tax rates on international earnings and remittances | | 9,450 | | | 9,550 | | | 5,394 | | Uncertain tax position contingencies and settlements | | 289 | | | 310 | | | (1,180) | | Changes in realization on beginning of the year deferred tax assets | | (370) | | | 2,343 | | | (6,937) | | U.S. non-deductible expenses | | 2,363 | | | 2,554 | | | 1,128 | | Impact of U.S. tax reform | | — | | | 1,643 | | | (11,686) | | Net operating loss carryback | | (2,696) | | | — | | | — | | State deferred tax rate change | | (41) | | | (3,353) | | | — | | Foreign derived intangible income deduction | | — | | | — | | | (2,366) | | Employee share-based payments | | (214) | | | (3,064) | | | (736) | | Other, net | | — | | | (32) | | | (143) | | Total income tax expense (benefit) from continuing operations | | $ | (2,779) | | | $ | 20,214 | | | $ | 5,499 | |
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Schedule of Deferred Tax Assets and Liabilities |
The income tax effects of the temporary differences giving rise to the Company's deferred tax assets and liabilities at December 31, 2020 and 2019 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2020 (b) | | 2019 (b) | (In thousands) | | Asset | | Liability | | Asset | | Liability | Depreciation and amortization (a) | | $ | — | | | $ | 78,029 | | | $ | — | | | $ | 57,591 | | Right-of-use assets (a) | | | | 23,507 | | | | | 15,567 | | Operating lease liabilities (a) | | 22,968 | | | | | 14,929 | | | | Expense accruals | | 20,844 | | | — | | | 18,421 | | | — | | Inventories | | 2,884 | | | — | | | 4,568 | | | — | | Provision for receivables | | 4,903 | | | — | | | 1,109 | | | — | | Deferred revenue | | — | | | 4,425 | | | — | | | 3,222 | | Operating loss carryforwards | | 101,022 | | | — | | | 85,378 | | | — | | Foreign tax credit carryforwards | | 11,445 | | | — | | | 24,219 | | | — | | | | | | | | | | | Pensions | | 49,641 | | | — | | | 38,766 | | | — | | Currency adjustments | | 797 | | | — | | | 462 | | | — | | Deferred financing costs | | — | | | 269 | | | — | | | 566 | | | | | | | | | | | Post-retirement benefits | | 340 | | | — | | | 411 | | | — | | Stock based compensation | | 6,696 | | | — | | | 6,572 | | | — | | Other | | — | | | 74 | | | — | | | 769 | | Subtotal | | 221,540 | | | 106,304 | | | 194,835 | | | 77,715 | | Valuation allowance | | (140,615) | | | — | | | (127,074) | | | — | | Total deferred income taxes | | $ | 80,925 | | | $ | 106,304 | | | $ | 67,761 | | | $ | 77,715 | |
(a)The increase in 2020 is primarily related to the ESOL acquisition. See Note 3, Acquisitions and Dispositions, for additional information. The 2019 disclosure has been adjusted to reflect the gross deferred tax right-of-use asset and related gross deferred lease liability. (b) Does not include approximately $1.2 billion of statutory loss carryforwards within Luxembourg for which the Company considers the utilization of these attributes remote and as such no deferred tax asset or corresponding valuation allowance has been recorded.
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Summary of Income Tax Contingencies |
A reconciliation of the change in the unrecognized income tax benefits balance from January 1, 2018 to December 31, 2020 is as follows: | | | | | | | | | | | | | | | | | | | | | (In thousands) | | Unrecognized Income Tax Benefits | | Deferred Income Tax Benefits | | Unrecognized Income Tax Benefits, Net of Deferred Income Tax Benefits | Balances, January 1, 2018 | | $ | 3,623 | | | $ | (31) | | | $ | 3,592 | | Additions for tax positions related to the current year (includes currency translation adjustment) | | 196 | | | (1) | | | 195 | | | | | | | | | | | | | | | | Statutes of limitation expirations | | (1,397) | | | 6 | | | (1,391) | | | | | | | | | Balance at December 31, 2018 | | 2,422 | | | (26) | | | 2,396 | | Additions for tax positions related to the current year (includes currency translation adjustment) | | 414 | | | (7) | | | 407 | | Additions for tax positions related to prior years (includes currency translation adjustment) | | 681 | | | — | | | 681 | | | | | | | | | Statutes of limitation expirations | | (326) | | | 2 | | | (324) | | Settlements | | (62) | | | 9 | | | (53) | | Balance at December 31, 2019 | | 3,129 | | | (22) | | | 3,107 | | | | | | | | | Additions for tax positions related to the current year (includes currency translation adjustment) | | 596 | | | (2) | | | 594 | | | | | | | | | Other reductions for tax positions related to prior years | | (771) | | | — | | | (771) | | Statutes of limitation expirations | | (58) | | | 2 | | | (56) | | | | | | | | | Total unrecognized income tax benefits that, if recognized, would impact the effective income tax rate at December 31, 2020 | | $ | 2,896 | | | $ | (22) | | | $ | 2,874 | |
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