Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

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

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

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.

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