INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES

Components of income (loss) before income taxes

The components of income before income taxes were as follows:

	Year Ended December 31,
	2021		2020		2019
U.S.	$	143,290	$	179,650	$	237,296
Non-U.S.		181,708		84,390		131,197
Total	$	324,998	$	264,040	$	368,493

Components of income tax expense (benefit)

The components of income tax expense (benefit) were as follows:

	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	23,415	$	30,091	$	25,063
Non-U.S.		44,828		18,020		26,540
State and local		10,298		8,770		9,064
		78,541		56,881		60,667
Deferred:
Federal		(21,538)		(1,898)		6,971
Non-U.S.		(4,488)		3,196		6,513
State and local		(4,097)		(283)		1,259
		(30,123)		1,015		14,743
Total	$	48,418	$	57,896	$	75,410

Differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes

The differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes for the three years ended December 31, 2021 were as follows:

	Year Ended December 31,
	2021			2020			2019
Statutory rate applied to pre-tax income	$	68,250		$	55,448		$	77,384
State and local income taxes, net of federal tax benefit		4,005			6,148			8,831
Excess tax benefits resulting from exercises of stock-based compensation		(4,681)			(2,471)			(3,451)
Resolution and settlements to uncertain tax positions		577			(4,146)			(9,432)
Foreign Derived Intangible Income Deduction		(2,197)			(1,267)			(4,315)
Foreign rate variance		2,131			85			7,023
Valuation allowances		(4,209)			4,753			3,198
Research and development credit		(5,300)			(4,400)			(4,786)
Pension plan termination adjustment		(14,711)			—			—
U.S. tax cost (benefit) of foreign source income		3,488			269			1,783
Other		1,065			3,477			(825)
Total	$	48,418		$	57,896		$	75,410
Effective tax rate		14.9	%		21.9	%		20.5	%

Significant components of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities at December 31, 2021 and 2020, were as follows:

	December 31,
	2021		2020
Deferred tax assets:
Tax loss and credit carry-forwards	$	46,889	$	56,076
Inventory		1,929		2,525
Other accruals		13,395		14,084
Employee benefits		28,163		27,673
Pension obligations		9,760		13,021
Other		5,073		4,306
Deferred tax assets, gross		105,209		117,685
Valuation allowance		(55,619)		(65,413)
Deferred tax assets, net		49,590		52,272
Deferred tax liabilities:
Property, plant and equipment		40,422		36,795
Intangible assets		18,253		13,595
Inventory		3,716		5,586
Pension obligations		16,397		16,070
Other		9,202		10,009
Deferred tax liabilities		87,990		82,055
Total deferred taxes	$	(38,400)	$	(29,783)

Summary of the activity related to unrecognized tax benefits

The following table summarizes the activity related to unrecognized tax benefits:

	2021		2020
Balance at beginning of year	$	17,596	$	20,585
Increase related to current year tax provisions		2,693		1,661
Increase/(decrease) related to prior years' tax positions		(17)		683
Decrease related to settlements with taxing authorities		—		(1,476)
Resolution of and other decreases in prior years' tax liabilities		(1,585)		(4,537)
Other		(476)		680
Balance at end of year	$	18,211	$	17,596