Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

(In thousands)	2023		2022		2021
Components of income before income taxes
U.S. income (loss)	$	80,229	$	170,426	$	(59,746)
Non-U.S. income	126,459		68,107		83,350
Income before income taxes	$	206,688	$	238,533	$	23,604
Provision for income taxes
Current
Federal	$	49,642	$	26,022	$	13,179
State	9,510		7,708		5,000
Non-U.S.	27,101		20,002		22,487
Total current provision	$	86,253	$	53,732	$	40,666
Deferred
Federal	$	54,272	$	7,350	$	(29,631)
State	12,914		862		(7,204)
Non-U.S.	(5,334)		(3,041)		(2,015)
Total deferred provision (benefit)	61,852		5,171		(38,850)
Provision for income taxes	$	148,105	$	58,903	$	1,816

On June 10, 2021 the United Kingdom ("U.K.") Parliament announced royal assent for Bill No. 12, on the Finance Act of 2021. This bill increased the statutory rate from 19% to 25% in April 2023. The Company recorded this impact on its deferred tax balances in the second quarter of 2021.

Reconciliation of the U.S. federal income tax rates to our effective tax rate:

	2023		2022		2021
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Divestiture (Note 20)	46.6	%	—	%	—	%
State income taxes-U.S.	3.7	%	2.9	%	(7.0)	%
Nondeductible compensation	1.9	%	1.2	%	15.3	%
Research and development credit	(0.8)	%	(0.4)	%	(5.3)	%
Taxes on non-U.S. income	(0.6)	%	0.1	%	(10.9)	%
Taxes on non-U.S. income - U.S., Canadian & European reorganization	(0.5)	%	—	%	—	%
Employee share-based payments	(0.4)	%	(0.8)	%	(18.3)	%
Valuation allowances	(0.2)	%	0.8	%	7.0	%
Foreign exchange on entity closures	—	%	0.3	%	(0.4)	%
Other	0.9	%	(0.4)	%	6.3	%
Effective income tax rate	71.6	%	24.7	%	7.7	%

Components of deferred tax assets and liabilities:

	December 31,
(In thousands)	2023		2022
Deferred tax assets
Capitalized research and development	$	28,822	$	26,988
Net operating losses and tax credit carryforwards	10,964		10,696
Share-based compensation	5,528		4,562
Inventory	7,281		—
Accrued expenses and other reserves	4,566		5,738
Reserve for doubtful accounts	1,562		—
Product liability	655		72,950
Other	7,218		5,068
Total deferred tax assets	66,596		126,002
Valuation allowances	(9,671)		(10,017)
Net deferred tax assets	56,925		115,985
Deferred tax liabilities
Goodwill and intangibles	(83,100)		(80,383)
Employee benefits	(24,958)		(18,899)
Property, plant and equipment	(15,541)		(18,735)
Other	(2,680)		(4,359)
Total deferred tax liabilities	(126,279)		(122,376)
Net deferred taxes	$	(69,354)	$	(6,391)

At December 31, 2023, we had net operating loss carryforwards of approximately $50.4 million. All net operating loss carryforwards without a valuation allowance may be carried forward for a period of at least six years.

A reconciliation of the change in the tax liability for unrecognized tax benefits for the years ended December 31, 2023 and 2022 is as follows:

(In thousands)	2023		2022
Beginning balance	$	5,192	$	4,937
Adjustments for tax positions related to the current year	—		100
Adjustments for tax positions related to prior years	(1,116)		155
Settlements	—		—
Statute expiration	(992)		—
Ending balance	$	3,084	$	5,192

The total amount of unrecognized tax benefits, if recognized, would reduce our future effective tax rate. We have recognized tax benefits associated with these liabilities in the amount of $0.6 million and $2.7 million at December 31, 2023 and 2022, respectively.

We recognize interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. Our liability for accrued interest and penalties related to uncertain tax positions was $0.2 million and $1.1 million at December 31, 2023 and 2022, respectively.

We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our consolidated financial statements.

We file a U.S. federal income tax return along with various state and foreign income tax returns. Examinations of our U.S. federal returns have been completed through 2018. Various state and foreign income tax returns may be subject to tax audits for periods after 2015.