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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Tax Provision
The following table summarizes the provision (benefit) for U.S. federal, state, and foreign taxes on income from continuing operations:
Year Ended December 31,
In thousands202020192018
Current:
Federal$(963)$4,859 $(7,695)
State and local1,731 2,179 (362)
Foreign12,409 13,771 14,618 
Total current13,177 20,809 6,561 
Deferred:
Federal(2,852)2,334 (17,463)
State and local(3,340)(1,846)(4,492)
Foreign(60,444)(1,518)(139,915)
Total deferred(66,636)(1,030)(161,870)
Change in valuation allowance53,697 838 142,739 
Total provision (benefit) for income taxes$238 $20,617 $(12,570)
Income Tax Rate Reconciliation A reconciliation of income taxes at the U.S. federal statutory rate of 21% to the consolidated actual tax rate is as follows:
Year Ended December 31,
In thousands202020192018
Income (loss) before income taxes
Domestic$24,010 $57,261 $(50,463)
Foreign(80,649)15,771 (58,688)
Total income before income taxes$(56,639)$73,032 $(109,151)
Expected federal income tax provision$(11,894)$15,337 $(22,922)
Latin America Divestiture10,936 — — 
Change in valuation allowance53,697 838 142,739 
Stock-based compensation(163)(2,130)(104)
Foreign earnings(58,649)(15,610)(132,808)
Tax credits(9,101)(8,794)(10,502)
Uncertain tax positions, including interest and penalties11,144 13,060 7,727 
Change in tax rates557 9,514 335 
State income tax provision (benefit), net of federal effect(1,997)2,805 (4,524)
U.S. tax provision on foreign earnings142 129 25 
Local foreign taxes1,298 1,471 2,540 
Transaction costs— — 974 
Other, net4,268 3,997 3,950 
Total provision (benefit) from income taxes$238 $20,617 $(12,570)
Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities consist of the following:
December 31,
In thousands20202019
Deferred tax assets
Loss carryforwards(1)
$423,013 $343,614 
Tax credits(2)
88,433 98,098 
Accrued expenses47,569 46,846 
Pension plan benefits expense21,735 17,310 
Warranty reserves11,083 12,961 
Depreciation and amortization6,363 6,112 
Equity compensation4,701 4,685 
Inventory valuation1,799 1,069 
Deferred revenue9,705 8,951 
Leases10,872 13,876 
Other deferred tax assets, net10,817 9,777 
Total deferred tax assets636,090 563,299 
Valuation allowance(503,859)(427,030)
Total deferred tax assets, net of valuation allowance132,231 136,269 
Deferred tax liabilities
Depreciation and amortization(39,995)(54,663)
Leases(10,046)(12,976)
Other deferred tax liabilities, net(7,969)(6,540)
Total deferred tax liabilities(58,010)(74,179)
Net deferred tax assets$74,221 $62,090 
(1)For tax return purposes at December 31, 2020, we had U.S. federal loss carryforwards of $125.3 million, which begin to expire in the year 2021. At December 31, 2020, we have net operating loss carryforwards in Luxembourg of $1.4 billion, the majority of which can be carried forward indefinitely, offset by a full valuation allowance. The remaining portion of the loss carryforwards are composed primarily of losses in various other state and foreign jurisdictions. The majority of these losses can be carried forward indefinitely. At December 31, 2020, there was a valuation allowance of $503.9 million primarily associated with foreign loss carryforwards and foreign tax credit carryforwards (discussed below).(2)For tax return purposes at December 31, 2020, we had: (1) U.S. general business credits of $46.9 million, which begin to expire in 2022; (2) U.S. foreign tax credits of $50.8 million, which begin to expire in 2024; and (3) state tax credits of $38.2 million, which begin to expire in 2021.
Summary of Valuation Allowance
Changes in the valuation allowance for deferred tax assets are summarized as follows:
Year Ended December 31,
In thousands202020192018
Balance at beginning of period$427,030 $437,149 $285,784 
Other adjustments23,132 (10,957)8,626 
Additions charged to costs and expenses53,697 838 142,739 
Balance at end of period, noncurrent$503,859 $427,030 $437,149 
Unrecognized Tax Benefits Related To Uncertain Tax Positions
A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:
In thousandsTotal
Unrecognized tax benefits at January 1, 2018$56,702 
Gross increase to positions in prior years22,943 
Gross decrease to positions in prior years(24,949)
Gross increases to current period tax positions63,869 
Audit settlements(2,977)
Decrease related to lapsing of statute of limitations(1,368)
Effect of change in exchange rates(1,662)
Unrecognized tax benefits at December 31, 2018$112,558 
Gross increase to positions in prior years1,067 
Gross decrease to positions in prior years(3,296)
Gross increases to current period tax positions13,762 
Audit settlements— 
Decrease related to lapsing of statute of limitations(1,574)
Effect of change in exchange rates(802)
Unrecognized tax benefits at December 31, 2019$121,715 
Gross increase to positions in prior years633 
Gross decrease to positions in prior years(2,140)
Gross increases to current period tax positions14,821 
Audit settlements(795)
Decrease related to lapsing of statute of limitations(2,381)
Effect of change in exchange rates4,057 
Unrecognized tax benefits at December 31, 2020$135,910 

At December 31,
In thousands202020192018
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate$134,473 $120,410 $111,224 
The net interest and penalties expense recognized were as follows:
Year Ended December 31,
In thousands202020192018
Net interest and penalties expense (benefit)$400 $708 $(990)

At December 31,
In thousands20202019
Accrued interest$3,432 $2,849 
Accrued penalties1,645 1,681 
We file income tax returns in various jurisdictions. We are subject to income tax examination by tax authorities in our major tax jurisdictions as follows:
Tax JurisdictionYears Subject to Audit
U.S. federalSubsequent to 2001
FranceSubsequent to 2012
GermanySubsequent to 2013
United KingdomSubsequent to 2015
IndonesiaSubsequent to 2014
ItalySubsequent to 2015