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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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 thousands	2023		2022		2021
Current:
Federal	$	43,101	$	(2,692)	$	20,197
State and local	12,039		3,698		7,271
Foreign	8,573		25,433		12,594
Total current	63,713		26,439		40,062

Deferred:
Federal	(29,717)		(24,167)		(36,196)
State and local	(6,471)		(4,723)		(12,186)
Foreign	1,071		(23,832)		(12,657)
Total deferred	(35,117)		(52,722)		(61,039)

Change in valuation allowance	472		20,087		(24,535)
Total provision (benefit) for income taxes	$	29,068	$	(6,196)	$	(45,512)

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 thousands	2023		2022		2021
Income (loss) before income taxes
Domestic	$	88,258	$	(19,104)	$	(91,579)
Foreign	39,128		3,361		(32,231)
Total income (loss) before income taxes	$	127,386	$	(15,743)	$	(123,810)

Expected federal income tax provision (benefit)	$	26,751	$	(3,306)	$	(26,000)
Divestitures	—		1,578		—
Change in valuation allowance	472		20,087		(24,535)
Onshoring of international operations	—		—		(10,933)
Stock-based compensation	928		1,611		(2,465)
Foreign earnings	3,921		(22,244)		25,738
Tax credits	(11,906)		(10,967)		(8,988)
Uncertain tax positions, including interest and penalties	(57)		(2,053)		6,693
Change in tax rates	106		385		(1,919)
State income tax provision (benefit), net of federal effect	2,324		(2,873)		(5,722)
U.S. tax provision on foreign earnings	404		146		58
Nondeductible goodwill impairment	—		6,375		—
Local foreign taxes	509		551		667

Other, net	5,616		4,514		1,894
Total provision (benefit) from income taxes	$	29,068	$	(6,196)	$	(45,512)

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following:


	December 31,
In thousands	2023		2022
Deferred tax assets
Loss carryforwards(1)	$	419,327	$	405,674
Tax credits(2)	23,441		44,790
Accrued expenses	37,609		18,774
Pension plan benefits expense	7,671		7,037
Warranty reserves	8,265		8,535
Depreciation and amortization	64,959		72,505
Equity compensation	9,362		7,061
Inventory valuation	4,883		5,356
Deferred revenue	12,264		13,346
Interest	8,228		11,721
Leases	7,173		9,543
Capitalized research costs	113,465		74,058
Other deferred tax assets, net	9,004		7,986
Total deferred tax assets	725,651		686,386
Valuation allowance	(445,170)		(427,423)
Total deferred tax assets, net of valuation allowance	280,481		258,963

Deferred tax liabilities
Depreciation and amortization	(23,313)		(34,909)
Leases	(6,064)		(8,274)
Other deferred tax liabilities, net	(4,590)		(4,631)
Total deferred tax liabilities	(33,967)		(47,814)
Net deferred tax assets	$	246,514	$	211,149

(1)For tax return purposes at December 31, 2023, we had U.S. federal loss carryforwards of $3.6 million, which begin to expire in the year 2024. At December 31, 2023, we have net operating loss carryforwards in Luxembourg of $1.3 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, 2023, there was a valuation allowance of $445.2 million primarily associated with foreign loss carryforwards.

(2)For tax return purposes at December 31, 2023, we had: U.S. general business credits of $5.4 million, which begin to expire in 2043; and state tax credits of $41.9 million, which begin to expire in 2024.

Summary of Valuation Allowance

Changes in the valuation allowance for deferred tax assets are summarized as follows:


	Year Ended December 31,
In thousands	2023		2022		2021
Balance at beginning of period	$	427,423	$	443,593	$	503,859
Other adjustments	17,275		(36,257)		(35,731)
Additions charged to costs and expenses	472		20,087		(24,535)
Balance at end of period, noncurrent	$	445,170	$	427,423	$	443,593

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:


In thousands	Total
Unrecognized tax benefits at January 1, 2021	$	135,910
Gross increase to positions in prior years	570
Gross decrease to positions in prior years	(19,709)
Gross increases to current period tax positions	31,456
Audit settlements	—
Decrease related to lapsing of statute of limitations	(4,535)
Effect of change in exchange rates	(4,163)
Unrecognized tax benefits at December 31, 2021	$	139,529

Gross increase to positions in prior years	14,450
Gross decrease to positions in prior years	(2,786)
Gross increases to current period tax positions	4,702
Audit settlements	—
Decrease related to lapsing of statute of limitations	(23,164)
Effect of change in exchange rates	(2,587)
Unrecognized tax benefits at December 31, 2022	$	130,144

Gross increase to positions in prior years	1,182
Gross decrease to positions in prior years	(8,666)
Gross increases to current period tax positions	10,967
Audit settlements	(3,234)
Decrease related to lapsing of statute of limitations	(2,000)
Effect of change in exchange rates	1,674
Unrecognized tax benefits at December 31, 2023	$	130,067


	December 31,
In thousands	2023		2022		2021
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate	$	129,591	$	130,137	$	139,503

Unrecognized Tax Benefits Related To Uncertain Tax Positions

The net interest and penalties expense recognized were as follows:


	Year Ended December 31,
In thousands	2023		2022		2021
Net interest and penalties expense (benefit)	$	1,821	$	4,665	$	(1,097)

Accrued interest and penalties recognized were as follows:


	December 31,
In thousands	2023		2022
Accrued interest	$	9,794	$	7,575
Accrued penalties	466		567

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 Jurisdiction						Years Subject to Audit
U.S. federal						Subsequent to 2019
France						Subsequent to 2020
Germany						Subsequent to 2013
United Kingdom						Subsequent to 2018
Indonesia						Subsequent to 2017
Italy						Subsequent to 2017

While the above years are subject to audit based on the local jurisdiction's statute of limitations, tax attributes carrying over into the above years may also be adjusted upon audit.