Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

Provision for income taxes consisted of the following:


	Years ended December 31,
(in thousands)	2023		2022		2021
Income before income taxes:
U.S.	$	68,872	$	20,422	$	63,708
Non-U.S.	91,584		111,558		102,223
	$	160,456	$	131,980	$	165,931
Income tax expense/(benefit)
Current:
Federal	$	17,005	$	9,781	$	3,348
State	2,030		5,126		2,663
Non-U.S.	34,110		28,605		29,319
	$	53,145	$	43,512	$	35,330
Deferred:
Federal	$	(1,700)	$	(9,592)	$	9,911
State	863		(1,866)		(24)
Non-U.S.	(3,462)		3,418		1,946
	$	(4,299)	$	(8,040)	$	11,833
Total income tax expense	$	48,846	$	35,472	$	47,163

Schedule of Reconciliation of the U.S. Federal Statutory Tax Rate to the Company's Effective Income Tax Rate

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:


	Years ended December 31,
	2023		2022		2021
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	1.9		2.5		1.8
Non-U.S. local income taxes	1.4		3.8		2.5
U.S. permanent adjustments	0.8		1.4		1.1
Foreign permanent adjustments	0.7		(2.1)		0.3
Foreign rate differential	2.0		3.1		1.2
Net U.S. tax on non-U.S. earnings and foreign withholdings	5.1		3.5		2.1
Provision for/(resolution) of tax audits and contingencies, net	0.3		0.3		0.1
U.S. Pension Settlement - Release of Residual Tax Effect	—		(4.0)		—
Change in valuation allowances	(1.2)		(0.6)		0.6
Impact of amended tax returns	—		(0.1)		(1.3)
Return to provision	(1.2)		(1.1)		(1.4)
Other adjustments	(0.4)		(0.8)		0.4
Effective income tax rate	30.4	%	26.9	%	28.4	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:


For the year ended December 31	U.S.				Non-U.S.
(in thousands)	2023		2022		2023		2022
Deferred tax assets:
Accounts receivable, net	$	528	$	436	$	1,489	$	1,300
Inventories	1,608		1,807		1,429		1,111
Incentive compensation	5,843		4,619		1,162		1,333
Property, plant, equipment and intangibles, net	—		—		—		1,892
Pension, post retirement benefits - non-current	6,939		9,141		4,899		—
Tax loss carryforwards	110		239		29,811		14,201
Tax credit carryforwards	3,167		2,635		19		—
Leases	8,685		7,597		2,463		611
Reserves	877		721		—		—
Deferred revenue	244		761		—		—
Other	—		47		1,050		1,707
Deferred tax assets before valuation allowance	28,001		28,003		42,322		22,155
Less: valuation allowance	(118)		(8)		(9,730)		(9,778)
Total deferred tax assets	$	27,883	$	27,995	$	32,592	$	12,377
Deferred tax liabilities:
Unrepatriated foreign earnings	$	4,270	$	5,827	$	—	$	—
Property, plant, equipment and intangibles, net	8,433		3,084		19,000		—
Basis difference in partner capital	1,719		2,161		—		—
Basis difference in investment	4,192		4,173		—		—
Derivatives	3,009		5,941		109		—
Leases	8,091		11,609		2,331		515
Deferred revenue	—		—		9,843		6,440
Other	117		—		—		515
Total deferred tax liabilities	29,831		32,795		31,283		7,470
Net deferred tax (liability)/asset	$	(1,948)	$	(4,800)	$	1,309	$	4,907

Schedule of Operating and Capital Loss and Tax Credit Carryforwards

As of December 31, 2023, the Company's net operating loss, capital loss and tax credit carryforwards were as follows:


(in thousands)	Expiration Period	Net Operating and Capital Loss Carryforwards		Tax Credit Carryforwards
Jurisdiction
U.S. Federal	2025 - 2040	$	—	$	2,626
U.S. State	2027 - 2042	1,889		541
Non-U.S.	2025 - 2033	12,983		—
Non-U.S.	Indefinite	115,787		—
Balance at end of year		$	130,659	$	3,167

Schedule of Unrecognized Tax Benefits

The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits. If recognized, the $2.7 million would impact the effective tax rate as of December 31, 2023 as follows:


(in thousands)	2023		2022		2021
Unrecognized tax benefits balance at January 1,	$	792	$	1,459	$	5,491
Increase in gross amounts of tax positions related to prior years	2,373		399		278
Decrease in gross amounts of tax positions related to prior years	—		(929)		(4,236)
Increase in gross amounts of tax positions related to current years	196		37		—
Decrease due to lapse in statute of limitations	(656)		—		(39)
Currency translation	36		(174)		(35)
Unrecognized tax benefits balance at December 31,	$	2,741	$	792	$	1,459