Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income (loss) from continuing operations before income taxes and income tax expense (benefit) for continuing operations are as follows:


(In thousands)	2021		2020		2019
Income (loss) from continuing operations before income taxes:
Domestic	$	22,885	$	(58,033)	$	52,536
Foreign	44,336		32,987		19,470
Total	$	67,221	$	(25,046)	$	72,006
Current income tax expense (benefit):
Federal	$	1,232	$	4,777	$	7,551
State	764		136		1,558
Foreign	13,521		2,374		579
Total	15,517		7,287		9,688
Deferred income tax expense (benefit):
Federal	(7,862)		(18,191)		15,298
State	125		(640)		187
Foreign	1,504		3,331		(11,628)
Total	(6,233)		(15,500)		3,857
Total income tax expense (benefit)	$	9,284	$	(8,213)	$	13,545


	2021			2020			2019
(In thousands, except percentages)	Amount		%	Amount		%	Amount		%
Income tax expense (benefit) at federal statutory rate	$	14,116	21.0	$	(5,260)	21.0	$	15,121	21.0
Foreign rate differences	8,269		12.3	4,554		(18.2)	2,247		2.9
Tax on Prodepe tax incentive	2,858		4.3	(801)		3.2	(714)		(1.0)
Foreign currency translation variation on intercompany loans	1,374		2.0	—		—	—		—
Non-deductible other	1,053		1.6	208		(0.8)	637		0.9
State taxes, net of federal income tax benefit	933		1.4	(373)		1.5	1,050		1.5
Tax contingency accruals and tax settlements	202		0.3	(58)		0.2	(2,543)		(3.5)
Foreign derived intangible income deduction	—		—	—		—	(319)		(0.4)
Valuation allowance due to foreign losses and impairments	—		—	—		—	(14,350)		(19.9)
Dividend received deduction net of foreign withholding tax	(109)		(0.2)	(52)		0.2	(1,016)		(1.4)
Changes in estimates related to prior year tax provision	(383)		(0.6)	(2,472)		9.9	(135)		(0.2)
Research and development tax credit	(928)		(1.4)	(633)		2.5	(523)		(0.7)
Valuation allowance for capital loss carryforwards	(5,415)		(8.1)	52		(0.2)	60		0.1
U.S. tax on foreign branch income	(5,667)		(8.4)	1,409		(5.6)	16,029		22.3
Brazilian tax incentive	(7,019)		(10.4)	(4,787)		19.1	(1,999)		(2.8)
Income tax expense (benefit) at effective income tax rate	$	9,284	13.8	$	(8,213)	32.8	$	13,545	18.8

liabilities and deferred income tax assets at December 31, 2021 and 2020, are as follows:


(In thousands)	2021		2020
Deferred income tax liabilities:
Amortization of goodwill and identifiable intangibles	$	10,215	$	9,520
Depreciation	12,902		10,844
Foregone tax credits on foreign branch income	4,796		5,714
Excess of carrying value over tax basis of investment in kaléo	—		4,905

Right-of-use leased assets	2,767		2,979
Other	520		944
Total deferred income tax liabilities	31,200		34,906
Deferred income tax assets:
Pensions	5,632		25,576
Employee benefits	7,791		9,757
Excess capital losses	1,097		7,462
Inventory	3,775		2,613
Asset write-offs, divestitures and environmental accruals	1,173		2,904
Tax benefit on U.S. federal, state and foreign NOL and credit carryforwards	33,922		18,305

Other	146		275
Lease liabilities	2,977		3,144
Tax basis remaining for installment sale - kaléo	1,092		—
Foreign currency translation gain adjustment	1,970		1,423
Deferred income tax assets before valuation allowance	59,575		71,459
Less: Valuation allowance	12,652		17,485
Total deferred income tax assets	46,923		53,974
Net deferred income tax (assets) liabilities	$	(15,723)	$	(19,068)
Amounts recognized in the consolidated balance sheets:
Deferred income tax assets (noncurrent)	$	15,723	$	19,068
Deferred income tax liabilities (noncurrent)	—		—
Net deferred income tax assets (liabilities)	$	15,723	$	19,068

A reconciliation of the Company’s unrecognized uncertain tax positions since January 1, 2019, is shown below:


	Years Ended December 31,
(In thousands)	2021		2020		2019
Balance at beginning of period	$	628	$	881	$	3,361
Increase (decrease) due to tax positions taken in:
Current period	—		12		12
Prior period	40		—		49
Increase (decrease) due to settlements with taxing authorities	—		—		(151)
Reductions due to lapse of statute of limitations	(20)		(265)		(2,390)
Balance at end of period	$	648	$	628	$	881

Additional information related to unrecognized uncertain tax positions since January 1, 2019 is summarized below:


	Years Ended December 31,
(In thousands)	2021		2020		2019
Gross unrecognized tax benefits on uncertain tax positions (reflected in current income tax, other noncurrent liability accounts, or deferred tax assets in the balance sheet)	$	648	$	628	$	881
Deferred income tax assets related to unrecognized tax benefits on uncertain tax positions (reflected in deferred income tax accounts in the balance sheet)	48		(110)		(163)
Net unrecognized tax benefits on uncertain tax positions, which would impact the effective tax rate if recognized	696		518		718
Interest and penalties accrued on deductions taken relating to uncertain tax positions (approximately $26, $2 and $(144) reflected in income tax expense in the income statement in 2021, 2020 and 2019, respectively, with the balance shown in current income tax and other noncurrent liability accounts in the balance sheet)	133		102		100
Related deferred income tax assets recognized on interest and penalties	(31)		(24)		(23)
Interest and penalties accrued on uncertain tax positions net of related deferred income tax benefits, which would impact the effective tax rate if recognized	102		78		77
Total net unrecognized tax benefits on uncertain tax positions reflected in the balance sheet, which would impact the effective tax rate if recognized	$	798	$	596	$	795