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Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
We are subject to federal income tax in the U.S. and Canada as well as income tax within multiple U.S. state jurisdictions. We provide for income taxes based on the enacted tax laws and rates in the jurisdictions in which we conduct our operations. These jurisdictions may have regimes of taxation that vary with respect to nominal rates and with respect to the basis on which these rates are applied. This variation, along with the changes in our mix of income within these jurisdictions, can contribute to shifts in our effective tax rate from period to period.
We are currently under audit by various state and international authorities. With few exceptions, we do not have any returns under examination for years prior to 2017.
We apply the provisions of FASB Topic Income Taxes regarding the treatment of uncertain tax positions. A reconciliation of unrecognized tax benefits (exclusive of interest and federal and state benefits) is as follows:
 Year Ended December 31,
 202020192018
 (In thousands)
Balance at beginning of period$3,899 $274 $1,680 
Increases based on tax positions taken in the current year2,075 3,736 — 
Increases based on tax positions taken in the prior years— — — 
Decreases based on tax positions taken in the prior years— — — 
Decreases due to settlements with tax authorities— — — 
Decreases due to lapse of applicable statute of limitation(123)(127)(1,379)
Other, net1 16 (27)
Balance at end of period$5,852 $3,899 $274 
The unrecognized tax benefits balance of $5.9 million at December 31, 2020 would reduce our effective tax rate if recognized.
We believe that, within the next 12 months, it is reasonably possible that our entire previously unrecognized tax benefits will be resolved with the appropriate taxing jurisdiction.
Deferred income taxes reflect the net tax effects of temporary differences between the financial and tax bases of assets and liabilities. Significant components of deferred tax assets and liabilities as of December 31, 2020 and 2019 were as follows:
 December 31,
 20202019
 (In thousands)
Deferred tax assets:
Pension liability$31,152 $36,791 
Accrued warranty expense1,338 2,365 
Accrued vacation pay7,442 7,077 
Accrued liabilities for self-insurance (including postretirement health care benefits)2,602 2,991 
Accrued liabilities for executive and employee incentive compensation13,312 12,121 
Environmental and products liabilities20,261 20,100 
Lease liabilities2,155 1,856 
Investments in joint ventures and affiliated companies1,148 4,702 
Long-term contracts15,974 10,790 
Accrued payroll taxes4,828 — 
U.S. federal tax credits and loss carryforward7,224 4,177 
U.S. state tax credits and loss carryforward6,819 7,297 
Foreign tax credit and loss carryforward9,919 5,848 
Other4,961 4,621 
Total deferred tax assets129,135 120,736 
Valuation allowance for deferred tax assets(12,892)(13,578)
Deferred tax assets116,243 107,158 
Deferred tax liabilities:
Property, plant and equipment39,315 23,889 
Right-of-use lease assets10,509 10,446 
Intangibles17,004 14,134 
Total deferred tax liabilities66,828 48,469 
Net deferred tax assets$49,415 $58,689 
The components of Income before Provision for Income Taxes were as follows:
 Year Ended December 31,
 202020192018
 (In thousands)
U.S.$314,150 $270,569 $231,721 
Other than U.S.48,022 43,173 48,424 
Income before Provision for Income Taxes$362,172 $313,742 $280,145 
The components of Provision for Income Taxes were as follows:
 Year Ended December 31,
 202020192018
 (In thousands)
Current:
U.S. – federal$53,340 $47,693 $14,680 
U.S. – state and local7,587 2,180 4,597 
Other than U.S.14,159 15,398 16,117 
Total current75,086 65,271 35,394 
Deferred:
U.S. – federal10,852 7,975 20,327 
U.S. – state and local(536)872 1,564 
Other than U.S.(2,426)(5,053)(4,445)
Total deferred7,890 3,794 17,446 
Provision for Income Taxes$82,976 $69,065 $52,840 
The following is a reconciliation of our income tax provision from the U.S. statutory federal tax rate to our consolidated effective tax rate:
 Year Ended December 31,
 202020192018
U.S. federal statutory tax rate21.0 %21.0 %21.0 %
State and local income taxes1.9 %1.0 %2.1 %
Foreign rate differential0.6 %0.6 %0.7 %
Excess tax deductions on equity compensation(0.3)%(0.7)%(1.0)%
Impact of U.S. Tax Cuts & Jobs Act— %— %(4.7)%
Other(0.3)%0.1 %0.8 %
Effective tax rate22.9 %22.0 %18.9 %
In the year ended December 31, 2018, we recognized $13.5 million of benefit in our provision for income taxes related to the remeasurement of our deferred tax assets as a result of accelerating additional contributions to certain of our domestic pension plans for inclusion in our 2017 U.S. tax return.
At December 31, 2020, we had a valuation allowance of $12.9 million for deferred tax assets, which we expect cannot be realized through carrybacks, future reversals of existing taxable temporary differences and our estimate of future taxable income. We believe that our remaining deferred tax assets are more likely than not realizable through carrybacks, future reversals of existing taxable temporary differences and our estimate of future taxable income. Any changes to our estimated valuation allowance could be material to our consolidated financial statements.
The following is an analysis of our valuation allowance for deferred tax assets:
Beginning
Balance		Charges To
Costs and
Expenses		Charged To
Other
Accounts		Ending
Balance
 (In thousands)
Year Ended December 31, 2020$(13,578)771 (85)$(12,892)
Year Ended December 31, 2019$(13,257)(414)93 $(13,578)
Year Ended December 31, 2018$(15,252)2,017 (22)$(13,257)
We have federal capital losses of $7.2 million available to offset future capital gains. These federal capital losses begin to expire in the year 2023. We are carrying a full valuation allowance of $7.2 million against the deferred tax asset related to these federal capital loss carryforwards.
In addition, we have state credits and state net operating losses of $8.6 million ($6.8 million net of federal tax benefit) available to offset future taxable income in various states. These state net operating loss carryforwards begin to expire in the
year 2021. We are carrying a valuation allowance of $7.2 million ($5.7 million net of federal tax benefit) against the deferred tax asset related to the state credits and state loss carryforwards.
We would be subject to withholding taxes if we were to distribute earnings from certain foreign subsidiaries. As of December 31, 2020, the undistributed earnings of these subsidiaries were approximately $209.8 million, and our unrecognized deferred income tax liabilities of approximately $10.5 million would be payable upon the distribution of these earnings. All of our foreign earnings are considered indefinitely reinvested.