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Income Taxes
 12 Months Ended
Dec. 31, 2021
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 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,
 202120202019
 (In thousands)
Balance at beginning of period$5,852 $3,899 $274 
Increases based on tax positions taken in the current year964 2,075 3,736 
Increases based on tax positions taken in the prior years— — — 
Decreases based on tax positions taken in the prior years— — — 
Decreases due to settlements with tax authorities(6,775)— — 
Decreases due to lapse of applicable statute of limitation(41)(123)(127)
Other, net— 1 16 
Balance at end of period$— $5,852 $3,899 
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, 2021 and 2020 were as follows:
 December 31,
 20212020
 (In thousands)
Deferred tax assets:
Pension liability$12,047 $31,152 
Accrued warranty expense1,363 1,338 
Accrued vacation pay7,633 7,442 
Accrued liabilities for self-insurance (including postretirement health care benefits)2,095 2,602 
Accrued liabilities for executive and employee incentive compensation10,733 13,312 
Environmental and products liabilities21,050 20,261 
Lease liabilities3,667 2,155 
Investments in joint ventures and affiliated companies2,283 1,148 
Long-term contracts21,562 15,974 
Accrued payroll taxes4,753 4,828 
U.S. federal tax credits and loss carryforward7,023 7,224 
U.S. state tax credits and loss carryforward4,866 6,819 
Foreign tax credit and loss carryforward16,477 9,919 
Other2,568 4,961 
Total deferred tax assets118,120 129,135 
Valuation allowance for deferred tax assets(13,218)(12,892)
Deferred tax assets104,902 116,243 
Deferred tax liabilities:
Property, plant and equipment66,636 39,315 
Right-of-use lease assets11,666 10,509 
Intangibles16,365 17,004 
Total deferred tax liabilities94,667 66,828 
Net deferred tax assets$10,235 $49,415 
The components of Income before Provision for Income Taxes were as follows:
 Year Ended December 31,
 202120202019
 (In thousands)
U.S.$343,091 $314,150 $270,569 
Other than U.S.52,622 48,022 43,173 
Income before Provision for Income Taxes$395,713 $362,172 $313,742 
The components of Provision for Income Taxes were as follows:
 Year Ended December 31,
 202120202019
 (In thousands)
Current:
U.S. – federal$31,535 $53,340 $47,693 
U.S. – state and local1,030 7,587 2,180 
Other than U.S.16,769 14,159 15,398 
Total current49,334 75,086 65,271 
Deferred:
U.S. – federal40,463 10,852 7,975 
U.S. – state and local3,473 (536)872 
Other than U.S.(3,845)(2,426)(5,053)
Total deferred40,091 7,890 3,794 
Provision for Income Taxes$89,425 $82,976 $69,065 
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,
 202120202019
U.S. federal statutory tax rate21.0 %21.0 %21.0 %
State and local income taxes1.1 %1.9 %1.0 %
Foreign rate differential0.6 %0.6 %0.6 %
Excess tax deductions on equity compensation(0.1)%(0.3)%(0.7)%
Other— %(0.3)%0.1 %
Effective tax rate22.6 %22.9 %22.0 %
At December 31, 2021, we had a valuation allowance of $13.2 million for deferred tax assets, which we expect cannot be realized through carrybacks, future reversals of existing taxable temporary differences and our estimate of future taxable income. We believe that our remaining deferred tax assets are more likely than not realizable through carrybacks, future reversals of existing taxable temporary differences, our estimate of future taxable income and potential tax planning. Any changes to our estimated valuation allowance could be material to our consolidated financial statements.
The following is an analysis of our valuation allowance for deferred tax assets:
Beginning
Balance		Charges To
Costs and
Expenses		Charged To
Other
Accounts		Ending
Balance
 (In thousands)
Year Ended December 31, 2021$(12,892)(326)— $(13,218)
Year Ended December 31, 2020$(13,578)771 (85)$(12,892)
Year Ended December 31, 2019$(13,257)(414)93 $(13,578)
We have domestic federal and foreign capital losses of $9.3 million available to offset future capital gains. The domestic federal capital losses begin to expire in 2023, while the foreign capital losses have an indefinite carryforward period. We are carrying a full valuation allowance of $9.3 million against the deferred tax asset related to these domestic federal and foreign capital loss carryforwards.
In addition, we have state credits and state net operating losses of $6.1 million ($4.9 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 2022. We are carrying a valuation allowance of $4.9 million ($3.9 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, 2021, the undistributed earnings of these subsidiaries were approximately $248.9 million, and our unrecognized deferred income tax liabilities of approximately $12.4 million would be payable upon the distribution of these earnings. All of our foreign earnings are considered indefinitely reinvested.