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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
We are subject to federal income tax in the U.S., Canada and the U.K., 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 not currently under audit by any of the various state authorities, and 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,
 202220212020
 (In thousands)
Balance at beginning of period$— $5,852 $3,899 
Increases based on tax positions taken in the current year— 964 2,075 
Increases based on tax positions taken in the prior years— — — 
Decreases based on tax positions taken in the prior years— — — 
Decreases due to settlements with tax authorities— (6,775)— 
Decreases due to lapse of applicable statute of limitation— (41)(123)
Other, net— — 1 
Balance at end of period$— $— $5,852 
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, 2022 and 2021 were as follows:
 December 31,
 20222021
 (In thousands)
Deferred tax assets:
Pension liability$11,931 $12,047 
Accrued warranty expense1,694 1,363 
Capitalized Section 174 expenditures11,145 — 
Accrued vacation pay3,246 7,633 
Accrued liabilities for self-insurance (including postretirement health care benefits)17 2,095 
Accrued liabilities for executive and employee incentive compensation12,475 10,733 
Environmental and products liabilities20,983 21,050 
Lease liabilities5,298 3,667 
Investments in joint ventures and affiliated companies1,494 2,283 
Long-term contracts14,442 21,562 
Accrued payroll taxes2,504 4,753 
U.S. federal tax credits and loss carryforward7,113 7,023 
U.S. state tax credits and loss carryforward4,731 4,866 
Foreign tax credit and loss carryforward20,209 16,477 
Other2,719 2,568 
Gross deferred tax assets120,001 118,120 
Valuation allowance for deferred tax assets(13,022)(13,218)
Total deferred tax assets106,979 104,902 
Deferred tax liabilities:
Property, plant and equipment75,334 66,636 
Right-of-use lease assets12,246 11,666 
Intangibles22,404 16,365 
Total deferred tax liabilities109,984 94,667 
Net deferred tax assets (liabilities)$(3,005)$10,235 
The components of Income before Provision for Income Taxes were as follows:
 Year Ended December 31,
 202220212020
 (In thousands)
U.S.$281,677 $343,091 $314,150 
Other than U.S.32,700 52,622 48,022 
Income before Provision for Income Taxes$314,377 $395,713 $362,172 
The components of Provision for Income Taxes were as follows:
 Year Ended December 31,
 202220212020
 (In thousands)
Current:
U.S. – federal$54,683 $31,535 $53,340 
U.S. – state and local5,360 1,030 7,587 
Other than U.S.10,199 16,769 14,159 
Total current70,242 49,334 75,086 
Deferred:
U.S. – federal5,755 40,463 10,852 
U.S. – state and local(34)3,473 (536)
Other than U.S.(206)(3,845)(2,426)
Total deferred5,515 40,091 7,890 
Provision for Income Taxes$75,757 $89,425 $82,976 
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,
 202220212020
U.S. federal statutory tax rate21.0 %21.0 %21.0 %
State and local income taxes1.7 %1.1 %1.9 %
Foreign rate differential0.5 %0.6 %0.6 %
Excess tax deductions on equity compensation(0.1)%(0.1)%(0.3)%
Other1.0 %— %(0.3)%
Effective tax rate24.1 %22.6 %22.9 %
At December 31, 2022, we had a valuation allowance of $13.0 million for deferred tax assets, which we expect cannot be realized through carrybacks, future reversals of existing taxable temporary differences and our estimate of future taxable income. We believe that our remaining deferred tax assets are more likely than not realizable through carrybacks, future reversals of existing taxable temporary differences, our estimate of future taxable income and potential tax planning. Any changes to our estimated valuation allowance could be material to our consolidated financial statements.
The following is an analysis of our valuation allowance for deferred tax assets:
Beginning
Balance		Charges To
Costs and
Expenses		Charged To
Other
Accounts		Ending
Balance
 (In thousands)
Year Ended December 31, 2022$(13,218)196 — $(13,022)
Year Ended December 31, 2021$(12,892)(326)— $(13,218)
Year Ended December 31, 2020$(13,578)771 (85)$(12,892)
We have domestic federal and foreign capital losses of $9.4 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 $9.4 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 $5.9 million ($4.7 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 2023. We are carrying a valuation allowance of $4.6 million ($3.6 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, 2022, the undistributed earnings of these subsidiaries were approximately $277.2 million, and our unrecognized deferred income tax liabilities of approximately $13.9 million would be payable upon the distribution of these earnings. All of our foreign earnings are considered indefinitely reinvested.