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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Reconciliation of Unrecognized Tax Benefits | We apply the provisions of FASB Topic Income Taxes regarding the treatment of uncertain tax positions. As of December 31, 2023 and 2022, we had no uncertain tax positions. Beginning in 2024, certain jurisdictions will implement the Organization for Economic Cooperation and Development's (OECD) Pillar Two rules regarding a 15% global minimum tax. Considering our current global footprint, we do not anticipate that these new rules will materially impact our provision for income taxes.
Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows:
|  | December 31,
|  | 2023 |  | 2022
|  | (In thousands)
Deferred tax assets: |  |  |  |
Pension liability |  | $ | 17,439 |  |  | $ | 11,931 |
Accrued warranty expense |  | 1,641 |  |  | 1,694 |
Capitalized Section 174 expenditures |  | 23,800 |  |  | 11,145 |
Accrued vacation pay |  | 3,103 |  |  | 3,246 |
Accrued liabilities for self-insurance (including postretirement health care benefits) |  | — |  |  | 17 |
Accrued liabilities for executive and employee incentive compensation |  | 13,784 |  |  | 12,475 |
Environmental and products liabilities |  | 20,576 |  |  | 20,983 |
Lease liabilities |  | 4,860 |  |  | 5,298 |
Investments in joint ventures and affiliated companies |  | 224 |  |  | 1,494 |
Long-term contracts |  | 13,363 |  |  | 14,442 |
Accrued payroll taxes |  | — |  |  | 2,504 |
U.S. federal tax credits and loss carryforward |  | 7,055 |  |  | 7,113 |
U.S. state tax credits and loss carryforward |  | 7,935 |  |  | 4,731 |
Foreign tax credit and loss carryforward |  | 22,869 |  |  | 20,209 |
Other |  | 2,018 |  |  | 2,719 |
Gross deferred tax assets |  | 138,667 |  |  | 120,001 |
Valuation allowance for deferred tax assets |  | (17,421) |  |  | (13,022) |
Total deferred tax assets |  | 121,246 |  |  | 106,979 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | 85,661 |  |  | 75,334 |
Right-of-use lease assets |  | 11,550 |  |  | 12,246 |
Accrued liabilities for self-insurance (including postretirement health care benefits) |  | 341 |  |  | — |
Intangibles |  | 21,976 |  |  | 22,404 |
Total deferred tax liabilities |  | 119,528 |  |  | 109,984 |
Net deferred tax assets (liabilities) |  | $ | 1,718 |  |  | $ | (3,005) |
Income from Continuing Operations Before Provision for Income Taxes | The components of Income before Provision for Income Taxes were as follows:
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
|  | (In thousands)
U.S. |  | $ | 282,459 |  |  | $ | 281,677 |  |  | $ | 343,091 |
Other than U.S. |  | 38,941 |  |  | 32,700 |  |  | 52,622 |
Income before Provision for Income Taxes |  | $ | 321,400 |  |  | $ | 314,377 |  |  | $ | 395,713 |
Components of Provision for Income Taxes | The components of Provision for Income Taxes were as follows:
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
|  | (In thousands)
Current: |  |  |  |  |  |
U.S. – federal |  | $ | 69,254 |  |  | $ | 54,683 |  |  | $ | 31,535 |
U.S. – state and local |  | 4,255 |  |  | 5,360 |  |  | 1,030 |
Other than U.S. |  | 6,698 |  |  | 10,199 |  |  | 16,769 |
Total current |  | 80,207 |  |  | 70,242 |  |  | 49,334 |
Deferred: |  |  |  |  |  |
U.S. – federal |  | (8,968) |  |  | 5,755 |  |  | 40,463 |
U.S. – state and local |  | (376) |  |  | (34) |  |  | 3,473 |
Other than U.S. |  | 4,216 |  |  | (206) |  |  | (3,845) |
Total deferred |  | (5,128) |  |  | 5,515 |  |  | 40,091 |
Provision for Income Taxes |  | $ | 75,079 |  |  | $ | 75,757 |  |  | $ | 89,425 |
Reconciliation of Income Tax Provision Related to Continuing Operations from U.S. Statutory Federal Tax Rate | 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,
|  | 2023 |  | 2022 |  | 2021
U.S. federal statutory tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes |  | 1.2 | % |  | 1.7 | % |  | 1.1 | %
Foreign rate differential |  | 0.5 | % |  | 0.5 | % |  | 0.6 | %
Excess tax deductions on equity compensation |  | (0.3) | % |  | (0.1) | % |  | (0.1) | %
Other |  | 1.0 | % |  | 1.0 | % |  | — | %
Effective tax rate |  | 23.4 | % |  | 24.1 | % |  | 22.6 | %
Valuation Allowance for Deferred Tax Assets | 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, 2023 |  | $ | (13,022) |  |  | (4,399) |  |  | — |  |  | $ | (17,421) |
Year Ended December 31, 2022 |  | $ | (13,218) |  |  | 196 |  |  | — |  |  | $ | (13,022) |
Year Ended December 31, 2021 |  | $ | (12,892) |  |  | (326) |  |  | — |  |  | $ | (13,218) |

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