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INCOME TAXES | 12 Months Ended
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Dec. 31, 2020
INCOME TAXES |
INCOME TAXES | NOTE 14 – INCOME TAXES The components of income before income taxes were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year Ended December 31,
​ |  | 2020 |  | 2019 |  | 2018
U.S. | ​ | $ | 179,650 | ​ | $ | 237,296 | ​ | $ | 255,088
Non-U.S. | ​ |  | 84,390 | ​ |  | 131,197 | ​ |  | 113,572
Total | ​ | $ | 264,040 | ​ | $ | 368,493 | ​ | $ | 368,660
​ The components of income tax expense (benefit) were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year Ended December 31,
​ |  | 2020 |  | 2019 |  | 2018
Current: | ​ | ​ |  |  | ​ |  |  | ​ |
Federal | ​ | $ | 30,091 | ​ | $ | 25,063 | ​ | $ | 45,521
Non-U.S. | ​ |  | 18,020 | ​ |  | 26,540 | ​ |  | 28,894
State and local | ​ |  | 8,770 | ​ |  | 9,064 | ​ |  | 10,515
​ | ​ |  | 56,881 | ​ |  | 60,667 | ​ |  | 84,930
Deferred: | ​ |  | ​ | ​ |  |  | ​ |  |
Federal | ​ |  | (1,898) | ​ |  | 6,971 | ​ |  | (691)
Non-U.S. | ​ |  | 3,196 | ​ |  | 6,513 | ​ |  | (3,121)
State and local | ​ |  | (283) | ​ |  | 1,259 | ​ |  | 549
​ | ​ |  | 1,015 | ​ |  | 14,743 | ​ |  | (3,263)
Total | ​ | $ | 57,896 | ​ | $ | 75,410 | ​ | $ | 81,667
​ The differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes for the three years ended December 31, 2020 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year Ended December 31, |
​ |  | 2020 |  | 2019 |  | 2018 |
Statutory rate applied to pre-tax income | ​ | $ | 55,448 | ​ | $ | 77,384 | ​ | $ | 77,419 | ​
State and local income taxes, net of federal tax benefit | ​ |  | 6,149 | ​ |  | 8,830 | ​ |  | 8,844 | ​
Net impact of the U.S. Tax Act | ​ |  | — | ​ |  | — | ​ |  | 4,823 | ​
Foreign withholding taxes | ​ |  | — | ​ |  | — | ​ |  | (4,424) | ​
Resolution and settlements to uncertain tax positions | ​ |  | (4,146) | ​ |  | (9,432) | ​ |  | (457) | ​
Foreign Derived Intangible Income Deduction | ​ |  | (1,267) | ​ |  | (4,315) | ​ |  | (2,647) | ​
Foreign rate variance | ​ |  | 85 | ​ |  | 7,023 | ​ |  | (4,560) | ​
Valuation allowances | ​ |  | 4,753 | ​ |  | 3,198 | ​ |  | 5,596 | ​
Research and development credit | ​ |  | (4,400) | ​ |  | (4,786) | ​ |  | (3,859) | ​
Other | ​ |  | 1,274 | ​ |  | (2,492) | ​ |  | 932 | ​
Total | ​ | $ | 57,896 | ​ | $ | 75,410 | ​ | $ | 81,667 | ​
Effective tax rate | ​ |  | 21.9 | % |  | 20.5 | % |  | 22.2 | %
​ The 2020 effective tax rate was higher than 2019 primarily due to the impact of lower income tax benefits for the settlement of tax items. Total income tax payments, net of refunds, were $59,360 in 2020, $42,880 in 2019 and $85,805 in 2018. Deferred Taxes Significant components of deferred tax assets and liabilities at December 31, 2020 and 2019, were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31,
​ |  | 2020 |  | 2019
Deferred tax assets: | ​ | ​ |  |  | ​ |
Tax loss and credit carry-forwards | ​ | $ | 56,076 | ​ | $ | 64,712
Inventory | ​ |  | 2,525 | ​ |  | 3,442
Other accruals | ​ |  | 14,084 | ​ |  | 13,048
Employee benefits | ​ |  | 27,673 | ​ |  | 24,532
Pension obligations | ​ |  | 13,021 | ​ |  | 11,561
Other | ​ |  | 4,306 | ​ |  | 3,401
Deferred tax assets, gross | ​ |  | 117,685 | ​ |  | 120,696
Valuation allowance | ​ |  | (65,413) | ​ |  | (71,546)
Deferred tax assets, net | ​ |  | 52,272 | ​ |  | 49,150
Deferred tax liabilities: | ​ |  | ​ | ​ |  |
Property, plant and equipment | ​ |  | 36,795 | ​ |  | 39,583
Intangible assets | ​ |  | 13,595 | ​ |  | 16,695
Inventory | ​ |  | 5,586 | ​ |  | 6,427
Pension obligations | ​ |  | 16,070 | ​ |  | 25,171
Other | ​ |  | 10,009 | ​ |  | 11,285
Deferred tax liabilities | ​ |  | 82,055 | ​ |  | 99,161
Total deferred taxes | ​ | $ | (29,783) | ​ | $ | (50,011)
​ At December 31, 2020, certain subsidiaries had net operating loss carry-forwards of approximately $42,824 that expire in various years from 2021 through 2034, plus $174,993 for which there is no expiration date. In assessing the realizability of deferred tax assets, the Company assesses whether it is more-likely-than-not that a portion or all of the deferred tax assets will not be realized. The Company considers the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. At December 31, 2020, a valuation allowance of $65,413 was recorded against certain deferred tax assets based on this assessment. The Company believes it is more-likely-than-not that the tax benefit of the remaining net deferred tax assets will be realized. The amount of net deferred tax assets considered realizable could be increased or reduced in the future if the Company’s assessment of future taxable income or tax planning strategies changes. The Company determined it will repatriate earnings for certain non-U.S. subsidiaries, which are subject to foreign withholding taxes. The Company has estimated the associated tax to be $1,786. The Company considers remaining earnings and outside basis in all other non-U.S. subsidiaries to be indefinitely reinvested and has not recorded any deferred taxes as such estimate is not practicable. Unrecognized Tax Benefits Liabilities for unrecognized tax benefits related to uncertain tax positions are classified as Other liabilities unless expected to be paid in one year. Additionally, to the extent a position would not result in a cash tax liability, those amounts are generally recorded to Deferred income taxes to offset tax attributes. The Company recognizes interest and penalties related to unrecognized tax benefits in Income taxes. Current income tax expense included benefits of $244 for the year ended December 31, 2020 and benefits of $1,957 for the year ended December 31, 2019 for interest and penalties. For those same years, the Company’s accrual for interest and penalties related to unrecognized tax benefits totaled $4,120 and $4,512, respectively. The following table summarizes the activity related to unrecognized tax benefits: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2020 | ​ | 2019
Balance at beginning of year |  | $ | 20,585 |  | $ | 28,804
Increase related to current year tax provisions | ​ |  | 1,661 | ​ |  | 1,204
Increase/(decrease) related to prior years' tax positions | ​ |  | 683 | ​ |  | (101)
Decrease related to settlements with taxing authorities | ​ |  | (1,476) | ​ |  | (3,567)
Resolution of and other decreases in prior years' tax liabilities | ​ |  | (4,537) | ​ |  | (5,692)
Other | ​ |  | 680 | ​ |  | (63)
Balance at end of year | ​ | $ | 17,596 | ​ | $ | 20,585
​ The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $14,202 at December 31, 2020 and $17,552 at December 31, 2019. The Company files income tax returns in the U.S. and various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2016. The Company is currently subject to various state audits and non-U.S. income tax audits. The Company is generally not able to precisely estimate the ultimate settlement amounts or timing until after the close of an audit. The Company evaluates its tax positions and establishes liabilities for unrecognized tax benefits related to uncertain tax positions that may be challenged by local authorities and may not be fully sustained. Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including management’s judgment in the interpretation of applicable tax law, regulation or tax ruling, the progress of tax audits and closing of statutes of limitations. Based on information currently available, management believes that additional audit activity could be completed and/or statutes of limitations may close relating to existing unrecognized tax benefits. It is reasonably possible there could be a further reduction of $1,765 in prior years’ unrecognized tax benefits in 2021.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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