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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes
(In thousands) | 2022 |  | 2021 |  | 2020
Components of income before income taxes |  |  |  |  |
U.S. income (loss) | $ | 170,426 |  |  | $ | (59,746) |  |  | $ | 109,726 |
Non-U.S. income | 68,107 |  |  | 83,350 |  |  | 58,421 |
Income before income taxes | $ | 238,533 |  |  | $ | 23,604 |  |  | $ | 168,147 |
Provision for income taxes |  |  |  |  |
Current |  |  |  |  |
Federal | $ | 26,022 |  |  | $ | 13,179 |  |  | $ | 23,587 |
State | 7,708 |  |  | 5,000 |  |  | 4,896 |
Non-U.S. | 20,002 |  |  | 22,487 |  |  | 16,780 |
Total current provision | $ | 53,732 |  |  | $ | 40,666 |  |  | $ | 45,263 |
Deferred |  |  |  |  |
Federal | $ | 7,350 |  |  | $ | (29,631) |  |  | $ | (573) |
State | 862 |  |  | (7,204) |  |  | (579) |
Non-U.S. | (3,041) |  |  | (2,015) |  |  | (1,102) |
Total deferred provision (benefit) | 5,171 |  |  | (38,850) |  |  | (2,254) |
Provision for income taxes | $ | 58,903 |  |  | $ | 1,816 |  |  | $ | 43,009 |
On June 10, 2021 the United Kingdom ("U.K.") Parliament announced royal assent for Bill No. 12, on the Finance Act of 2021. This bill will increase the statutory rate from 19% to 25% in April 2023. The Company recorded this impact on its deferred tax balances in the second quarter of 2021. Reconciliation of the U.S. federal income tax rates to our effective tax rate:
| 2022 |  | 2021 |  | 2020
U.S. federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes-U.S. | 2.9 | % |  | (7.0) | % |  | 2.0 | %
Nondeductible compensation | 1.2 | % |  | 15.3 | % |  | 3.4 | %
Valuation allowances | 0.8 | % |  | 7.0 | % |  | 0.8 | %
Foreign exchange on entity closures | 0.3 | % |  | (0.4) | % |  | — | %
Taxes on non-U.S. income | 0.1 | % |  | (10.9) | % |  | 2.6 | %
Employee share-based payments | (0.8) | % |  | (18.3) | % |  | (3.9) | %
Research and development credit | (0.4) | % |  | (5.3) | % |  | (1.2) | %
Taxes on non-U.S. income - U.S., Canadian & European reorganization | — | % |  | — | % |  | 0.7 | %
Other | (0.4) | % |  | 6.3 | % |  | 0.2 | %
Effective income tax rate | 24.7 | % |  | 7.7 | % |  | 25.6 | %
Components of deferred tax assets and liabilities:
| December 31,
(In thousands) | 2022 |  | 2021
Deferred tax assets |  |  |
Product liability | $ | 72,950 |  |  | $ | 71,709 |
Capitalized research and development | 26,988 |  |  | 25,644 |
Net operating losses and tax credit carryforwards | 10,696 |  |  | 9,404 |
Accrued expenses and other reserves | 5,738 |  |  | 4,627 |
Share-based compensation | 4,562 |  |  | 3,619 |
Other | 5,068 |  |  | 4,785 |
Total deferred tax assets | 126,002 |  |  | 119,788 |
Valuation allowances | (10,017) |  |  | (8,812) |
Net deferred tax assets | 115,985 |  |  | 110,976 |
Deferred tax liabilities |  |  |
Goodwill and intangibles | (80,383) |  |  | (79,285) |
Property, plant and equipment | (18,735) |  |  | (17,088) |
Employee benefits | (18,899) |  |  | (8,985) |
Inventory | — |  |  | (1,264) |
Other | (4,359) |  |  | (2,434) |
Total deferred tax liabilities | (122,376) |  |  | (109,056) |
Net deferred taxes | $ | (6,391) |  |  | $ | 1,920 |
At December 31, 2022, we had net operating loss carryforwards of approximately $49.0 million. All net operating loss carryforwards without a valuation allowance may be carried forward for a period of at least six years. A reconciliation of the change in the tax liability for unrecognized tax benefits for the years ended December 31, 2022 and 2021 is as follows:
(In thousands) | 2022 |  | 2021
Beginning balance | $ | 4,937 |  |  | $ | 8,092 |
Adjustments for tax positions related to the current year | 100 |  |  | 182 |
Adjustments for tax positions related to prior years | 155 |  |  | 733 |
Settlements | — |  |  | (3,211) |
Statute expiration | — |  |  | (859) |
Ending balance | $ | 5,192 |  |  | $ | 4,937 |
The total amount of unrecognized tax benefits, if recognized, would reduce our future effective tax rate. We have recognized tax benefits associated with these liabilities in the amount of $2.7 million and $2.5 million at December 31, 2022 and 2021, respectively. We recognize interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. Our liability for accrued interest and penalties related to uncertain tax positions was $1.1 million and $0.8 million at December 31, 2022 and 2021, respectively. We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our consolidated financial statements. We file a U.S. federal income tax return along with various state and foreign income tax returns. Examinations of our U.S. federal returns have been completed through 2018. Various state and foreign income tax returns may be subject to tax audits for periods after 2015.

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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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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