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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes
(In thousands) | 2023 |  | 2022 |  | 2021
Components of income before income taxes |  |  |  |  |
U.S. income (loss) | $ | 80,229 |  |  | $ | 170,426 |  |  | $ | (59,746) |
Non-U.S. income | 126,459 |  |  | 68,107 |  |  | 83,350 |
Income before income taxes | $ | 206,688 |  |  | $ | 238,533 |  |  | $ | 23,604 |
Provision for income taxes |  |  |  |  |
Current |  |  |  |  |
Federal | $ | 49,642 |  |  | $ | 26,022 |  |  | $ | 13,179 |
State | 9,510 |  |  | 7,708 |  |  | 5,000 |
Non-U.S. | 27,101 |  |  | 20,002 |  |  | 22,487 |
Total current provision | $ | 86,253 |  |  | $ | 53,732 |  |  | $ | 40,666 |
Deferred |  |  |  |  |
Federal | $ | 54,272 |  |  | $ | 7,350 |  |  | $ | (29,631) |
State | 12,914 |  |  | 862 |  |  | (7,204) |
Non-U.S. | (5,334) |  |  | (3,041) |  |  | (2,015) |
Total deferred provision (benefit) | 61,852 |  |  | 5,171 |  |  | (38,850) |
Provision for income taxes | $ | 148,105 |  |  | $ | 58,903 |  |  | $ | 1,816 |
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 increased 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:
| 2023 |  | 2022 |  | 2021
U.S. federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Divestiture (Note 20) | 46.6 | % |  | — | % |  | — | %
State income taxes-U.S. | 3.7 | % |  | 2.9 | % |  | (7.0) | %
Nondeductible compensation | 1.9 | % |  | 1.2 | % |  | 15.3 | %
Research and development credit | (0.8) | % |  | (0.4) | % |  | (5.3) | %
Taxes on non-U.S. income | (0.6) | % |  | 0.1 | % |  | (10.9) | %
Taxes on non-U.S. income - U.S., Canadian & European reorganization | (0.5) | % |  | — | % |  | — | %
Employee share-based payments | (0.4) | % |  | (0.8) | % |  | (18.3) | %
Valuation allowances | (0.2) | % |  | 0.8 | % |  | 7.0 | %
Foreign exchange on entity closures | — | % |  | 0.3 | % |  | (0.4) | %
Other | 0.9 | % |  | (0.4) | % |  | 6.3 | %
Effective income tax rate | 71.6 | % |  | 24.7 | % |  | 7.7 | %
Components of deferred tax assets and liabilities:
| December 31,
(In thousands) | 2023 |  | 2022
Deferred tax assets |  |  |
Capitalized research and development | $ | 28,822 |  |  | $ | 26,988 |
Net operating losses and tax credit carryforwards | 10,964 |  |  | 10,696 |
Share-based compensation | 5,528 |  |  | 4,562 |
Inventory | 7,281 |  |  | — |
Accrued expenses and other reserves | 4,566 |  |  | 5,738 |
Reserve for doubtful accounts | 1,562 |  |  | — |
Product liability | 655 |  |  | 72,950 |
Other | 7,218 |  |  | 5,068 |
Total deferred tax assets | 66,596 |  |  | 126,002 |
Valuation allowances | (9,671) |  |  | (10,017) |
Net deferred tax assets | 56,925 |  |  | 115,985 |
Deferred tax liabilities |  |  |
Goodwill and intangibles | (83,100) |  |  | (80,383) |
Employee benefits | (24,958) |  |  | (18,899) |
Property, plant and equipment | (15,541) |  |  | (18,735) |
Other | (2,680) |  |  | (4,359) |
Total deferred tax liabilities | (126,279) |  |  | (122,376) |
Net deferred taxes | $ | (69,354) |  |  | $ | (6,391) |
At December 31, 2023, we had net operating loss carryforwards of approximately $50.4 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, 2023 and 2022 is as follows:
(In thousands) | 2023 |  | 2022
Beginning balance | $ | 5,192 |  |  | $ | 4,937 |
Adjustments for tax positions related to the current year | — |  |  | 100 |
Adjustments for tax positions related to prior years | (1,116) |  |  | 155 |
Settlements | — |  |  | — |
Statute expiration | (992) |  |  | — |
Ending balance | $ | 3,084 |  |  | $ | 5,192 |
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 $0.6 million and $2.7 million at December 31, 2023 and 2022, 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 $0.2 million and $1.1 million at December 31, 2023 and 2022, 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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