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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax (benefit) provision for the years ended December 31, consists of the following (in thousands):
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 4,877 |  |  | $ | 82,484 |  |  | $ | 136,202 |
State | 2,614 |  |  | 6,421 |  |  | 23,134 |
Foreign | 19,560 |  |  | 23,328 |  |  | 29,823 |
| 27,051 |  |  | 112,233 |  |  | 189,159 |
Deferred: |  |  |  |  |
Federal | (30,779) |  |  | 18,760 |  |  | (23,181) |
State | (11,579) |  |  | 402 |  |  | (6,787) |
Foreign | (1,721) |  |  | 2,385 |  |  | (4,013) |
| (44,079) |  |  | 21,547 |  |  | (33,981) |
| $ | (17,028) |  |  | $ | 133,780 |  |  | $ | 155,178 |
The components of (Loss) income before income taxes for the years ended December 31, were as follows (in thousands):
| 2020 |  | 2019 |  | 2018
Domestic | $ | (81,522) |  |  | $ | 465,798 |  |  | $ | 593,099 |
Foreign | 65,792 |  |  | 91,617 |  |  | 93,530 |
| $ | (15,730) |  |  | $ | 557,415 |  |  | $ | 686,629 |
Income tax (benefit) provision differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate for the years ended December 31, due to the following items (in thousands):
| 2020 |  | 2019 |  | 2018
(Benefit) provision at statutory rate | $ | (3,303) |  |  | $ | 117,057 |  |  | $ | 144,192 |
State taxes, net of federal benefit | 822 |  |  | 14,165 |  |  | 18,086 |
Foreign rate differential | 60 |  |  | 1,665 |  |  | 2,712 |
Foreign derived intangible income | — |  |  | (3,108) |  |  | (8,400) |
Research and development credit | (8,442) |  |  | (8,200) |  |  | (7,400) |
Unrecognized tax benefits including interest and penalties | (8,567) |  |  | 289 |  |  | (4,121) |
Valuation allowance adjustments | 9,675 |  |  | 8,070 |  |  | 908 |
State credits | (13,106) |  |  | (4,704) |  |  | — |
Deferred tax balance remeasurement for rate change | — |  |  | — |  |  | (8,098) |
Territorial tax | — |  |  | — |  |  | 9,556 |
Global intangible low-taxed income | 1,480 |  |  | 1,113 |  |  | 2,437 |
Adjustments for previously accrued taxes | (4,951) |  |  | (1,755) |  |  | (7,196) |
Rate differential on intercompany transfers | — |  |  | — |  |  | 6,013 |
Executive compensation limitation | 2,543 |  |  | 2,620 |  |  | 3,171 |
Other foreign inclusions | 4,415 |  |  | 4,202 |  |  | 1,787 |
Other | 2,346 |  |  | 2,366 |  |  | 1,531 |
Income tax (benefit) provision | $ | (17,028) |  |  | $ | 133,780 |  |  | $ | 155,178 |
The 2017 Tax Cuts and Jobs Act subjects U.S. shareholders to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries for which a company can elect to either recognize deferred taxes or to provide tax expense in the year incurred. The Company has elected to account for GILTI in the year the tax is incurred. The principal components of the Company’s deferred income tax assets and liabilities as of December 31, include the following (in thousands):
| 2020 |  | 2019
Deferred income tax assets: |  |  |
Accruals not yet tax deductible | $ | 142,100 |  |  | $ | 95,746 |
Pension and postretirement healthcare plan obligations | 6,499 |  |  | 17,685 |
Stock compensation | 9,619 |  |  | 11,867 |
Net operating loss and credit carryforwards | 55,857 |  |  | 45,279 |
Valuation allowance | (38,072) |  |  | (29,024) |
Other | 78,051 |  |  | 64,833 |
| 254,054 |  |  | 206,386 |
Deferred income tax liabilities: |  |  |
Depreciation, tax in excess of book | (74,579) |  |  | (83,477) |
Other | (29,544) |  |  | (29,840) |
| (104,123) |  |  | (113,317) |
| $ | 149,931 |  |  | $ | 93,069 |
The Company reviews its deferred income tax asset valuation allowances on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred income tax asset is considered, along with any positive or negative evidence including tax law changes. Since future financial results and tax law may differ from previous estimates, periodic adjustments to the Company’s valuation allowances may be necessary. The Company's gross state operating loss carryforwards were as follows at December 31, (in thousands):
Year of Expiration |  | 2020 |  |
2031 |  | $ | 252,142 |  |  |
2033 |  | 49 |  |  |
2034 |  | 2,455 |  |  |
2035 |  | 7,800 |  |  |
2038 |  | 3,992 |  |  |
2039 |  | 11,710 |  |  |
2040 |  | 29,836 |  |  |
Indefinite |  | 9,449 |  |  |
|  | $ | 317,433 |  |  |
The Company also had Wisconsin research and development credit carryforwards of $33.8 million at December 31, 2020, expiring in 2024-2035. At December 31, 2020, the Company had a deferred tax asset of $45.9 million related to its state operating loss and Wisconsin research and development credit carryforwards and a deferred tax asset of $10.0 million related to foreign net operating losses. The Company's valuation allowance was $38.1 million at December 31, 2020 and included $17.7 million related to state operating loss and Wisconsin research and development credit carryforwards, $6.5 million related to foreign net operating losses and $13.9 million related to other deferred tax assets. The increase in the valuation allowance from prior year included $8.0 million related to state operating loss and Wisconsin research and development credit carryforwards and $1.0 million related to foreign net operating losses. The Company recognizes interest and penalties related to unrecognized tax benefits in Income tax (benefit) provision. Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands):
| 2020 |  | 2019
Unrecognized tax benefits, beginning of period | $ | 60,112 |  |  | $ | 61,411 |
Increase in unrecognized tax benefits for tax positions taken in a prior period | 1,649 |  |  | 1,067 |
Decrease in unrecognized tax benefits for tax positions taken in a prior period | (12,560) |  |  | (5,608) |
Increase in unrecognized tax benefits for tax positions taken in the current period | 3,092 |  |  | 4,576 |
Statute lapses | — |  |  | (325) |
Settlements with taxing authorities | (1,696) |  |  | (1,009) |
Unrecognized tax benefits, end of period | $ | 50,597 |  |  | $ | 60,112 |
The amount of unrecognized tax benefits as of December 31, 2020 and 2019 that, if recognized, would affect the effective tax rate was $43.8 million and $53.1 million, respectively. The total gross amount of benefit related to interest and penalties associated with unrecognized tax benefits recognized during 2020, 2019 and 2018 in the Consolidated statements of operations was $2.1 million, $0.1 million and $3.2 million, respectively. The total gross amount of interest and penalties associated with unrecognized tax benefits recognized at December 31, 2020 and 2019 in the Consolidated balance sheets was $25.5 million and $27.6 million, respectively. The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits related to continuing operations during the fiscal year ending December 31, 2021. However, the Company is under regular audit by tax authorities. The Company believes that it has appropriate support for the positions taken on its tax returns and that its annual tax provision includes amounts sufficient to pay any assessments. Nonetheless, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. The Company or one of its subsidiaries files income tax returns in the U.S. federal and Wisconsin state jurisdictions and various other state and foreign jurisdictions. The Company is no longer subject to income tax examinations for Wisconsin state income taxes before 2016 or for U.S. federal income taxes before 2017.

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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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