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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Consolidated income (loss) from continuing operations before income taxes by location | The “Income before income tax expense” line item in the consolidated statements of operations consisted of:
(Dollars in thousands) | 2020 |  | 2019 |  | 2018
Domestic | $ | (4,371) |  |  | $ | (18,711) |  |  | $ | 14,381 |
International | 72,905 |  |  | 73,837 |  |  | 96,208 |
Total | $ | 68,534 |  |  | $ | 55,126 |  |  | $ | 110,589 |
Income tax expense (benefit) by location | The “Income tax expense” line item in the consolidated statements of operations consisted of:
(Dollars in thousands) | Current |  | Deferred |  | Total
2020 |  |  |  |  |
Domestic | $ | 5,340 |  |  | $ | (11,012) |  |  | $ | (5,672) |
International | 26,610 |  |  | (2,394) |  |  | 24,216 |
Total | $ | 31,950 |  |  | $ | (13,406) |  |  | $ | 18,544 |
2019 |  |  |  |  |
Domestic | $ | 3,372 |  |  | $ | (16,827) |  |  | $ | (13,455) |
International | 21,984 |  |  | (722) |  |  | 21,262 |
Total | $ | 25,356 |  |  | $ | (17,549) |  |  | $ | 7,807 |
2018 |  |  |  |  |
Domestic | $ | (341) |  |  | $ | (3,007) |  |  | $ | (3,348) |
International | 26,604 |  |  | (318) |  |  | 26,286 |
Total | $ | 26,263 |  |  | $ | (3,325) |  |  | $ | 22,938 |
Deferred tax assets and liabilities | Deferred tax assets and liabilities as of December 31, 2020 and 2019, were comprised of the following:
(Dollars in thousands) | 2020 |  | 2019
Deferred tax assets |  |  |
Accrued employee benefits and compensation | $ | 6,199 |  |  | $ | 5,730 |
Tax loss and credit carryforwards | 17,644 |  |  | 17,761 |
Reserves and accruals | 6,581 |  |  | 5,996 |
Operating leases | 665 |  |  | 904 |
Capitalized research and development | 14,167 |  |  | 11,343 |
Other | 1,824 |  |  | 2,210 |
Total deferred tax assets | 47,080 |  |  | 43,944 |
Less deferred tax asset valuation allowance | (9,250) |  |  | (14,625) |
Total deferred tax assets, net of valuation allowance | 37,830 |  |  | 29,319 |
Deferred tax liabilities |  |  |
Depreciation and amortization | 10,282 |  |  | 15,368 |
Postretirement benefit obligations | 2,001 |  |  | 1,719 |
Unremitted earnings | 2,426 |  |  | 1,624 |
Operating leases | 714 |  |  | 908 |
Other | 2,115 |  |  | 1,803 |
Total deferred tax liabilities | 17,538 |  |  | 21,422 |
Net deferred tax asset (liability) | $ | 20,292 |  |  | $ | 7,897 |
Effective income tax rate reconciliation | Income tax expense differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes. The reasons for this difference were as follows:
(Dollars in thousands) | 2020 |  | 2019 |  | 2018
Tax expense at Federal statutory income tax rate | $ | 14,392 |  |  | $ | 11,576 |  |  | $ | 23,224 |
Impact of foreign operations | 1,193 |  |  | 107 |  |  | 826 |
Foreign source income, net of tax credits | 1,050 |  |  | (2,248) |  |  | (197) |
State tax, net of federal | (313) |  |  | (690) |  |  | 121 |
Unrecognized tax benefits | 5,800 |  |  | 543 |  |  | (869) |
U.S. Tax Reform | — |  |  | — |  |  | 209 |
Equity compensation excess tax deductions | (791) |  |  | (2,902) |  |  | (2,238) |
General business credits | (931) |  |  | (656) |  |  | (2,172) |
Distribution related foreign taxes | 2,332 |  |  | 1,240 |  |  | 1,916 |
Executive compensation limitation | 900 |  |  | 589 |  |  | 801 |
Valuation allowance change (excluding U.S. Tax Reform) | (5,375) |  |  | (2,527) |  |  | 602 |
Disproportionate tax effect of pension settlement charges | — |  |  | 2,510 |  |  | — |
Other | 287 |  |  | 265 |  |  | 715 |
Income tax expense (benefit) | $ | 18,544 |  |  | $ | 7,807 |  |  | $ | 22,938 |
Reconciliation of unrecognized tax benefits | Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2020 and December 31, 2019, were as follows:
(Dollars in thousands) | 2020 |  | 2019
Beginning balance as of January 1 | $ | 10,217 |  |  | $ | 9,801 |
Gross increases - current period tax positions | 5,417 |  |  | 3,139 |
Gross increases - tax positions in prior periods | 46 |  |  | — |
Gross decreases - tax positions in prior periods | — |  |  | — |
Foreign currency exchange | 8 |  |  | — |
Lapse of statute of limitations | — |  |  | (2,723) |
Ending balance as of December 31 | $ | 15,688 |  |  | $ | 10,217 |

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