XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Tax Matters | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Tax Matters | 14. Income Tax Matters The following table presents Income (loss) before income taxes by geographic area (in millions of dollars):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Domestic |  | $ | 48.0 |  |  | $ | (44.6 | ) |  | $ | (30.2 | )
Foreign |  |  | 8.3 |  |  |  | 6.7 |  |  |  | 6.2 |
Income (loss) before income taxes |  | $ | 56.3 |  |  | $ | (37.9 | ) |  | $ | (24.0 | )
Tax (Provision) Benefit. Income taxes are classified as either domestic or foreign based on whether payment is made or due to the United States or a foreign country. Certain income classified as foreign is also subject to domestic income taxes. The following table presents the components of Income tax (provision) benefit (in millions of dollars):
|  | Federal |  |  | Foreign |  |  | State |  |  | Total |
Year Ended December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  |  | $ | (2.2 | ) |  | $ | 0.6 |  |  | $ | (1.6 | )
Deferred |  |  | (11.6 | ) |  |  | 0.1 |  |  |  | 1.0 |  |  |  | (10.5 | )
Benefit applied to decrease AOCI |  |  | 2.5 |  |  |  | 0.1 |  |  |  | 0.4 |  |  |  | 3.0 |
Income tax (provision) benefit |  | $ | (9.1 | ) |  | $ | (2.0 | ) |  | $ | 2.0 |  |  | $ | (9.1 | )
Year Ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  |  | $ | (1.1 | ) |  | $ | (2.5 | ) |  | $ | (3.6 | )
Deferred |  |  | 8.9 |  |  |  | (0.8 | ) |  |  | 1.6 |  |  |  | 9.7 |
Benefit applied to decrease AOCI |  |  | 1.7 |  |  |  | 0.2 |  |  |  | 0.3 |  |  |  | 2.2 |
Income tax benefit (provision) |  | $ | 10.6 |  |  | $ | (1.7 | ) |  | $ | (0.6 | ) |  | $ | 8.3 |
Year Ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  |  | $ | (2.4 | ) |  | $ | (3.5 | ) |  | $ | (5.9 | )
Deferred |  |  | 2.1 |  |  |  | 0.5 |  |  |  | 4.2 |  |  |  | 6.8 |
Benefit applied to decrease AOCI |  |  | 3.7 |  |  |  | 0.3 |  |  |  | 0.6 |  |  |  | 4.6 |
Income tax benefit (provision) |  | $ | 5.8 |  |  | $ | (1.6 | ) |  | $ | 1.3 |  |  | $ | 5.5 |
The following table presents a reconciliation between the (provision) benefit for income taxes and the amount computed by applying the federal statutory income tax rate to Income (loss) before income taxes (in millions of dollars):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Amount of federal income tax (provision) benefit based on the statutory rate |  | $ | (11.8 | ) |  | $ | 8.0 |  |  | $ | 5.0 |
Decrease in federal valuation allowances |  |  | — |  |  |  | 1.1 |  |  |  | 0.2 |
Non-deductible compensation expense |  |  | (1.6 | ) |  |  | (0.9 | ) |  |  | (0.5 | )
Non-deductible benefit (expense) |  |  | 0.2 |  |  |  | (1.0 | ) |  |  | (0.2 | )
State income tax benefit (provision), net of federal benefit 1 |  |  | 1.5 |  |  |  | (0.5 | ) |  |  | 1.0 |
Research and development credit |  |  | 3.2 |  |  |  | 2.2 |  |  |  | 0.6 |
Foreign income tax expense |  |  | (0.3 | ) |  |  | (0.3 | ) |  |  | (0.3 | )
Foreign undistributed earnings |  |  | (0.3 | ) |  |  | (0.3 | ) |  |  | (0.3 | )
Income tax (provision) benefit |  | $ | (9.1 | ) |  | $ | 8.3 |  |  | $ | 5.5 |
1. The state income tax expense was $1.4 million in 2023, reflecting a decrease of $1.9 million due to state net operating loss (“NOL”) carryforward expirations and tax rate true-ups in various states and a $1.0 million decrease in the valuation allowance relating to certain state net operating losses. The state income tax benefit was $1.1 million in 2022, reflecting an increase of $1.5 million due to state NOL carryforward expirations and tax rate true-ups in various states and a $0.1 million increase in the valuation allowance relating to certain state net operating losses. The state income tax benefit was $0.7 million in 2021, reflecting an increase of $1.3 million due to state NOL carryforward expirations and tax rate true-ups in various states, offset by a $1.6 million decrease in the valuation allowance relating to certain state net operating losses. Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The following table presents the components of our net deferred income tax assets and liabilities (in millions of dollars):
|  | As of December 31, |
|  | 2023 |  |  | 2022 |
Deferred income tax assets: |  |  |  |  |  |
Loss and credit carryforwards |  | $ | 39.6 |  |  | $ | 47.7 |
Defined benefit plans |  |  | 3.6 |  |  |  | 2.9 |
Other assets |  |  | 36.8 |  |  |  | 36.3 |
Lease assets |  |  | 8.7 |  |  |  | 10.6 |
Inventories |  |  | 29.5 |  |  |  | 46.9 |
Excess interest carryforward |  |  | 14.0 |  |  |  | 12.2 |
Research & development capitalization |  |  | 16.9 |  |  |  | 8.7 |
Valuation allowances |  |  | (2.7 | ) |  |  | (3.7 | )
Total deferred income tax assets |  |  | 146.4 |  |  |  | 161.6 |
Deferred income tax liabilities: |  |  |  |  |  |
Property, plant and equipment |  |  | (142.6 | ) |  |  | (147.0 | )
Lease liabilities |  |  | (8.7 | ) |  |  | (9.3 | )
Undistributed foreign earnings |  |  | (3.0 | ) |  |  | (2.7 | )
Total deferred income tax liabilities |  |  | (154.3 | ) |  |  | (159.0 | )
Net deferred income tax (liabilities) assets |  | $ | (7.9 | ) |  | $ | 2.6 |
Tax Attributes. At December 31, 2023, we had $101.1 million of NOL carryforwards available to reduce future cash payments for federal income taxes in the United States. H.R.1, commonly referred to as the Tax Cut and Jobs Act, allows NOLs generated prior to December 31, 2017 (including our NOL carryforwards) to be fully deducted against 100% of taxable income until fully utilized or expired. NOL carryforwards generated after December 31, 2017 do not expire and can be carried forward indefinitely. For losses arising in taxable years beginning after December 31, 2017, the net operating loss deduction for taxable years beginning after December 31, 2020, is limited to 80% of the excess (if any) of taxable income. Our State NOL carryforwards expire periodically through 2041. In addition, we had $17.4 million of federal research and development (“R&D”) credit carryforwards to offset regular federal income tax requirements. Our R&D credit carryforwards expire periodically through 2043. We also had $1.5 million of state credit carryforwards that will expire periodically through 2047. In assessing the realizability of deferred tax assets, management considers whether it is “more likely than not” that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. Due to uncertainties surrounding the realization of some of our deferred tax assets, primarily including state NOL carryforwards sustained during the prior years and expiring tax benefits, we have a valuation allowance against certain deferred tax assets. When recognized, the tax benefits relating to any reversal of this valuation allowance will be recorded as a reduction of income tax expense. There was a decrease in the valuation allowance of $1.0 million in 2023, a decrease in the valuation allowance of $0.9 million in 2022 and a decrease in the valuation allowance of $1.8 million in 2021. The decrease in the valuation allowance for 2023 was primarily due to the expiration of state NOL carryforwards and the related reversal of their valuation allowances. The decrease in the valuation allowance for 2022 was primarily due to the liquidation of an inactive passive insurance company, and its related separate return limitation year net operating losses. The decrease in the valuation allowance for 2021 was primarily due to the expiration of state NOL carryforwards and the related reversal of their valuation allowances. Other. We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. Our tax returns for certain past years are still subject to examination by taxing authorities, and the use of NOL carryforwards in future periods could trigger a review of attributes and other tax matters in years that are not otherwise subject to examination. On October 8, 2021, the Organization for Economic Co-operation and Development ("OECD") announced the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting which agreed to a two-pillar solution to address tax challenges arising from digitalization of the economy. On December 20, 2021, the OECD released Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD continues to release additional guidance on the two-pillar framework with widespread implementation anticipated by 2024. Although we are continuing to evaluate the potential impact on future periods of the Pillar Two Framework, pending legislative adoption by individual countries, we do not anticipate any material financial impact. The legislation is anticipated to be effective for our fiscal year beginning January 1, 2024. We have gross unrecognized benefits relating to uncertain tax positions. The following table presents a reconciliation of changes in the gross unrecognized tax benefits (in millions of dollars):
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Gross unrecognized tax benefits at beginning of period |  | $ | 5.0 |  |  | $ | 4.1 |  |  | $ | 3.8 |
Gross increases for tax positions of current year |  |  | 1.3 |  |  |  | 0.9 |  |  |  | 0.3 |
Gross increases for tax positions of prior years |  |  | 0.2 |  |  |  | 0.1 |  |  |  | 0.4 |
Gross decreases for tax positions of prior years |  |  | — |  |  |  | (0.1 | ) |  |  | (0.3 | )
Settlements |  |  | — |  |  |  | — |  |  |  | (0.1 | )
Gross unrecognized tax benefits at end of period |  | $ | 6.5 |  |  | $ | 5.0 |  |  | $ | 4.1 |
If and when the $6.5 million of gross unrecognized tax benefits at December 31, 2023 are recognized, $6.5 million will be reflected in our income tax provision and thus affect the effective tax rate in future periods. In addition, we recognize interest and penalties related to unrecognized tax benefits in the income tax provision. We had $0.2 million and $0.1 million accrued for interest and penalties at December 31, 2023 and December 31, 2022, respectively, and we recognized interest and penalties of $0.2 million in our tax provision in 2021. Of the amounts accrued, none were considered current and, as such, were included in Long-term liabilities on our Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022. We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration