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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 21. Income Taxes: Income (loss) before income taxes and noncontrolling interest within or outside the United States are shown below:
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Domestic |  | $ | 6,185 |  |  | $ | (10,454) |  |  | $ | 32,760 |
Foreign |  | 7,756 |  |  | 12,669 |  |  | 10,659 |
Total |  | $ | 13,941 |  |  | $ | 2,215 |  |  | $ | 43,419 |
The provision (benefit) for income taxes as shown in the accompanying consolidated statements of income consists of the following:
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |  |
Federal |  | $ | 2,469 |  |  | $ | — |  |  | $ | (3) |
State |  | 1,813 |  |  | 1,982 |  |  | 2,141 |
Foreign |  | 3,317 |  |  | 6,013 |  |  | 6,263 |
|  | 7,599 |  |  | 7,995 |  |  | 8,401 |
Deferred: |  |  |  |  |  |
Federal |  | (1,813) |  |  | (58,125) |  |  | 1,320 |
State |  | 2,551 |  |  | (2,596) |  |  | 2,244 |
Foreign |  | 3,810 |  |  | 661 |  |  | 334 |
|  | 4,548 |  |  | (60,060) |  |  | 3,898 |
(Benefit) provision for income taxes |  | $ | 12,147 |  |  | $ | (52,065) |  |  | $ | 12,299 |
A reconciliation of income tax expense (benefit) at the U.S. federal statutory income tax rate to actual income tax expense is as follows:
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Tax at statutory rate |  | $ | 2,928 |  |  | $ | 466 |  |  | $ | 9,118 |
State income taxes, net of federal income tax benefit |  | 3,942 |  |  | (401) |  |  | 6,725 |
Impact of Discrete Tax Items, GILTI Inclusion |  | 390 |  |  | (105) |  |  | 1,003 |
Changes in uncertain tax positions |  | 877 |  |  | 164 |  |  | (1,288) |
Change in valuation allowances |  | (119) |  |  | 135 |  |  | 1,415 |
Rate changes |  | 5,209 |  |  | 4,274 |  |  | 1,054 |
Foreign withholding taxes |  | — |  |  | — |  |  | (6,651) |
Foreign tax rate differential |  | (4) |  |  | 165 |  |  | 217 |
Foreign tax credits |  | (759) |  |  | (56,359) |  |  | — |
Research and development tax credits |  | (620) |  |  | (717) |  |  | (32) |
Other, net |  | 303 |  |  | 313 |  |  | 738 |
Provision (benefit) for income taxes |  | $ | 12,147 |  |  | $ | (52,065) |  |  | $ | 12,299 |
Deferred tax assets (liabilities) are comprised of the following:
|  | December 31,
|  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Net operating loss carryforwards |  | $ | 24,107 |  |  | $ | 24,467 |
Interest disallowance carryforward |  | 24 |  |  | 266 |
Pension |  | 227 |  |  | 9,149 |
Operating lease liability |  | 7,362 |  |  | 10,816 |
Other |  | 14,732 |  |  | 18,997 |
State credits |  | 13,110 |  |  | 12,733 |
Foreign withholding tax credits |  | 9,083 |  |  | 9,083 |
Foreign tax credit |  | — |  |  | 62,752 |
Valuation allowance |  | (39,857) |  |  | (34,189) |
|  | $ | 28,788 |  |  | $ | 114,074 |
Deferred tax liabilities: |  |  |  |
Depreciation |  | $ | (71,815) |  |  | $ | (92,922) |
Inventory |  | (2,899) |  |  | (4,946) |
Intangibles |  | (62,557) |  |  | (117,063) |
Operating lease right-of-use assets |  | (7,384) |  |  | (11,250) |
Other |  | (10,713) |  |  | (13,743) |
|  | $ | (155,368) |  |  | $ | (239,924) |
Net deferred tax liabilities |  | $ | (126,580) |  |  | $ | (125,850) |
Under the tax laws of various jurisdictions in which we operate, deductions or credits that cannot be fully utilized for tax purposes during the year may be carried forward, subject to statutory limitations, to reduce taxable income or taxes payable in a future year. As of December 31, 2021, the Company has indefinite carryforwards of $9,083 foreign withholding tax credits. The Company has recorded a full valuation allowance against the foreign withholding tax credits as it is more likely than not that the benefit from these foreign tax credits will never be realized. The Company has $13,110 of deferred tax assets related to state tax credits, which are subject to a 16-year carryforward period. A partial valuation allowance of $12,012 has been recorded due to the expected expiration of these credits before they are able to be utilized. The Company has $24,107 of deferred tax assets related to state net operating losses, which are subject to various carryforward periods of 5 to 20 years or an indefinite carryforward period. A partial valuation allowance of $18,762 has been recorded due to the expected expiration of these credits before they are able to be utilized. The change in net deferred tax liabilities for the years ended December 31, 2021 and 2020 was primarily related to the usage of U.S. federal credit carryforwards reducing those deferred tax assets, activity related to book amortization of intangible assets with no corresponding tax basis reducing those deferred tax liabilities, activity with respect to tax deductible goodwill, as well as the impact of the Performance Chemicals business being classified as held for sale for year ended December 31, 2020. The net change in the total valuation allowance was an increase of $5,668 in 2021. The valuation allowance at December 31, 2021 was related to state net operating loss carryforwards and tax credits that, in the judgment of management, are not more likely than not to be realized. In assessing the ability to realize deferred tax assets, management considered 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 considered the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies that are prudent in making this assessment. In order to fully realize deferred tax assets, the Company will need to generate future taxable income prior to the expiration of the net operating loss and credit carryforwards. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. The cumulative unremitted earnings of foreign subsidiaries outside the United States are considered permanently reinvested, for which no withholding taxes have been provided. Such earnings are expected to be reinvested indefinitely and, as a result, no deferred tax liability has been recognized with regard to such earnings. Determination of the deferred withholding tax liability on these unremitted earnings is not practicable. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits:
|  | Years ended December 31,
|  | 2021 |  | 2020
Balance at beginning of period |  | $ | 7,787 |  |  | $ | 8,080 |
Increases related to current year tax positions |  | — |  |  | 164 |
Decreases related to settlements with taxing authorities |  | — |  |  | (457) |
Balance at end of period |  | $ | 7,787 |  |  | $ | 7,787 |
The total unrecognized tax benefits of $7,787 and $7,787 as of December 31, 2021 and 2020, respectively. If these amounts are recognized in future periods, it would affect the effective tax rate on income from continuing operations for the years in which they are recognized. Interest and penalties released related to uncertain tax positions amounted to $0 and $37 for the years ended December 31, 2021 and 2020, respectively. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period for which the event occurs requiring the adjustment. The Company recorded no accrued interest and penalties as of December 31, 2021 and 2020, respectively, in other long-term liabilities on its consolidated balance sheets. The Company files numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. The following describes the open tax years, by significant tax jurisdiction, as of December 31, 2021:
Jurisdiction |  | Period
United States-Federal |  | 2010-Present
United States-State |  | 2010-Present
Given that the Company has utilized state net operating loss in the current and prior years, the statute for examination by the state taxing authorities will typically remain open for a period following the use of such net operating loss carryforwards, extending the period for examination beyond the years indicated above. As of December 31, 2021, the Company does not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. As of December 31, 2021, the Company no longer has a federal NOL or foreign tax credit carryforward. There are no foreign net operating losses as of December 31, 2021. Cash payments for income taxes, net of refunds, are as follows:
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Domestic |  | $ | 549 |  |  | $ | 1,894 |  |  | $ | 1,879 |
Foreign |  | 69 |  |  | 29 |  |  | (29) |
|  | $ | 618 |  |  | $ | 1,923 |  |  | $ | 1,850 |

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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=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 http://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 http://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 http://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 http://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 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 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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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