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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision (benefit) for income taxes was as follows:
| Year Ended December 31,
(In thousands) | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
U.S. Federal | $ | 773 |  |  | $ | 1,591 |  |  | $ | 1,892 |
State | 525 |  |  | 365 |  |  | 706 |
Foreign | 7,204 |  |  | 5,011 |  |  | 11,440 |
Total current | 8,502 |  |  | 6,967 |  |  | 14,038 |
Deferred: |  |  |  |  |
U.S. Federal | 547 |  |  | (16,309) |  |  | (2,926) |
State | (545) |  |  | 598 |  |  | 1,181 |
Foreign | (1,211) |  |  | (3,139) |  |  | (2,505) |
Total deferred | (1,209) |  |  | (18,850) |  |  | (4,250) |
Total provision (benefit) for income taxes | $ | 7,293 |  |  | $ | (11,883) |  |  | $ | 9,788 |
Income (loss) before income taxes was as follows:
| Year Ended December 31,
(In thousands) | 2021 |  | 2020 |  | 2019
U.S. | $ | (36,250) |  |  | $ | (92,838) |  |  | $ | (15,270) |
Foreign | 18,017 |  |  | 259 |  |  | 12,112 |
Loss before income taxes | $ | (18,233) |  |  | $ | (92,579) |  |  | $ | (3,158) |
The effective income tax rate is reconciled to the statutory federal income tax rate as follows:
| Year Ended December 31,
(In thousands) | 2021 |  | 2020 |  | 2019
Income tax expense (benefit) at federal statutory rate | $ | (3,829) |  |  | $ | (19,442) |  |  | $ | (663) |
Recognition of Brazil cumulative foreign currency translation losses | — |  |  | 2,456 |  |  | — |
Nondeductible goodwill impairment | — |  |  | — |  |  | 2,401 |
Nondeductible executive compensation | 999 |  |  | 170 |  |  | 756 |
Other nondeductible expenses | 557 |  |  | 616 |  |  | 1,506 |
Stock-based compensation | 880 |  |  | 1,602 |  |  | (248) |
Different rates on earnings of foreign operations | (115) |  |  | 274 |  |  | 463 |
Dividend taxes on unremitted earnings | 980 |  |  | 322 |  |  | 1,609 |
U.S. tax on foreign earnings | — |  |  | — |  |  | 1,215 |
Change in valuation allowance | 10,416 |  |  | 2,226 |  |  | 1,272 |
State tax expense (benefit), net | (1,302) |  |  | 196 |  |  | 430 |
Other items, net | (1,293) |  |  | (303) |  |  | 1,047 |
Total provision (benefit) for income taxes | $ | 7,293 |  |  | $ | (11,883) |  |  | $ | 9,788 |
The provision for income taxes was $7.3 million for 2021, despite reporting a pretax loss for the year, primarily reflecting the impact of the geographic composition of our pretax loss. The tax expense primarily relates to earnings from our international operations since we are currently unable to recognize the tax benefit from our U.S. losses as they may not be realized. The benefit for income taxes was $11.9 million for 2020 reflecting an effective tax benefit rate of 13%. This result primarily reflects the impact of the $11.7 million non-cash recognition of cumulative foreign currency translation losses related to the substantial liquidation of our subsidiary in Brazil and other nondeductible expenses, as well as the impact of the geographic composition of our pretax loss, where the tax benefit from losses in the U.S was partially offset by the tax expense related to earnings from our international operations. The provision for income taxes was $9.8 million for 2019 despite reporting a small pretax loss for the year. This result reflects the impact of the $11.4 million nondeductible goodwill impairment and other nondeductible expenses, as well as the impact of the geographic composition of our pretax loss, where tax expense related to earnings from our international operations is only partially offset by the tax benefit from losses in the U.S. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in March 2020 in the United States. The CARES Act contains several tax provisions, including additional carryback opportunities for net operating losses, temporary increases in the interest deductibility threshold, and the acceleration of refunds for any remaining alternative minimum tax (“AMT”) carryforwards. There was no material impact from the CARES Act in our provision for income taxes for 2020. In addition, we filed an amendment to our 2018 U.S. federal income tax return in the second quarter of 2020 and received a refund of $0.7 million for AMT carryforwards in July 2020. The CARES Act also permits most companies to defer paying their portion of certain applicable payroll taxes from the date the CARES Act was signed into law through December 31, 2020. The deferred amount is due in two equal installments on December 31, 2021 and December 31, 2022. We paid the first installment in December 2021, and the remaining deferred amount of applicable payroll taxes was $1.6 million at December 31, 2021. Temporary differences and carryforwards which give rise to deferred tax assets and liabilities consisted of the following at December 31:
(In thousands) | 2021 |  | 2020
Deferred tax assets: |  |  |
Net operating losses | $ | 38,746 |  |  | $ | 25,990 |
Foreign tax credits | 8,330 |  |  | 6,690 |
Accruals not currently deductible | 4,393 |  |  | 5,121 |
Unrealized foreign exchange losses, net | 4,590 |  |  | 3,750 |
Stock-based compensation | 1,856 |  |  | 2,238 |
Capitalized inventory costs | 1,706 |  |  | 3,111 |
Other | 10,534 |  |  | 9,456 |
Total deferred tax assets | 70,155 |  |  | 56,356 |
Valuation allowance | (38,406) |  |  | (26,250) |
Total deferred tax assets, net of allowances | 31,749 |  |  | 30,106 |
Deferred tax liabilities: |  |  |
Accelerated depreciation and amortization | (31,816) |  |  | (29,587) |
Tax on unremitted earnings | (8,214) |  |  | (9,765) |
Original issue discount on Convertible Notes | — |  |  | (804) |
Other | (1,222) |  |  | (1,612) |
Total deferred tax liabilities | (41,252) |  |  | (41,768) |
Total net deferred tax liabilities | $ | (9,503) |  |  | $ | (11,662) |
Noncurrent deferred tax assets | $ | 2,316 |  |  | $ | 1,706 |
Noncurrent deferred tax liabilities | (11,819) |  |  | (13,368) |
Net deferred tax liabilities | $ | (9,503) |  |  | $ | (11,662) |
We have U.S. federal income tax net operating loss carryforwards (“NOLs”) of approximately $100.9 million available to reduce future U.S. taxable income, which do not expire. We also have state NOLs of approximately $208.0 million available to reduce future state taxable income, including approximately $147.8 million which do not expire and approximately $60.2 million which expire in varying amounts beginning in 2022 through 2041. Foreign NOLs of approximately $21.5 million are available to reduce future taxable income, some of which expire beginning in 2022. The realization of our net deferred tax assets is dependent on our ability to generate taxable income in future periods. At December 31, 2021 and 2020, we have recorded a valuation allowance in the amount of $38.4 million and $26.3 million, respectively, primarily related to certain U.S. federal, state, and foreign NOL carryforwards, including Australia, as well as for certain foreign tax credits recognized related to the accounting for the impact of the 2017 U.S. Tax Cuts and Jobs Act (“Tax Act”), which may not be realized. We file income tax returns in the U.S. and several non-U.S. jurisdictions and are subject to examination in the various jurisdictions in which we file. We are no longer subject to income tax examinations for U.S. federal and substantially all state jurisdictions for years prior to 2014 and for substantially all foreign jurisdictions for years prior to 2008. We are under examination by various tax authorities in countries where we operate, and certain foreign jurisdictions have challenged the amounts of taxes due for certain tax periods. These audits are in various stages of completion. We fully cooperate with all audits, but defend existing positions vigorously. We evaluate the potential exposure associated with various filing positions and record a liability for uncertain tax positions as circumstances warrant. Although we believe all tax positions are reasonable and properly reported in accordance with applicable tax laws and regulations in effect during the periods involved, the final determination of tax audits and any related litigation could be materially different than that which is reflected in historical income tax provisions and accruals. A reconciliation of the beginning and ending provision for uncertain tax positions is as follows:
(In thousands) | 2021 |  | 2020 |  | 2019
Balance at January 1 | $ | 213 |  |  | $ | 291 |  |  | $ | 223 |
Additions (reductions) for tax positions of prior years | (6) |  |  | (6) |  |  | 68 |
Additions (reductions) for tax positions of current year | 306 |  |  | — |  |  | — |
Reductions for settlements with tax authorities | — |  |  | — |  |  | — |
Reductions for lapse of statute of limitations | (28) |  |  | (72) |  |  | — |
Balance at December 31 | $ | 485 |  |  | $ | 213 |  |  | $ | 291 |
Approximately $0.5 million of unrecognized tax benefits at December 31, 2021, if recognized, would favorably impact the effective tax rate. We recognize accrued interest and penalties related to uncertain tax positions in operating expenses. The amount of interest and penalties was immaterial for all periods presented.

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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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