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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Taxes [Abstract] |
Income Taxes | 17. Income Taxes The income tax provision (benefit) consists of the following (in thousands):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |  |
Domestic |  | $ | 26,528 |  |  | $ | 30,368 |  |  | $ | 14,632 |
Foreign |  |  | 5,851 |  |  |  | 4,064 |  |  |  | 3,019 |
Total current |  |  | 32,379 |  |  |  | 34,432 |  |  |  | 17,651 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | (1,161 | ) |  |  | (7,418 | ) |  |  | 4,677 |
Foreign |  |  | (174 | ) |  |  | (52 | ) |  |  | 417 |
Total deferred |  |  | (1,335 | ) |  |  | (7,470 | ) |  |  | 5,094 |
Total income tax provision |  | $ | 31,044 |  |  | $ | 26,962 |  |  | $ | 22,745 |
Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
U.S. Federal income tax rate of 21% |  | $ | 27,398 |  |  | $ | 22,550 |  |  | $ | 19,277 |
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | 4,579 |  |  |  | 3,781 |  |  |  | 3,328 |
Income tax (tax benefit) attributable to foreign income |  |  | (122 | ) |  |  | 330 |  |  |  | 191 |
Other non-deductible items, net |  |  | (1,277 | ) |  |  | (563 | ) |  |  | (409 | )
Change in valuation allowance |  |  | 466 |  |  |  | 864 |  |  |  | 358 |
Provision for income taxes |  | $ | 31,044 |  |  | $ | 26,962 |  |  | $ | 22,745 |
The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands):
|  | December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |
Inventories |  | $ | 12,181 |  |  | $ | 12,773 |
Allowance for customer returns |  |  | 14,185 |  |  |  | 13,804 |
Postretirement benefits |  |  | 33 |  |  |  | 42 |
Allowance for expected credit losses |  |  | 1,450 |  |  |  | 1,412 |
Accrued salaries and benefits |  |  | 15,585 |  |  |  | 12,984 |
Tax credit and NOL carryforwards |  |  | 5,702 |  |  |  | 1,451 |
Accrued asbestos liabilities |  |  | 15,463 |  |  |  | 15,372 |
Other |  |  | 190 |  |  |  | 170 |
|  |  | 64,789 |  |  |  | 58,008 |
Valuation allowance |  |  | (2,087 | ) |  |  | (1,621 | )
Total deferred tax assets |  |  | 62,702 |  |  |  | 56,387 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangible assets acquired, net of amortization |  |  | 13,450 |  |  |  | — |
Depreciation |  |  | 7,589 |  |  |  | 7,710 |
Other |  |  | 5,537 |  |  |  | 3,907 |
Total deferred tax liabilities |  |  | 26,576 |  |  |  | 11,617 |
Net deferred tax assets |  | $ | 36,126 |  |  | $ | 44,770 |
In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient taxable income in those periods in which temporary differences become deductible and/or net operating loss carryforwards can be utilized. We consider the level of historical taxable income, scheduled reversal of temporary differences, carryback and carryforward periods, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. We also consider cumulative losses in recent years as well as the impact of one-time events in assessing our pre-tax earnings. Assumptions regarding future taxable income require significant judgment. Our assumptions are consistent with estimates and plans used to manage our business. The valuation allowance of $2.1 million as of December 31, 2021 is intended to provide for uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. Based on these considerations, we believe it is more likely than not that we would realize the benefit of the net deferred tax asset of $36.1 million as of December 31, 2021, which is net of the remaining valuation allowance. At December 31, 2021, we have foreign tax credit carryforwards of approximately $1.9 million that will expire in varying amounts by 2030. As related to the taxation of our foreign subsidiaries, we aggregate our foreign earnings and profits, and utilize allowable deductions and available foreign tax credits in computing our U.S. tax. Notwithstanding the U.S. taxation of these amounts, we intend to continue to invest most or all of these earnings indefinitely outside of the U.S., and do not expect to incur any significant additional taxes related to such amounts. In accordance with generally accepted accounting practices, we recognize in our financial statements only those tax positions that meet the more-likely-than-not recognition threshold. We establish tax reserves for uncertain tax positions that do not meet this threshold. During the years ended December 31, 2021, 2020 and 2019, we did not establish a liability for uncertain tax positions. We are subject to taxation in the U.S. and various state, local and foreign jurisdictions. As of December 31, 2021, the Company is no longer subject to U.S. Federal tax examinations for years before 2018. We remain subject to examination by state and local tax authorities for tax years 2017 through 2020. Foreign jurisdictions have statutes of limitations generally ranging from 2 to 6 years. Years still open to examination by foreign tax authorities in major jurisdictions include Canada (2017 onward), Hong Kong (2016 onward), China (2017 onward) Mexico (2017 onward), Poland (2016 onward), and Hungary (2015 onward). We do not presently anticipate that our unrecognized tax benefits will significantly increase or decrease over the next 12 months; however, actual developments in this area could differ from those currently expected.

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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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