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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income (Loss) Before Income Taxes The consolidated income (loss) before income taxes for 2021, 2020, and 2019 consists of the following (in thousands):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Domestic | $ | 5,426 |  |  | $ | (110,049) |  |  | $ | 116,886 |
Foreign | (4,136) |  |  | 835 |  |  | 845 |
Total income (loss) before income taxes | $ | 1,290 |  |  | $ | (109,214) |  |  | $ | 117,731 |
Income Tax Expense (Benefit) On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted and signed into law in response to the COVID-19 global pandemic. Certain provisions of the CARES Act had a significant impact on the effective tax rate, income tax payable, and deferred income tax positions of the Company for 2021. The CARES Act permits net operating losses (“NOLs”) incurred in tax years 2020, 2019, and 2018 to offset 100% of taxable income and be carried-back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company evaluated the impact of the CARES Act during the year ended December 31, 2020 and recorded an income tax receivable of $13.2 million for the benefit of carrying back the NOL for the year ended December 31, 2020. As the Company is carrying the losses back to years beginning before January 1, 2018, the receivables were recorded at the previous 35% federal tax rate rather than the current statutory rate of 21%. The consolidated income tax expense (benefit) for 2021, 2020, and 2019 consists of the following components (in thousands):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Current |  |  |  |  |
Federal | $ | 8,449 |  |  | $ | (15,190) |  |  | $ | 18,167 |
State | (1,098) |  |  | (2,072) |  |  | 6,233 |
Foreign | 922 |  |  | 444 |  |  | 336 |
| 8,273 |  |  | (16,818) |  |  | 24,736 |
Deferred |  |  |  |  |
Federal | (9,423) |  |  | 7,918 |  |  | 2,760 |
State | 1,310 |  |  | (2,959) |  |  | 620 |
Foreign | (34) |  |  | 57 |  |  | 40 |
| (8,147) |  |  | 5,016 |  |  | 3,420 |
Total consolidated expense (benefit) | $ | 126 |  |  | $ | (11,802) |  |  | $ | 28,156 |
The following table provides a reconciliation of differences from the U.S. Federal statutory rates as follows (in thousands):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Pretax book income (loss) | $ | 1,290 |  |  | $ | (109,214) |  |  | $ | 117,731 |
Federal tax expense (benefit) at applicable statutory rate | 271 |  |  | (22,935) |  |  | 24,723 |
State and local income taxes (net of federal benefit) | 212 |  |  | (4,948) |  |  | 5,513 |
Rate differential | — |  |  | (5,004) |  |  | — |
Impairment and divestiture | 870 |  |  | 20,111 |  |  | — |
Tax credits | (2,065) |  |  | — |  |  | (3,301) |
Nondeductible officer compensation | 390 |  |  | 490 |  |  | — |
Compensation expense | 964 |  |  | 1,070 |  |  | 1,317 |
Other | (516) |  |  | (586) |  |  | (96) |
Total income tax expense (benefit) | $ | 126 |  |  | $ | (11,802) |  |  | $ | 28,156 |
Deferred Taxes The Company’s deferred income taxes are primarily due to temporary differences between financial and income tax reporting for incentive compensation, depreciation of property, plant and equipment, amortization of intangibles, and other accrued liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Companies are required to assess whether valuation allowances should be established against their deferred tax assets based on the consideration of all available evidence, both positive and negative, using a “more likely than not” standard. In making such judgments, significant weight is given to evidence that can be objectively verified. The Company assesses, on a quarterly basis, the realizability of its deferred tax assets by evaluating all available evidence, both positive and negative, including: (1) the cumulative results of operations in recent years, (2) the nature of recent losses, if applicable, (3) estimates of future taxable income, (4) the length of net operating loss carryforwards (“NOLs”) and (5) the uncertainty associated with a possible change in ownership, which imposes an annual limitation on the use of these carryforwards. As of December 31, 2021 and 2020, the Company retained a valuation allowance of $1.2 million and $1.0 million, respectively, against deferred tax assets related to various state and local NOLs that are subject to restrictive rules for future utilization. As of December 31, 2021 and 2020, the Company had no U.S. federal tax NOLs. The Company incurred a net loss in 2020 and fully utilized that loss in carrybacks. The Company has various multi-state income tax NOLs aggregating approximately $71.0 million which will expire between 2022 and 2042, if unused. The components of deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 were as follows (in thousands):
| December 31,
| 2021 |  | 2020
Deferred tax assets |  |  |
Tax credits and loss carryforwards | $ | 800 |  |  | $ | 2,518 |
Accrued liabilities | 5,764 |  |  | 6,415 |
Incentive compensation | 8,012 |  |  | 9,202 |
Other | 6,098 |  |  | 328 |
| 20,674 |  |  | 18,463 |
Deferred tax liabilities |  |  |
Property, plant and equipment | (22,344) |  |  | (22,355) |
Intangibles | (28,748) |  |  | (40,043) |
Other | (4,364) |  |  | (1,822) |
| (55,456) |  |  | (64,220) |
Net deferred tax liability before valuation allowances and reserves | (34,782) |  |  | (45,757) |
Valuation allowances | (1,237) |  |  | (1,020) |
Net deferred tax liability | $ | (36,019) |  |  | $ | (46,777) |
Tax Reserves The Company’s policy with respect to interest and penalties associated with reserves or allowances for uncertain tax positions is to classify such interest and penalties in Income tax expense (benefit) on the Consolidated Statements of Operations. As of December 31, 2021 and 2020, the total amount of unrecognized income tax benefits, including interest and penalties, was approximately $2.3 million and $2.2 million, respectively, all of which, if recognized, would impact the effective income tax rate of the Company. As of December 31, 2021 and 2020, the Company had recorded a total of $0.8 million and $0.7 million, respectively, of accrued interest and penalties related to uncertain tax positions. The Company expects no significant changes to the facts and circumstances underlying its reserves and allowances for uncertain income tax positions as reasonably possible during the next 12 months. As of December 31, 2021, the Company is subject to unexpired statutes of limitation for U.S. federal income taxes for the years 2018 through 2020. The Company is also subject to unexpired statutes of limitation for Indiana state income taxes for the years 2018 through 2020. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, was as follows (in thousands) and all balances as of December 31, 2021 were included in either Other noncurrent liabilities or Deferred income taxes in the Company’s Consolidated Balance Sheets:
| Unrecognized Tax Benefits
Balance at January 1, 2020 | $ | 1,422 |
Increase in prior year tax positions | 84 |
Balance at December 31, 2020 | 1,506 |
Increase in prior year tax positions | 8 |
Balance at December 31, 2021 | $ | 1,514 |

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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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