Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense from Continuing Operations |
Income tax expense from continuing operations is summarized as follows (in thousands):
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Reconciliation of Income Taxes at Federal Statutory Rate to Effective Tax Rate | A reconciliation of income taxes at the federal statutory rate to the effective tax rate is summarized in the following table:
(1) The Company generated $1.7 million, $5.4 million and $2.6 million of withholding tax expense for fiscal 2021, 2020 and 2019, respectively, and $4.6 million, $4.0 million and $3.5 million of foreign-derived tax credits, excluding the impact of tax reform for fiscal 2021, 2020 and 2019, respectively.
(2) Fiscal 2021, 2020 and 2019 pretax earnings include $6.2 million, $(3.2) million and $22.8 million, respectively, in impairment & divestiture charges (benefits) related to goodwill, intangible assets, tangible assets and the cumulative effect of foreign currency rate changes of which $3.5 million, $0.3 million and $14.0 million, respectively, are not deductible for income tax purposes.
(3) Incremental valuation allowances of $4.9 million and $9.4 million and $1.7 million were recorded in fiscal 2021, 2020 and 2019, respectively, due to uncertainty regarding realization of tax assets, which were offset by a reduction of $9.1 million, $12.3 million and $2.9 million of valuation allowances for fiscal 2021, 2020 and 2019, respectively. These amounts exclude valuation allowances against tax assets related to the tax reform.
(4) During fiscal 2020, the Company generated a net expense of $4.1 million as a result of taxable liquidations of subsidiaries.
(5) During fiscal 2021, the Company generated $3.5 million of tax benefit related to audits and adjustments as compared to a tax benefit of $2.2 million in fiscal 2020 and a tax expense of $1.9 million in fiscal 2019.
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Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities |
Temporary differences and carryforwards that gave rise to deferred tax assets and liabilities include the following items (in thousands):
(1) The net deferred income tax asset is reflected on the balance sheet in two categories: an asset of $14.8 million and $22.6 million for fiscal 2021 and 2020, respectively, is included in "Other long-term assets" and a liability of $4.4 million and $1.7 million for fiscal 2021 and 2020, respectively, is included in "Deferred income taxes".
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Changes in Gross Liability for Unrecognized Tax benefits, Excluding Interest and Penalties |
Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, are as follows (in thousands):
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