FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 70
Table of Contents
Note 15 - Income Taxes
The reconciliation of the provision for income taxes to the amount computed by applying the U.S. federal statutory tax
rate to earnings before income taxes is as follows:
2021
Earnings before income taxes:
Domestic
Foreign
Total
Federal statutory income tax rate
Increase (decrease) in income taxes resulting from:
Impacts of Tax Act
Revaluation of deferred taxes
Withholding taxes
Reversal of indefinite reinvestment assertion
R&D and foreign tax credits
Foreign tax rates
Equity-based compensation
Change in valuation allowance for deferred taxes
State taxes, net of federal benefit
Other
Effective income tax rate
$
$
141,665
62,109
203,774
21.0 %
(1.2)%
1.6 %
0.4 %
0.2 %
(4.6)%
4.4 %
(0.1)%
(1.6)%
2.1 %
0.6 %
22.8 %
2020
$
$
1,126
4,291
5,417
21.0 %
(96.4)%
(21.6)%
27.5 %
(2.9)%
(102.8)%
76.0 %
(6.5)%
21.1 %
(1.9)%
16.6 %
(69.9)%
2019
$
$
136,308
90,644
226,952
21.0 %
0.4 %
(0.2)%
1.0 %
0.6 %
(2.1)%
2.3 %
(0.7)%
(0.7)%
1.4 %
0.1 %
23.1 %
Our accounting policy is to treat tax on the Global Intangible Low-Tax Income ("GILTI") as a current period cost
included in tax expenses the year incurred. As such, we will not be measuring the impact of the GILTI in our
determination of deferred taxes. In 2021, we recorded $101 of GILTI tax and received a benefit of $2,053 related to
the Foreign-Derived Intangible Income deduction. In 2021, we also recorded a tax benefit for provision to return
adjustments of $3,057 related to domestic research and development tax credits and the adoption of the GILTI high
tax election. In addition, we recorded a current year expense of $1,446 for a total accrual of $10,043 for taxes on
undistributed earnings not considered permanently reinvested.
During 2021, 2020 and 2019, we repatriated available unremitted earnings from various foreign subsidiaries that were
previously taxed under the Tax Act of $41,987, $23,001, $103,227, respectively. We do not indefinitely reinvest
unremitted earnings and therefore we maintain a liability related to the remaining unremitted earnings generated by
the foreign subsidiaries, which primarily relates to foreign withholding taxes. We continue to be permanently invested
in outside basis differences other than the unremitted earnings as we have no plans to liquidate or sell those foreign
subsidiaries.
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