Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of components of income before incomes taxes

	Year ended December 31,
(in thousands)	2016		2015		2014
Domestic operations	$	63,867	$	4,784	$	2,814
Foreign operations		25,355		27,366		39,252
Income before income taxes	$	89,222	$	32,150	$	42,066

Schedule of reconciliation of income taxes

	Year ended December 31,
(in thousands)	2016			2015			2014
Income tax expense computed at federal statutory income tax rate	$	31,229		$	11,252		$	14,723
Foreign taxes, net of credits		(1,804)			418			2,835
Net adjustments for uncertain tax positions		706			4,731			525
State and local taxes		(525)			(1,108)			(1,659)
Equity appreciation rights		372			693			-
Transaction costs		3,078			414			-
Indemnified taxes		1,594			(1,106)			-
Fair value adjustment for common stock warrants		3,029			10,853			268
Valuation allowance		955			7,872			2,476
Deferred charge		1,009			807			(1,491)
Tax credits		(704)			(7,003)			(2,176)
Miscellaneous other, net		768			171			1,199
Income tax expense as reported	$	39,707		$	27,994		$	16,700
Effective income tax rate		44.5	%		87.1	%		39.7	%

Schedule of reconciliation of activity related to unrecognized tax benefits, excluding accrued interest and penalties

(in thousands)	2016		2015		2014
Unrecognized tax benefits at beginning of year	$	13,120	$	8,845	$	4,451
Gross additions - prior year tax positions		1,960		3,045		-
Gross additions - current year tax positions		747		1,605		4,798
Gross reductions - prior year tax positions		(4,457)		(333)		(357)
Impact of change in foreign exchange rates		(23)		(42)		(47)
Unrecognized tax benefits at end of year	$	11,347	$	13,120	$	8,845

Schedule of income tax expense

	Year ended December 31,
(in thousands)	2016		2015		2014
Current expense (benefit)
United States	$	3,702	$	5,455	$	(1,125)
Foreign		28,156		20,351		29,118
Current income tax expense (benefit)		31,858		25,806		27,993
Deferred expense (benefit)
United States		9,489		(152)		(10,425)
Foreign		(1,640)		2,340		(868)
Deferred income tax expense (benefit)		7,849		2,188		(11,293)
Total income tax expense	$	39,707	$	27,994	$	16,700

Schedule of components of net deferred tax assets (liabilities)

	December 31,
(in thousands)	2016		2015
Deferred tax assets
Compensation and benefits	$	22,053	$	24,736
Share-based compensation		5,474		-
Equity appreciation rights		57,146		62,679
Pension and other postretirement benefits		45,926		39,268
Inventories		9,120		7,011
Accounts receivable		2,942		3,790
Customer sales incentives		3,254		2,761
Transaction costs		3,157		3,601
Other reserves		5,764		6,056
Interest		2,260		5,852
Miscellaneous		1,076		160
Net operating loss and other tax carryforwards		55,936		47,557
Gross deferred tax assets		214,108		203,471
Valuation allowance		(21,726)		(20,771)
Total deferred tax assets		192,382		182,700
Deferred tax liabilities
Property, plant and equipment		(17,496)		(15,043)
Identifiable intangible assets		(46,701)		(38,075)
Foreign exchange derivative instruments		(4,076)		(3,600)
Miscellaneous		(1,145)		(829)
Total deferred tax liabilities		(69,418)		(57,547)
Net deferred tax asset	$	122,964	$	125,153

Schedule of changes in valuation allowance for deferred tax assets

	Year ended December 31,
(in thousands)	2016		2015		2014
Valuation allowance at beginning of year	$	20,771	$	13,850	$	10,510
Increases (decreases) recorded to income tax provision		955		6,921		3,340
Valuation allowance at end of year	$	21,726	$	20,771	$	13,850