Taxes on Income (Tax Benefits) (Tables)

12 Months Ended

Dec. 31, 2015

Income (loss) from continuing operations before taxes on income (tax benefits) was as follows (in thousands):



	Years Ended December 31,
	2015			2014			2013
Domestic	$	(15,944	)	$	(75,112	)	$	23,695
Foreign	17,159			39,137			35,307
Total	$	1,215		$	(35,975	)	$	59,002

Schedule of Components of Income Tax Expense (Benefit)

Provisions (benefits) for taxes on income (loss) from continuing operations consisted of the following components (in thousands):



	Years Ended December 31,
	2015			2014			2013
Current:
Federal	$	2,150		$	(2,112	)	$	8,603
Foreign	5,600			10,586			6,078
State	528			2,635			527
Subtotal	8,278			11,109			15,208
Deferred:
Federal	218			(18,629		)	(2,075		)
Foreign	1,382			3,034			(727		)
State	(673		)	646			(252		)
Subtotal	927			(14,949		)	(3,054		)
Total tax provision (benefit)	$	9,205		$	(3,840	)	$	12,154

Schedule of Effective Income Tax Rate Reconciliation

Income tax (benefit) expense differed from the amounts computed by applying the U.S. federal income tax rate of 35% to income (loss) before income taxes, equity in income (loss) of joint ventures and minority interests as a result of the following (in thousands):



	Years Ended December 31,
	2015			2014			2013
Income taxes (benefit) at U.S. federal statutory tax rate	$	425		$	(12,591	)	$	20,651
Increase (decrease) in taxes resulting from:
Change in the balance of the valuation allowance for deferred tax assets allocated to foreign income tax expense	(756		)	7,785			1,447
Change in the balance of the valuation allowance for deferred tax assets allocated to state income tax expense	4,834			5,206			115
State income taxes, net of federal income tax benefit	(94		)	(3,073		)	64
Divestitures	2,269			—			—
Meals and entertainment	761			863			1,034
Changes in taxes previously accrued	(489		)	(1,932		)	(3,098		)
Foreign tax rate differences	(1,468		)	(9,215		)	(4,892		)
Goodwill impairment	3,485			9,690			—
Recognition of uncertain tax positions	24			(96		)	(89		)
Settlement of escrow arrangement	(1,115		)	—			—
Contingent consideration reversal	—			—			(1,461		)
Domestic Production Activities deduction	(528		)	(81		)	(1,548		)
Incremental U.S. taxes on undistributed foreign earnings	2,102			—			—
Other matters	(245		)	(396		)	(69		)
Total tax provision (benefit)	$	9,205		$	(3,840	)	$	12,154
Effective tax rate	757.6		%	10.7		%	20.6		%

Schedule of Deferred Tax Assets and Liabilities

Net deferred taxes consisted of the following (in thousands):



	December 31,
	2015			2014
Deferred income tax assets:
Foreign tax credit carryforwards	$	358		$	1,477
Net operating loss carryforwards	14,688			19,355
Accrued expenses	24,449			21,378
Other	8,285			7,207
Total gross deferred income tax assets	47,780			49,417
Less valuation allowance	(18,897		)	(19,353		)
Net deferred income tax assets	28,883			30,064
Deferred income tax liabilities:
Property, plant and equipment	(11,438		)	(7,499		)
Intangible assets	(14,525		)	(22,653		)
Undistributed foreign earnings	(9,153		)	(7,051		)
Other	(8,248		)	(6,859		)
Total deferred income tax liabilities	(43,364		)	(44,062		)
Net deferred income tax liabilities	$	(14,481	)	$	(13,998	)

The Company’s tax assets and liabilities, netted by taxing location, are in the following captions in the balance sheets (in thousands):



	December 31,
	2015			2014
Current deferred income tax assets, net	$	7,804		$	9,516
Current deferred income tax liabilities, net ⁽¹⁾	(5,029		)	(3,935		)
Noncurrent deferred income tax assets, net	2,130			3,334
Noncurrent deferred income tax liabilities, net	(19,386		)	(22,913		)
Net deferred income tax liabilities	$	(14,481	)	$	(13,998	)

__________________________


⁽¹⁾	The December 31, 2015 balance includes $1.5 million of deferred income tax liabilities related to BPPC, which are classified as held for sale. See Note 5.

Summary of Valuation Allowance

Activity in the valuation allowance is summarized as follows (in thousands):



	Years Ended December 31,
	2015			2014			2013
Balance, at beginning of year	$	19,353		$	7,797		$	6,574
Additions	7,783			14,442			1,754
Reversals	(5,294		)	(2,090		)	(131		)
Other adjustments	(2,945		)	(796		)	(400		)
Balance, at end of year	$	18,897		$	19,353		$	7,797

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):



	Years Ended December 31,
	2015			2014			2013
Balance at January 1,	$	2,672		$	2,936		$	3,170
Additions for tax positions of prior years	10			36			30
Lapse in statute of limitations	(218		)	(252		)	(236		)
Foreign currency translation	(54		)	(48		)	(28		)
Balance at December 31, total tax provision	$	2,410		$	2,672		$	2,936