Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Provision for Benefit from Income Taxes from Operations

The provision for (benefit from) income taxes from operations consisted of the following:

	Year ended December 31
In thousands	2017			2016			2015
Current taxes
Federal	$	(1,961	)	$	2,216		$	5,047
State		64			(1,112	)		(1,680	)
Foreign		14,292			10,203			12,536
		12,395			11,307			15,903
Deferred taxes and other
Federal		11,662			(24,411	)		(7,287	)
State		3,388			(1,723	)		564
Foreign		3,976			4,079			4,821
		19,026			(22,055	)		(1,902	)
Income tax provision (benefit)	$	31,421		$	(10,748	)	$	14,001

Schedule of Domestic and Foreign Components of Pretax Income (Loss) from Operations

The following are the domestic and foreign components of pretax income (loss) from operations:

	Year ended December 31
In thousands	2017			2016			2015
United States	$	(40,920	)	$	(63,315	)	$	2,382
Foreign		80,255			74,121			76,194
Total pretax income	$	39,335		$	10,806		$	78,576

Schedule of Reconciliation of Federal Statutory Rate to Company's Effective Tax Rate

A reconciliation between the income tax provision, computed by applying the statutory federal income tax rate of 35% to income before income taxes, and the actual income tax provision is as follows:

	Year ended December 31
	2017			2016			2015
Federal income tax provision at statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		0.4			(15.0	)		0.3
Foreign income tax rate differential		(28.7	)		(96.3	)		(8.6	)
Rate changes due to enacted legislation		(0.6	)		(6.7	)		—
Tax effect of credits		(16.1	)		(30.3	)		(1.9	)
Provision for (resolution of ) tax matters		16.9			2.8			(2.1	)
State benefit due to enacted legislation		(4.1	)		—			—
Effect of U.S. tax law change ⁽¹⁾		53.2			—			—
Valuation allowance		23.3			7.1			0.4
Permanent differences on non-U.S. earnings		—			—			(4.4	)
Other		0.6			3.9			(0.9	)
Actual tax rate		79.9	%		(99.5	)%		17.8	%

(1)

Due to the TCJA which was enacted in December 2017, provisional mandatory transition tax on accumulated foreign earnings was accrued as of December 31, 2017. Our U.S. deferred tax assets and liabilities as of December 31, 2017 were re-measured from 35% to 21%.

The provisional effects of the TCJA are $39.0 million of deferred income tax expense, including a $6.8 million reversal of a valuation allowance, and $18.1 million of deferred income tax benefit for the year ended December 31, 2017.

Schedule of Deferred Tax Assets and Liabilities

The sources of deferred income taxes were as follows at December 31:

In thousands	2017			2016
Reserves	$	3,145		$	4,625
Environmental		11,189			20,868
Compensation		6,782			8,950
Post-retirement benefits		12,570			18,318
Research & development expenses		6,787			6,949
Inventories		1,891			1,464
Tax carryforwards		21,988			14,438
Other		2,106			993
Deferred tax assets		66,458			76,605
Valuation allowance		(7,405	)		(4,066	)
Net deferred tax assets		59,053			72,539
Property		(98,809	)		(81,837	)
Intangible assets		(17,647	)		(16,561	)
Pension		(21,941	)		(29,041	)
Other		(4,110	)		—
Deferred tax liabilities		(142,507	)		(127,439	)
Net deferred tax liabilities	$	(83,454	)	$	(54,900	)

Schedule of Non-Current Deferred Tax Assets and Liabilities Balance Sheet Captions

Non-current deferred tax assets and liabilities are included in the following balance sheet captions:

	December 31
In thousands	2017		2016
Other assets	$	117	$	95
Deferred income taxes		83,571		54,995

Schedule of Unrecognized Tax Benefit

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

In millions	2017			2016			2015
Balance at January 1	$	14.2		$	12.2		$	14.9
Increases in tax positions for prior years		1.7			2.0			0.0
Decreases in tax positions for prior years		—			(1.4	)		(4.3	)
Increases in tax positions for current year		11.9			1.9			1.9
Settlements		—			(0.2	)		0.0
Lapse in statutes of limitation		(0.9	)		(0.3	)		(0.3	)
Balance at December 31	$	26.9		$	14.2		$	12.2

Summary of Tax Years that Remain Subject to Examination by Major Jurisdiction

The following table summarizes tax years that remain subject to examination by major jurisdiction:

	Open Tax Years
Jurisdiction	Examinations not yet initiated	Examination in progress
United States
Federal	2014 - 2017	N/A
State	2013 - 2017	2014
Canada⁽¹⁾	2010-2013; 2017	2014 - 2016
Germany⁽¹⁾	2016 - 2017	2011 - 2015
France	2015 - 2017	2012
United Kingdom	2016 - 2017	N/A
Philippines	2015, 2017	2016

(1)	includes provincial or similar local jurisdictions, as applicable.

Summary of Information Related to Interest and Penalties on Uncertain Tax Positions

The following table summarizes information related to interest and penalties on uncertain tax positions:

	As of or for the year ended December 31,
In millions	2017		2016			2015
Accrued interest payable	$	0.8	$	0.5		$	0.6
Interest expense (income)		0.3		(0.1	)	–
Penalties	–		–			–