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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Provision for Benefit from Income Taxes from Continuing Operations

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

	Year ended December 31
In thousands	2018			2017			2016
Current taxes
Federal	$			$	(1,323	)	$	(763	)
State		442			107			315
Foreign		14,985			14,292			10,203
		15,427			13,076			9,755
Deferred taxes and other
Federal		(9,242	)		5,375			(38,811	)
State		251			2,652			(3,428	)
Foreign		1,287			3,976			4,079
		(7,704	)		12,003			(38,160	)
Income tax provision (benefit)	$	7,723		$	25,079		$	(28,405	)

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 continuing operations:

	Year ended December 31
In thousands	2018			2017			2016
United States	$	(59,264	)	$	(60,788	)	$	(116,703	)
Foreign		66,539			80,255			74,121
Total pretax income (loss)	$	7,275		$	19,467		$	(42,582	)

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

The following table sets forth a reconciliation of the statutory federal income tax rate to our actual effective tax rate for continuing operations.

	Year ended December 31
	2018			2017			2016
Federal income tax provision at statutory rate		21.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		(15.9	)		(1.8	)		7.0
Foreign income tax rate differential		(18.9	)		(58.0	)		24.4
Tax effect of tax credits		1.3			(20.1	)		—
Provision for (resolution of) tax matters		46.5			27.8			0.4
Rate changes due to enacted legislation		7.2			(1.3	)		1.9
State benefit due to enacted legislation		—			(8.2	)		—
Effect of U.S. tax law change ⁽¹⁾		(7.5	)		107.5			—
Global Intangible Low-taxed Income		33.8			—			—
Stock-based compensation		10.0			(0.2	)		0.2
Nondeductible officer's compensation		5.2			—			—
Valuation allowance		15.7			47.0			(1.8	)
Other		7.8			1.1			(0.4	)
Actual tax rate		106.2	%		128.8	%		66.7	%

(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 for the year ended December 31, 2017, 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.

Schedule of Deferred Tax Assets and Liabilities

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

In thousands	2018			2017
Reserves	$	3,720		$	3,145
Environmental		10,795			11,189
Compensation		3,957			6,782
Post-retirement benefits		2,133			12,570
Research & development expenses		—			6,787
Inventories		(35	)		1,891
Tax carryforwards		21,843			21,988
Other		3,506			2,106
Deferred tax assets		45,919			66,458
Valuation allowance		(30,029	)		(7,405	)
Net deferred tax assets		15,890			59,053
Property		(66,426	)		(98,809	)
Intangible assets		(22,231	)		(17,647	)
Pension		(3,890	)		(21,941	)
Other		(1,935	)		(4,110	)
Deferred tax liabilities		(94,482	)		(142,507	)
Net deferred tax liabilities	$	(78,592	)	$	(83,454	)

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	2018		2017
Other assets	$	59	$	117
Deferred income taxes		78,651		83,571

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	2018			2017			2016
Balance at January 1	$	26.9		$	14.2		$	12.2
Increases in tax positions for prior years		0.3			1.7			2.0
Decreases in tax positions for prior years		(1.0	)		—			(1.4	)
Acquisition related:
Purchase Accounting		0.3			—			—
Increases in tax positions for current year		4.0			11.9			1.9
Settlements		(0.2	)		—			(0.2	)
Lapse in statutes of limitation		(0.7	)		(0.9	)		(0.3	)
Balance at December 31	$	29.6		$	26.9		$	14.2

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	2015 - 2018	N/A
State	2014 - 2018	N/A
Canada⁽¹⁾	2011-2013; 2018	2014 - 2017
Germany⁽¹⁾	2016 - 2018	2011 - 2015
France	2018	2015-2017
United Kingdom	2017 - 2018	N/A
Philippines	2015, 2018	2016, 2017

(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	2018		2017		2016
Accrued interest payable	$	1.1	$	0.8	$	0.5
Interest expense (income)		0.3		0.3		(0.1	)
Penalties	–		–		–