Income Taxes

The components of income tax expense (benefit) are as follows:



	Year Ended December 31,
In thousands	2015			2014		2013
Current
Federal	$	6,998		$	5,836	$	8,689
State and Local	1,177			619		3,554
Foreign	1,146			1,062		1,189
Total Current	$	9,321		$	7,517	$	13,432

Deferred
Federal	$	(38,278	)	$	2,862	$	3,532
State and local	(2,912		)	2,177		(2,142		)
Foreign	(45		)	759		354
Total Deferred	$	(41,235	)	$	5,798	$	1,744

Total income tax expense	$	(31,914	)	$	13,315	$	15,176

The U.S. and foreign components of income from continuing operations before income taxes were as follows:



	Year Ended December 31,
In thousands	2015			2014		2013
United States	$	(205,435	)	$	29,962	$	33,143
Foreign	2,593			7,344		6,474
Total income (loss) from continuing operations before income taxes	$	(202,842	)	$	37,306	$	39,617

The differences between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate to income before income taxes were as follows:



	Year Ended December 31,
In thousands	2015			Rate		2014			Rate		2013			Rate
Computed expected income tax expense (benefit)	$	(70,995	)	35.0	%	$	13,057		35.0	%	$	13,866		35.0	%
Goodwill impairment basis difference	36,664			-18.1	%	—			—	%	—			—	%
Sold operations basis difference	686			-0.3	%	—			—	%	—			—	%
Net effect of state income taxes	857			-0.4	%	1,817			4.9	%	918			2.3	%
Foreign subsidiary dividend inclusions	557			-0.3	%	135			0.4	%	1,125			2.8	%
Foreign tax rate benefit	(90		)	—	%	(749		)	-2.0	%	(570		)	-1.4	%
Change in beginning of year valuation allowance	(153		)	0.1	%	(537		)	-1.4	%	(87		)	-0.2	%
Non deductible interest	715			-0.4	%	—			—	%	—			—	%
Other, net	(155		)	0.1	%	(408		)	-1.2	%	(76		)	-0.2	%
Income tax expense (benefit) for the period	$	(31,914	)	15.7	%	$	13,315		35.7	%	$	15,176		38.3	%

Total income tax expense (benefit) was allocated as follows:



	Year Ended December 31,
In thousands	2015			2014			2013
Continuing operations	$	(31,914	)	$	13,315		$	15,176
Discontinued operations	—			—			(7,822		)
Stockholders’ equity	2,021			(9,527		)	17,373
Total	$	(29,893	)	$	3,788		$	24,727

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:



	Year Ended December 31,
In thousands	2015			2014
Deferred tax assets
Deferred compensation and retirement plan	$	22,884		$	25,432
Accrued expenses not deductible until paid	3,612			3,925
Employee stock-based compensation	3,709			1,182
Accrued payroll not deductible until paid	707			948
Accounts receivable, net	1,208			1,175
Other, net	417			280
Federal net operating loss carryforwards	—			130
Foreign net operating loss carryforwards	2,657			2,805
State net operating loss carryforwards	1,956			2,010
Foreign tax credit carryforwards	785			739
Capital loss carryforwards	6,278			7,182
Total gross deferred tax assets	44,213			45,808
Less valuation allowances	(9,958		)	(10,933		)
Net deferred tax assets	$	34,255		$	34,875

Deferred tax liabilities
Property, plant and equipment	$	(6,154	)	$	(6,484	)
Goodwill and other intangibles	(45,212		)	(82,702		)
Other, net	(561		)	(144		)
Total gross deferred tax liabilities	(51,927		)	(89,330		)
Net deferred tax liabilities	$	(17,672	)	$	(54,455	)

In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based on the expectation of future taxable income and that the deductible temporary differences will offset existing taxable temporary differences, we believe it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances, at December 31, 2015 and 2014.

As discussed in Note A, Significant Accounting Policies, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires that deferred tax assets and liabilities be classified as non-current on the balance sheet rather than being separately presented as current and non-current portions. On December 31, 2015, we elected to early adopt ASU No. 2015-17 retrospectively, thus reclassifying $3.7 million and $5.1 million of deferred tax assets to non-current at December 31, 2015 and 2014, respectively.

We or one of our subsidiaries files income tax returns in the U.S. federal, U.S. state, and foreign jurisdictions. For U.S. federal, U.S. state, and foreign returns, we are no longer subject to tax examinations for years prior to 2011.

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:



In thousands
Balance at January 1, 2014	$	27
Additions for current year tax positions	—
Additions for prior year tax positions	—
Reductions for prior year tax positions	—
Lapse of statute	(27		)
Settlements	—
Balance at December 31, 2014	$	—

Additions for current year tax positions	$	—
Additions for prior year tax positions	761
Reductions for prior year tax positions	—
Lapse of statute	—
Settlements	—
Balance at December 31, 2015	$	761

Included in the balance as of December 31, 2015 are $0.8 million of unrecognized tax benefits that, if recognized, would impact the effective tax rate. We anticipate that it is reasonably possible that we will have a reduction in the liability of up to $0.8 million during 2016 as a result of settlements.

We have elected to classify any interest and penalties related to income taxes within income tax expense in our Consolidated Statements of Comprehensive Income (Loss). We did not recognize any tax benefits for the reduction of accrued interest and penalties associated with the reduction of the liability for unrecognized tax benefits during the years ended December 31, 2015 and 2014. We did not have any interest and penalties accrued at December 31, 2015 or 2014.

As of December 31, 2015, we had net operating loss carryforwards that are available to reduce future taxable income and that will begin to expire in 2030. Our capital loss carryforwards that are available to reduce future capital gains will expire in 2018.

The valuation allowance for deferred tax assets was $10.0 million and $10.9 million at December 31, 2015 and 2014. The net change in valuation allowance was a decrease of $0.9 million in 2015 and an increase $0.2 million in 2014. The valuation allowance at December 31, 2015 and 2014 relates to net operating loss, capital loss, and foreign tax credit carryforwards, which are not expected to be realized.

Deferred income taxes have not been provided on the undistributed earnings of our foreign subsidiaries as these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. As of December 31, 2015, the net cumulative undistributed earnings of these subsidiaries were approximately $3.7 million. If those earnings were not considered permanently reinvested, U.S. federal deferred income taxes would have been recorded, after consideration of U.S. foreign tax credits. However, it is not practicable to estimate the amount of additional taxes which may be payable upon the distribution of their cumulative earnings. As of December 31, 2015 approximately $4.5 million of cash is located within certain foreign subsidiaries that if repatriated would require that we accrue and pay approximately $2.1 million in additional tax.

Cash payments for income taxes were $10.1 million, $4.9 million, and $11.3 million in 2015, 2014, and 2013, respectively.