Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

(Loss) Income Before Income Taxes and Equity Gains (Losses) in Joint Venture

(Loss) income before income taxes and equity gains (losses) in joint venture is comprised of the following:

	2017			2016			2015
Domestic	$	(16,988	)	$	(26,326	)	$	6,000
Foreign		3,295			(31,194	)		(1,480	)
(Loss) income before income taxes and equity gains (losses) in joint venture	$	(13,693	)	$	(57,520	)	$	4,520

Income Tax (Benefit) Provision

The income tax (benefit) provision consisted of the following:

	2017			2016			2015
Current:
Federal	$	(4,698	)	$	(1,574	)	$	4,577
State		(440	)		465			378
Foreign		606			414			(20	)
Current income tax (benefit) provision		(4,532	)		(695	)		4,935
Deferred:
Federal		1,259			(2,688	)		(2,203	)
State		(112	)		(1,838	)		197
Foreign		1,876			(2,472	)		(296	)
Increase in valuation allowance		154			30,405			0
Deferred income tax provision (benefit)		3,177			23,407			(2,302	)
Total income tax (benefit) provision	$	(1,355	)	$	22,712		$	2,633

Difference Between Statutory U.S. Federal Income Tax and the Corporation's Effective Income Tax

The difference between statutory U.S. federal income tax and the Corporation’s effective income tax was as follows:

	2017			2016			2015
Computed at statutory rate	$	(4,428	)	$	(19,984	)	$	1,402
Tax differential on non-U.S. earnings		(389	)		1,790			106
State income taxes		(398	)		(1,535	)		226
Manufacturers deduction (I.R.C. Section 199)		0			204			(433	)
Meals and entertainment		142			143			136
Tax credits		0			0			(243	)
Goodwill impairment		0			9,191			0
Increase in valuation allowance		154			30,405			0
Repatriation transition tax impact		3,284			0			0
Change in tax rates		0			1,913			224
Change in uncertain tax positions		0			114			91
Acquisition-related costs		0			571			981
Other – net		280			(100	)		143
Total income tax (benefit) provision	$	(1,355	)	$	22,712		$	2,633

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities as of December 31, 2017, and 2016, are summarized below.

	2017			2016
Assets:
Employment – related liabilities	$	10,975		$	18,659
Pension liability – foreign		1,633			2,241
Pension liability – domestic		9,004			16,133
Liabilities related to discontinued operations		186			241
Capital loss carryforwards		308			282
Asbestos-related liability		12,179			21,024
Net operating loss – domestic		674			653
Net operating loss – state		2,782			2,123
Net operating loss – foreign		22,856			19,106
Inventory related		2,764			2,157
Impairment charge associated with investment in MG		1,155			2,184
Investment tax credits – foreign		848			791
Other		3,181			6,660
Gross deferred income tax assets		68,545			92,254
Valuation allowance⁽¹⁾		(38,112	)		(45,449	)
		30,433			46,805
Liabilities:
Depreciation		(26,915	)		(37,584	)
Mark-to-market adjustment – derivatives		(4	)		(187	)
Intangible assets – definite life		(1,186	)		(2,067	)
Intangible assets – indefinite life		(605	)		(731	)
Other		(566	)		(2,003	)
Gross deferred income tax liabilities		(29,276	)		(42,572	)
Net deferred income tax assets	$	1,157		$	4,233

(1)

The decrease in the valuation allowance in 2017 from 2016 is primarily due to the reduction in the U.S. corporate statutory income tax rate from 35% to 21%. Certain deferred income tax assets acquired in the ASW acquisition had valuation allowances recorded in the opening balance sheet. Accordingly, the valuation allowance indicated in the deferred income tax table for 2016 differs from the valuation allowance recognized in the income tax provision for 2016.

Summary of Changes in Unrecognized Tax Benefits

The following summarizes changes in unrecognized tax benefits for the year ended December 31:

	2017			2016			2015
Balance at the beginning of the year	$	236		$	315		$	52
Gross increases for tax positions taken in the current year		0			0			0
Gross increases for tax positions taken in prior years		0			0			283
Gross decreases in tax positions due to lapse in statute of limitations		(119	)		(79	)		(20	)
Gross decreases for tax positions taken in prior years		0			0			0
Gross decreases for tax settlements with taxing authorities		0			0			0
Balance at the end of the year	$	117		$	236		$	315