Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of components of provision for income taxes

	Year Ended December 31
	2016		2015		2014
Current
Federal	$	6,481	$	5,967	$	6,200
State and local		523		577		1,587
Foreign		4,664		6,597		6,138
		11,668		13,141		13,925
Deferred
Federal		(1,795)		5,471		7,506
State and local		435		563		488
Foreign		(4,032)		748		1,219
		(5,392)		6,782		9,213
Provision for income taxes	$	6,276	$	19,923	$	23,138

Schedule of differences between U.S. federal statutory tax rate and effective income tax rate

	Year Ended December 31
	2016		2015		2014
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal income tax benefit	2.9		1.8		2.2
Tax rate differential on foreign income	(6.5)		(3.1)		(2.9)
Permanent tax differences	3.2		(1.6)		0.3
Valuation allowance	0.8		0.3		—
Settlement of uncertain tax positions	—		—		(1.9)
Tax statute expiration	(0.3)		(0.6)		(0.6)
Change in uncertain tax positions	0.4		0.1		0.1
Deferred tax benefit for Section 987	(2.7)		—		—
Other — net	(1.5)		(0.5)		(0.3)
Effective income tax rate	31.3	%	31.4	%	31.9	%

Schedule of gross operating loss carryforwards and tax credit carryforwards

Type	Amount		Expiration Date
Foreign tax credits	$	183	2017
Capital loss carryforwards		2,009	2018
State tax credits (1)		2,184	2023 - 2027; unlimited
Operating loss carryforwards — federal		485	2029
Operating loss carryforwards — state (2)		10,560	2018 - 2036
Operating loss carryforwards — foreign (3)		16,768	2023 - unlimited

(1) Of the total state tax credit carryforwards, approximately 50% begin to expire in 2023.

(2) Of the total state operating loss-carryforwards, approximately 92% expire in 2021 or later.

(3) Of the total foreign tax operating loss carryforwards, approximately 99% have no expiration.  The increase from the prior year is primarily due to the New Business.

Schedule of components of deferred taxes

	December 31
	2016		2015
Deferred tax assets
Net operating loss and credit carryforwards (1) (2)	$	7,763	$	4,875
Accruals and other timing items		15,824		11,159
Inventories		11,181		15,403
Pensions		12,186		11,303
Valuation allowance		(2,510)		(2,682)
Total deferred tax assets		44,444		40,058
Deferred tax liabilities
Property, plant and equipment	$	45,300	$	49,272
Goodwill and other intangible assets		15,716		6,108
U.S. liability on foreign deferred taxes		1,095		708
Total deferred tax liabilities		62,111		56,088
Net deferred tax liability	$	(17,667)	$	(16,030)

(1) Uncertain tax liabilities of approximately $0.2 million partially offset the net operating losses and credit carryforwards in both 2016 and 2015.

(2) Net indirect benefits on uncertain tax liabilities of approximately $72 thousand and $61 thousand are included in the U.S. net operating loss and credit carryforwards in 2016 and 2015, respectively.

Schedule of reconciliation of unrecognized income tax benefits

	Year Ended December 31
	2016		2015		2014
Balance as of January 1	$	778	$	1,187	$	3,435
Gross increases for tax positions of current year		108		78		75
Lapse of statute of limitations		(101)		(417)		(500)
Settlement of uncertain tax positions		—		(70)		(1,823)
Balance as of December 31	$	785	$	778	$	1,187

Summary of tax years that remain subject to examination for major jurisdictions

Jurisdiction	Years
United States	2012 - 2016
Kentucky	2012 - 2016
Pennsylvania	2013 - 2016
Belgium	2013 - 2016
China	2013 - 2016
Germany	2013 - 2016
United Kingdom	2012 - 2016
Japan	2011,2012,2016
Singapore	2012 - 2016
France	2016
Italy	2012 - 2016