Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax (Benefit)/Expense

The following tables present components of income tax expense/(benefit) and income before income taxes on continuing operations:

(in thousands)	2017		2016		2015
Income tax based on income from continuing operations, at estimated tax rates of 32%, 35%, and 32%, respectively	$17,519		$27,629		$16,388
Income tax before discrete items	17,519		27,629		16,388
Discrete tax expense(benefit):
Worthless stock deduction	-		-		(28,553	)
Net impact of mandatory deemed repatriations	5,758		-		-
Provision for/resolution of tax audits and contingencies, net	1,329		(2,856	)	6,500
Adjustments to prior period tax liabilities	(840	)	586		(867	)
Provision for/adjustment to beginning of year valuation allowances	(3,522	)	(88	)	75
Enacted tax legislation	1,879		183		670
Total income tax expense/(benefit)	$22,123		$25,454		($5,787	)

Schedule of Income/(Loss) From Continuing Operations

(in thousands)	2017		2016		2015
Income/(loss) before income taxes:
U.S.	($5,865	)	$8,556		($7,211	)
Non-U.S.	60,573		69,710		58,689
	$54,708		$78,266		$51,478
Income tax provision:
Current:
Federal	$1,551		$3,728		$-
State	1,770		176		1,993
Non-U.S.	19,282		19,979		20,842
	$22,603		$23,883		$22,835
Deferred:
Federal	$1,881		$2,138		($34,135	)
State	(1,237	)	1,984		(40	)
Non-U.S.	(1,124	)	(2,551	)	5,553
	($480	)	$1,571		($28,622	)
Total income tax expense/(benefit)	$22,123		$25,454		($5,787	)

Schedule of significant components of deferred income tax expense/(benefit)

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

(in thousands)	2017		2016		2015
Net effect of temporary differences	($5,774	)	$7,214		($7,615	)
Foreign tax credits	8,340		(6,869	)	(17,874	)
Retirement benefits	(502	)	1,734		1,844
Net impact to operating loss carryforwards	(900	)	(603	)	(5,722	)
Enacted changes in tax laws and rates	1,878		183		670
Adjustment to beginning-of-the-year valuation allowance balance for changes in circumstances	(3,522	)	(88	)	75
Total	($480	)	$1,571		($28,622	)

Reconciliation of the U.S. Federal Statutory Tax Rate to the Company's Effective Income Tax Rate

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:

	2017		2016		2015
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	1.0		2.3		2.4
Non-U.S. local income taxes	5.9		3.5		4.1
Foreign permanent adjustments	0.4		1.6		7.4
Foreign rate differential	(10.5	)	(11.3	)	(13.6	)
Net U.S. tax on non-U.S. earnings and foreign withholdings	11.9		5.8		(1.8	)
Provision for/resolution of tax audits and contingencies, net	2.4		(3.4	)	12.6
Research and development and other tax credits	(1.5	)	(1.2	)	(2.4	)
Adjustment to beginning-of-the-year valuation allowances	(6.4	)	(0.1	)	0.1
Worthless stock deduction	-		-		(55.5	)
Other	2.2		0.3		0.5
Effective income tax rate	40.4	%	32.5	%	(11.2	)%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	U.S.		Non-U.S.
(in thousands)	2017	2016	2017		2016
Noncurrent deferred tax assets:
Accounts receivable	$557	$1,155	$1,341		$1,381
Inventories	1,109	1,193	961		1,868
Deferred compensation	3,300	7,533	1,362		-
Depreciation and amortization	-	2,786	3,211		2,564
Postretirement benefits	18,286	26,602	1,464		2,067
Tax loss carryforwards	1,368	1,760	22,639		26,084
Tax credit carryforwards	41,920	50,624	1,654		1,186
Other	3,891	7,828	-		2,876
Noncurrent deferred tax assets
before valuation allowance	70,431	99,481	32,632		38,026
Less: valuation allowance	-	-	(16,057	)	(22,821	)
Total noncurrent deferred tax assets	70,431	99,481	16,575		15,205
Total deferred tax assets	$70,431	$99,481	$16,575		$15,205
Noncurrent deferred tax liabilities:
Unrepatriated foreign earnings	$914	$1,602	$-		$-
Depreciation and amortization	20,170	43,156	-		-
Deferred gain	4,169	7,156	-		-
Other	81	2,198	2,597		2,897
Total deferred tax liabilities	$25,334	$54,112	$2,597		$2,897
Net deferred tax asset	$45,097	$45,369	$13,978		$12,308

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits, all of which, if recognized, would impact the effective tax rate:

(in thousands)	2017		2016		2015
Unrecognized tax benefits balance at January 1	$4,183		$19,606		$19,509
Increase in gross amounts of tax positions related to prior years	480		62		2,315
Decrease in gross amounts of tax positions related to prior years	(50	)	(2,129	)	(145	)
Increase in gross amounts of tax positions related to current years	-		585		79
Decrease due to settlements with tax authorities	(381	)	(14,029	)	(42	)
Decrease due to lapse in statute of limitations	(29	)	(163	)	(90	)
Currency translation	306		251		(2,020	)
Unrecognized tax benefits balance at December 31	$4,509		$4,183		$19,606

Schedule of Current Income Taxes Prepaid and Deferred

As of December 31, 2017 and 2016, current income taxes prepaid and receivable consisted of the following:

(in thousands)	2017	2016
Prepaid taxes	$4,872	$3,914
Taxes receivable	1,394	1,299
Total current income taxes prepaid and receivable	$6,266	$5,213

Schedule of Non-Current Income Taxes Receivable and Deferred

As of December 31, 2017 and 2016, noncurrent deferred tax liabilities and other credits consisted of the following:

(in thousands)	2017	2016
Deferred income taxes	$9,573	$11,188
Other liabilities	1,418	1,201
Total noncurrent deferred taxes and other liabilities	$10,991	$12,389