Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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)	2018		2017		2016
Income tax based on income from continuing operations, at
estimated tax rates of 31%, 32%, and 35%, respectively	$36,044		$17,519		$27,629
Income tax before discrete items	36,044		17,519		27,629
Discrete tax expense(benefit):
Net impact of mandatory deemed repatriation	(1,003	)	5,758		-
Provision for/resolution of tax audits and contingencies, net	1,286		1,329		(2,856	)
Adjustments to prior period tax liabilities	(1,284	)	(840	)	586
Provision for/adjustment to beginning of year valuation allowances	(4,882	)	(3,522	)	(88	)
Enacted tax legislation	2,067		1,879		183
Total income tax expense	$32,228		$22,123		$25,454

Schedule of Income/(Loss) From Continuing Operations

(in thousands)	2018		2017		2016
Income/(loss) before income taxes:
U.S.	$41,875		$(5,865	)	$8,556
Non-U.S.	73,372		60,573		69,710
	$115,247		$54,708		$78,266
Income tax provision
Current:
Federal	$304		$1,551		$3,728
State	4,996		1,770		176
Non-U.S.	21,557		19,282		19,979
	$26,857		$22,603		$23,883
Deferred:
Federal	$10,700		$1,881		$2,138
State	(338	)	(1,237	)	1,984
Non-U.S.	(4,991	)	(1,124	)	(2,551	)
	$5,371		$(480	)	$1,571
Total income tax expense	$32,228		$22,123		$25,454

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

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

(in thousands)	2018		2017		2016
Net effect of temporary differences	$(4,657	)	$(5,774	)	$7,214
Foreign tax credits	9,437		8,340		(6,869	)
Retirement benefits	2,360		(502	)	1,734
Net impact to operating loss carryforwards	1,046		(900	)	(603	)
Enacted changes in tax laws and rates	2,067		1,878		183
Adjustment to beginning-of-the-year valuation allowance balance for changes in circumstances	(4,882	)	(3,522	)	(88	)
Total	$5,371		$(480	)	$1,571

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:

	2018		2017		2016
U.S. federal statutory tax rate	21.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	2.9		0.4		1.2
Non-U.S. local income taxes	3.3		5.9		3.5
U.S. permanent adjustments	(0.3	)	0.5		1.5
Foreign permanent adjustments	(0.4	)	0.4		1.6
Foreign rate differential	0.2		(10.5	)	(11.3	)
Net U.S. tax on non-U.S. earnings and foreign withholdings	5.7		11.9		5.8
Provision for/resolution of tax audits and contingencies, net	1.1		2.4		(3.4	)
Research and development and other tax credits	(0.1	)	(1.5	)	(1.2	)
Provision for/adjustment to beginning of year valuation allowances	(4.2	)	(6.4	)	(0.1	)
Enacted tax legislation and rate change	1.8		3.0		-
Return to provision and other adjustments	(3.0	)	(0.7	)	(0.1	)
Effective income tax rate	28.0	%	40.4	%	32.5	%

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)	2018	2017	2018		2017
Noncurrent deferred tax assets:
Accounts receivable	$686	$557	$1,224		$1,341
Inventories	442	1,109	829		961
Deferred compensation	4,460	3,300	1,053		1,362
Depreciation and amortization	-	-	4,252		3,211
Postretirement benefits	14,759	18,286	1,667		1,464
Tax loss carryforwards	1,199	1,368	21,890		22,639
Tax credit carryforwards	30,523	41,920	1,197		1,654
Other	5,834	3,891	-		-
Noncurrent deferred tax assets
before valuation allowance	57,903	70,431	32,112		32,632
Less: valuation allowance	-	-	(8,389	)	(16,057	)
Total noncurrent deferred tax assets	57,903	70,431	23,723		16,575
Total deferred tax assets	$57,903	$70,431	$23,723		$16,575

Noncurrent deferred tax liabilities:
Unrepatriated foreign earnings	$4,028	$914	$-	$-
Depreciation and amortization	12,848	20,170	-	-
Deferred gain	3,762	4,169	-	-
Other	1,162	81	4,750	2,597
Total noncurrent deferred tax liabilities	$21,800	$25,334	$4,750	$2,597
Net deferred tax liabilities	$21,800	$25,334	$4,750	$2,597
Net deferred tax asset	$36,103	$45,097	$18,973	$13,978

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)	2018		2017		2016
Unrecognized tax benefits balance at January 1st	$4,509		$4,183		$19,606
Increase in gross amounts of tax positions related to prior years	2,008		480		62
Decrease in gross amounts of tax positions related to prior years	(358	)	(50	)	(2,129	)
Increase in gross amounts of tax positions related to current years	-		-		585
Decrease due to settlements with tax authorities	(1,626	)	(381	)	(14,029	)
Decrease due to lapse in statute of limitations	(479	)	(29	)	(163	)
Currency translation	(264	)	306		251
Unrecognized tax benefits balance at December 31	$3,790		$4,509		$4,183

Schedule of Current Income Taxes Prepaid and Deferred

As of December 31, 2018, and 2017, current income taxes prepaid and receivable consisted of the following:

(in thousands)	2018	2017
Prepaid taxes	$ 4,859	$ 4,872
Taxes receivable	2,614	1,394
Total current income taxes prepaid and receivable	$ 7,473	$ 6,266

Schedule of Non-Current Deferred Taxes and Other Liabilities

As of December 31, 2018, and 2017, noncurrent deferred taxes and other liabilities consisted of the following: 

(in thousands)	2018	2017
Deferred income taxes	$ 7,547	$ 9,573
Other liabilities	875	1,418
Total noncurrent deferred taxes and other liabilities	$ 8,422	$ 10,991