Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income before income taxes was taxed in the following jurisdictions in each of the years ended December 31:

	2018		2017		2016
	(Dollars in thousands)
Domestic	$	215,354	$	187,521	$	212,987
Foreign	77,947		52,160		18,930
Total	$	293,301	$	239,681	$	231,917

Components of Provision for Income Taxes

The components of the provision (benefit) for income taxes were as follows:

	2018			2017			2016
	(Dollars in thousands)
Current:
Federal	$	17,846		$	56,834		$	27,805
State	3,336			7,507			(577		)
Foreign	24,385			20,650			6,327
Current income tax provision	45,567			84,991			33,555
Deferred:
Federal	25,887			(118,919		)	42,964
State	3,382			4,413			3,445
Foreign	(5,529		)	(463		)	(1,398		)
Deferred income tax provision (benefit)	23,740			(114,969		)	45,011
	$	69,307		$	(29,978	)	$	78,566

Variation of Provision for Income Taxes from Statutory U.S. Federal Income Tax Rate

The provision (benefit) for income taxes varied from income taxes computed at the statutory U.S. federal income tax rate as a result of the following:

	2018			2017			2016
	(Dollars in thousands)
Income taxes computed at the statutory     U.S. federal income tax rate	$	61,543		$	83,884		$	81,171
State income taxes, net of federal tax benefit	6,326			4,529			4,264
Tax liabilities required (no longer required)	1,908			1,254			(408		)
Valuation allowance	240			4,636			474
Manufacturing exemption	—			(5,143		)	(3,613		)
Tax credit refunds, net	(3,415		)	(2,797		)	(2,676		)
Foreign earnings taxed at other than 21%, 35% and 35%, respectively	7,851			(3,840		)	(2,334		)
Deferred tax rate changes	(1,947		)	(114,163		)	(371		)
Other	(3,199		)	1,662			2,059
	$	69,307		$	(29,978	)	$	78,566
Effective tax rate	23.6		%	(12.5		)%	33.9		%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities at December 31 were as follows:

	2018			2017
	(Dollars in thousands)
Deferred tax assets:
Pension and other postretirement liabilities	$	18,653		$	21,235
Rationalization and other accrued liabilities	19,343			17,716
AMT and other credit carryforwards	3,701			1,910
Net operating loss carryforwards	31,679			34,102
Other intangible assets	3,964			—
Foreign currency translation	234			10,170
Inventory and related reserves	6,988			9,832
Other	5,971			2,093
Total deferred tax assets	90,533			97,058
Deferred tax liabilities:
Property, plant and equipment	(185,101		)	(175,486		)
Pension and other postretirement liabilities	(14,393		)	(23,780		)
Other intangible assets	(117,168		)	(115,547		)
Other	(7,275		)	(3,961		)
Total deferred tax liabilities	(323,937		)	(318,774		)
Valuation allowance	(13,541		)	(14,089		)
	$	(246,945	)	$	(235,805	)

Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits included as other liabilities in our Consolidated Balance Sheets was as follows:

	2018			2017
	(Dollars in thousands)
Balance at January 1,	$	45,146		$	56,721
Increase based upon tax positions of current year	—			1,183
Increase (decrease) based upon tax positions of a prior year	1,022			(6,839		)
Decrease due to changes in tax rates	—			(3,408		)
Decrease based upon settlements with taxing authorities	(1,253		)	(2,191		)
Decrease based upon a lapse in the statute of limitations	(1,407		)	(320		)
Balance at December 31,	$	43,508		$	45,146