Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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:

	2019		2018		2017
	(Dollars in thousands)
Domestic	$	194,822	$	215,354	$	187,521
Foreign	57,314		77,947		52,160
Total	$	252,136	$	293,301	$	239,681

Components of Provision for Income Taxes

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

 

	2019			2018			2017
	(Dollars in thousands)
Current:
Federal	$	41,949		$	17,846		$	56,834
State	13,924			3,336			7,507
Foreign	23,308			24,385			20,650
Current income tax provision	79,181			45,567			84,991
Deferred:
Federal	(11,521		)	25,887			(118,919		)
State	(5,013		)	3,382			4,413
Foreign	(4,325		)	(5,529		)	(463		)
Deferred income tax (benefit) provision	(20,859		)	23,740			(114,969		)
	$	58,322		$	69,307		$	(29,978	)

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:

	2019			2018			2017
	(Dollars in thousands)
Income taxes computed at the statutory     U.S. federal income tax rate	$	52,949		$	61,543		$	83,884
State income taxes, net of federal tax benefit	7,133			6,326			4,529
Tax liabilities (no longer required) required	(2,002		)	1,908			1,254
Valuation allowance	1,699			240			4,636
Manufacturing exemption	—			—			(5,143		)
Tax credit refunds, net	(3,493		)	(3,415		)	(2,797		)
Foreign earnings taxed at other than 21%, 21% and 35%, respectively	3,741			7,851			(3,840		)
Deferred tax rate changes	92			(1,947		)	(114,163		)
Other	(1,797		)	(3,199		)	1,662
	$	58,322		$	69,307		$	(29,978	)
Effective tax rate	23.1		%	23.6		%	(12.5		)%

Significant Components of Deferred Tax Assets and Liabilities

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

	2019			2018
	(Dollars in thousands)
Deferred tax assets:
Pension and other postretirement liabilities	$	22,632		$	18,653
Rationalization and other accrued liabilities	23,038			19,343
AMT and other credit carryforwards	3,802			3,701
Net operating loss carryforwards	34,792			31,679
Other intangible assets	5,251			3,964
Foreign currency translation	246			234
Inventory and related reserves	26,677			6,988
Long term operating lease liabilities	48,889			—
Other	5,265			5,971
Total deferred tax assets	170,592			90,533
Deferred tax liabilities:
Property, plant and equipment	(195,039		)	(185,101		)
Pension and other postretirement liabilities	(25,016		)	(14,393		)
Other intangible assets	(112,680		)	(117,168		)
Operating lease right of use assets	(46,709		)	—
Other	(6,258		)	(7,275		)
Total deferred tax liabilities	(385,702		)	(323,937		)
Valuation allowance	(15,025		)	(13,541		)
	$	(230,135	)	$	(246,945	)

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:

	2019			2018
	(Dollars in thousands)
Balance at January 1,	$	43,508		$	45,146
Decrease based upon tax positions of current year	(488		)	—
Increase based upon tax positions of a prior year	604			1,022
Decrease based upon settlements with taxing authorities	(1,316		)	(1,253		)
Decrease based upon a lapse in the statute of limitations	(4,025		)	(1,407		)
Balance at December 31,	$	38,283		$	43,508