Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of Income (Loss) before Income Taxes, Domestic and Foreign

The provisions for income taxes were calculated based on the following components of income (loss) before income taxes:

Year ended December 31, (dollars in thousands)	2017			2016			2015
United States	$	(65,224	)	$	29,742		$	27,146
Non-U.S.	(12,346		)	(1,958		)	971
Total income before income taxes	$	(77,570	)	$	27,784		$	28,117

Current and Deferred Provisions (Benefit) for Income Taxes

The current and deferred provisions (benefit) for income taxes were:

Year ended December 31, (dollars in thousands)	2017			2016			2015
Current:
U.S. federal	$	(183	)	$	470		$	300
Non-U.S.	4,517			7,625			9,142
U.S. state and local	834			201			162
Total current income tax provision (benefit)	5,168			8,296			9,604
Deferred:
U.S. federal	9,950			9,981			(44,068		)
Non-U.S.	1,190			334			(3,078		)
U.S. state and local	(510		)	(900		)	(674		)
Total deferred income tax provision (benefit)	10,630			9,415			(47,820		)
Total:
U.S. federal	9,767			10,451			(43,768		)
Non-U.S.	5,707			7,959			6,064
U.S. state and local	324			(699		)	(512		)
Total income tax provision (benefit)	$	15,798		$	17,711		$	(38,216	)

Components of Deferred Income Tax Assets and Liabilities

The significant components of our deferred income tax assets and liabilities are as follows:

December 31, (dollars in thousands)	2017			2016
Deferred income tax assets:
Pension	$	8,108		$	11,799
Non-pension post-retirement benefits	13,385			22,810
Other accrued liabilities	13,213			19,244
Receivables	2,118			2,756
Net operating loss and charitable contribution carry forwards	16,599			16,861
Tax credits	13,288			11,502
Total deferred income tax assets	66,711			84,972
Valuation allowance	(19,076		)	(13,773		)
Net deferred income tax assets	47,635			71,199
Deferred income tax liabilities:
Property, plant and equipment	18,246			23,921
Inventories	1,639			3,866
Intangibles and other	4,708			5,255
Total deferred income tax liabilities	24,593			33,042
Net deferred income tax asset	$	23,042		$	38,157

Balance Sheet Locations of Deferred Tax Assets and Liabilities

The net deferred income tax assets and liabilities were included in the Consolidated Balance Sheets as follows:

December 31, (dollars in thousands)	2017			2016
Non-current deferred income tax asset	$	24,892		$	40,016
Non-current deferred income tax liability	(1,850		)	(1,859		)
Net deferred income tax asset	$	23,042		$	38,157

Summary of Operating Loss Carryforwards

A summary of the deferred tax assets for net operating loss carry forwards is as follows:

December 31, (dollars in thousands)	2017		2016
Deferred income tax asset	$	16,599	$	16,861
Comprised of cumulative net losses from:
Netherlands	$	40,487	$	24,811
Mexico	$	1,700	$	—
China	$	1,155	$	825
Portugal	$	—	$	629
U.S. federal	$	15,578	$	23,019
U.S. state and local	$	41,812	$	58,551

Summary of Tax Credit Carryforwards

A summary of the deferred income tax assets related to tax credits is as follows:

December 31, (dollars in thousands)	2017		2016
Netherlands foreign tax credits	$	9,082	$	7,695
U.S. general business credits	2,885		2,628
U.S. alternative minimum tax credits	1,321		1,179
Total	$	13,288	$	11,502

Reconciliation of Statutory to Effective Income Tax Rate

Reconciliation from the statutory U.S. federal income tax rate to the consolidated effective income tax rate was as follows:

Year ended December 31,	2017			2016			2015
Statutory U.S. federal income tax rate	35.0		%	35.0		%	35.0		%
Increase (decrease) in rate due to:
Non-U.S. income tax differential	1.2			(2.1	)		(0.9	)
U.S. state and local income taxes, net of related U.S. federal income taxes	0.1			(1.3	)		(2.0	)
U.S. federal credits	0.3			(2.2	)		—
Permanent adjustments	0.6			3.8			7.5
Foreign withholding taxes	(2.0	)		5.7			4.7
Valuation allowance	(4.4	)		11.1			(174.8	)
Unrecognized tax benefits	(3.9	)		10.0			(0.3	)
Impact of foreign exchange	(1.6	)		3.4			(19.8	)
Tax effect of intercompany capitalization	—			—			11.7
Impact of legislative changes	(8.7	)		—			—
Goodwill impairment	(36.0	)		—			—
Other	(1.0	)		0.3			3.0
Consolidated effective income tax rate	(20.4	)	%	63.7		%	(135.9	)	%

Change in Unrecognized Tax Benefits

A reconciliation of the beginning and ending gross unrecognized tax benefits, excluding interest and penalties, is as follows:

(dollars in thousands)	2017			2016			2015
Beginning balance	$	3,521		$	431		$	378
Additions based on tax positions related to the current year	435			382			293
Additions for tax positions of prior years	1,735			3,001			—
Reductions for tax positions of prior years	(468		)	(293		)	—
Changes due to lapse of statute of limitations	279			—			(240		)
Reductions due to settlements with tax authorities	(495		)	—			—
Ending balance	$	5,007		$	3,521		$	431

Other Unrecognized Tax Benefits Disclosures

We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. Other disclosures relating to unrecognized tax benefits are as follows:

December 31, (dollars in thousands)	2017			2016		2015
Amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate	$	4,107		$	3,414	$	378
Interest, net of tax benefit, accrued in the Consolidated Balance Sheets	$	572		$	92	$	28
Penalties, accrued in the Consolidated Balance Sheets	$	38		$	181	$	—
Interest expense (benefit) recognized in the Consolidated Statements of Operations	$	506		$	64	$	(146	)
Penalties expense (benefit) recognized in the Consolidated Statements of Operations	$	(67	)	$	181	$	—

Tax Years Subject to Income Tax Examination

As of December 31, 2017, the tax years that remained subject to examination by major tax jurisdictions were as follows:

Jurisdiction	Open Years
Canada	2014	–	2017
China	2007	–	2017
Mexico (excluding 2011 which is closed)	2010	–	2017
Netherlands	2016	–	2017
Portugal	2014	–	2017
United States (excluding 2013 which is closed)	2011	–	2017