Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of income (loss) from continuing operations before income taxes

Income (loss) from continuing operations before income taxes was as follows for the years ended (in thousands):



	2016		2015
Domestic	$	74,288	$	(17,196	)
Foreign	816		2,128
	$	75,104	$	(15,068	)

Schedule of components of income tax expense (benefit) on income (loss) from continuing operations

Income tax expense on income (loss) from continuing operations consisted of the following for the years ended (in thousands):



	2016			2015
Current tax expense:
Federal	$	—		$	—
Foreign	1,230			592
State	1,748			1,058
	2,978			1,650
Deferred tax expense:
Federal	1,165			1,109
Foreign	(279		)	270
State	394			1,364
	1,280			2,743
Income tax expense	$	4,258		$	4,393

Schedule of effective income tax rate reconciliation

A reconciliation of the expected tax benefit based on the federal statutory tax rate to the Company’s actual income tax expense is summarized as follows for the years ended (in thousands):



	2016			2015
Expected tax expense (benefit) at federal statutory income tax rate	$	26,286		$	(5,274	)
State and local income tax expense (benefit)	5,917			(3,295		)
State net operating loss adjustments	1,273			2,259
Change in valuation allowance	(35,659		)	5,914
Change in contingency reserves	(132		)	(118		)
Non-U.S. tax rate differences	665			116
Non-deductible expenses	4,325			3,094
Change in state tax rates	99			802
Other	1,484			895
Income tax expense	$	4,258		$	4,393

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities of the Company, were as follows (in thousands):



	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	81,949		$	128,232
Compensation and benefit related accruals	50,261			50,255
Alternative minimum tax credit carryforwards	7,307			7,450
Accounts receivable	1,004			2,679
Inventory	2,083			2,816
Restructuring accruals	8,158			8,810
Accrued tax and interest	2,015			1,882
Other	6,292			4,022
Valuation allowance	(129,159		)	(163,225		)
Total deferred tax assets	29,910			42,921

Deferred tax liabilities:
Property, plant and equipment	(19,771		)	(27,850		)
Goodwill and other intangible assets	(48,744		)	(52,438		)
Other	(630		)	(553		)
Total deferred tax liabilities	(69,145		)	(80,841		)
Net deferred tax liability	$	(39,235	)	$	(37,920	)

The net deferred tax liability included the following (in thousands):



	2016			2015
Current deferred tax asset (included in prepaid and other current assets)	$	3,382		$	4,116
Long-term deferred tax liability (included in other liabilities)	(42,617		)	(42,036		)
Total	$	(39,235	)	$	(37,920	)

Schedule of changes of the unrecognized tax benefits

The Company’s unrecognized tax benefit activity for the years ended 2016, 2015 and 2014 was as follows (in thousands):



Unrecognized tax benefit – As of year end 2014	$	2,226
Gross decreases – tax positions in prior period	—
Gross decreases – expiration of applicable statute of limitations	—
Unrecognized tax benefit – As of year end 2015	2,226
Gross decreases – tax positions in prior period	—
Gross decreases – expiration of applicable statute of limitations	—
Unrecognized tax benefit – As of year end 2016	$	2,226