Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Provision for Taxes on Income and Other Related Income Before Taxes

The provisions for taxes on income and the related income before taxes for the years ended December 31, 2016, 2015 and 2014, were as follows:

(In thousands)	2016			2015			2014
Taxes on Income
Federal
Current	$	18,811		$	7,697		$	3,362
Deferred		(3,192	)		3,890			4,338
State
Current		2,273			1,559			782
Deferred		(1,171	)		(225	)		643
Foreign
Current		14,960			14,562			9,004
Deferred		(4,063	)		(664	)		325
Total	$	27,618		$	26,819		$	18,454
Income before Taxes
Domestic	$	64,675		$	48,721		$	34,091
Foreign		49,141			54,135			41,444
Total	$	113,816		$	102,856		$	75,535

Summary of Variations Between the Effective and Statutory U.S. Federal Income Tax Rates

The variations between the effective and statutory U.S. federal income tax rates are summarized as follows:

(In thousands)	2016 Amount			%			2015 Amount			%			2014 Amount			%
Federal income tax provision at statutory tax rate	$	39,836			35.0		$	36,000			35.0		$	26,437			35.0
State tax provision on income less applicable federal tax benefit		716			0.6			867			0.8			926			1.2
Foreign income taxed at different rates		(6,325	)		(5.6	)		(5,060	)		(4.9	)		(5,416	)		(7.2	)
Unrecognized tax benefits		23			0.0			1,536			1.5			241			0.3
Domestic production activities deduction		(1,633	)		(1.4	)		(884	)		(0.9	)		(312	)		(0.4	)
Nontaxable foreign interest income		(2,030	)		(1.8	)		(2,106	)		(2.0	)		(2,435	)		(3.2	)
Stock based compensation, excess tax benefits^(a⁾		(1,878	)		(1.7	)		—			—			—			—
U.S. tax credits		(1,100	)		(1.0	)		(3,465	)		(3.4	)		(1,086	)		(1.4	)
Non-deductible expenses and other items, net^(b⁾		9			0.2			(69	)		0.0			99			0.1
Total income tax provision	$	27,618			24.3		$	26,819			26.1		$	18,454			24.4

(a)

Excess tax benefits related to employee share-based payment transactions recognized in 2016 resulting from early adoption of ASU No. 2016-9, as described in Note 1. There is no effect for 2014 and 2015 because the recognition of excess tax benefits in the tax provision is to be done only on a prospective basis, beginning with the year of adopting the new guidance.

(b)	Certain 2014 amounts have been reclassified to conform to the current year presentation.

Schedule Showing Tax Effects of Significant Temporary Differences Representing Deferred Tax Assets and Liabilities

At December 31, 2016 and 2015, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows:

(In thousands)	2016			2015
Deferred Tax Liabilities:
Depreciation	$	(75,973	)	$	(69,975	)
Unrealized foreign exchange loss		(631	)		(614	)
Other		(2,756	)		(950	)
	$	(79,360	)	$	(71,539	)
Deferred Tax Assets:
Pensions	$	12,077		$	16,698
Deferred revenue		940			1,377
Other accruals and reserves		20,590			17,171
Inventories		1,815			1,833
Legal and environmental accruals		11,503			9,303
Deferred compensation		24,485			17,828
Bad debt and rebate reserves		4,195			3,685
Subsidiaries net operating loss carryforwards		1,201			602
Tax credit carryforwards		1,599			1,120
	$	78,405		$	69,617
Valuation Allowance	$	(1,815	)	$	(1,443	)
Net Deferred Tax Liabilities	$	(2,770	)	$	(3,365	)
Reconciliation to Consolidated Balance Sheet:
Non-current deferred tax assets (in other non-current assets)		9,727			6,090
Non-current deferred tax liabilities		(12,497	)		(9,455	)
Net Deferred Tax Liabilities	$	(2,770	)	$	(3,365	)

Schedule of Reconciliations of Unrecognized Tax Benefits

Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2016, 2015 and 2014:

(In thousands)	2016			2015			2014
Unrecognized tax benefits, opening balance	$	1,958		$	464		$	240
Gross increases – tax positions in prior period		—			1,526			—
Gross increases – current period tax positions		35			29			261
Foreign currency translation		(43	)		(37	)		(13	)
Lapse of statute of limitations		(19	)		(24	)		(24	)
Unrecognized tax benefits, ending balance	$	1,931		$	1,958		$	464