Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017, 2016 and 2015, were as follows:

(In thousands)	2017			2016			2015
Taxes on Income
Federal
Current	$	32,299		$	18,811		$	7,697
Deferred		(1,744	)		(3,192	)		3,890
State
Current		1,764			2,273			1,559
Deferred		192			(1,171	)		(225	)
Foreign
Current		13,077			14,960			14,562
Deferred		2,102			(4,063	)		(664	)
Total	$	47,690		$	27,618		$	26,819
Income before Taxes
Domestic	$	72,662		$	64,675		$	48,721
Foreign		66,575			49,141			54,135
Total	$	139,237		$	113,816		$	102,856

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)	2017 Amount			%			2016 Amount			%			2015 Amount			%
Federal income tax provision at statutory tax rate	$	48,733			35.0		$	39,836			35.0		$	36,000			35.0
State tax provision on income less applicable federal tax benefit		1,271			0.9			716			0.6			867			0.8
Foreign income taxed at different rates		(8,075	)		(5.8	)		(6,325	)		(5.6	)		(5,060	)		(4.9	)
Repatriation of foreign earnings		(1,054	)		(0.8	)		14			—			21			—
Unrecognized tax benefits		(47	)		0.0			23			—			1,536			1.5
Domestic production activities deduction		(1,339	)		(1.0	)		(1,633	)		(1.4	)		(884	)		(0.9	)
Nontaxable foreign interest income		(2,073	)		(1.5	)		(2,030	)		(1.8	)		(2,106	)		(2.0	)
U.S. tax reform, net impact^(a)		14,807			10.7			—			—			—			—
Change in accounting method for depreciation		(893	)		(0.6	)		—			—			—			—
Stock based compensation, excess tax benefits^(b)		(2,254	)		(1.6	)		(1,878	)		(1.7	)		—			—
U.S. tax credits		(1,204	)		(0.9	)		(1,100	)		(1.0	)		(3,465	)		(3.4	)
Non-deductible expenses and other items, net ^(c)		(182	)		(0.1	)		(5	)		0.2			(90	)		—
Total income tax provision	$	47,690			34.3		$	27,618			24.3		$	26,819			26.1

(a)	Does not include state tax impacts, which are included in state tax provision on income less applicable federal tax benefit.

(b)

Excess tax benefits related to employee share-based payment transactions recognized in 2017 and 2016 resulting from the adoption of ASU No. 2016-9. There is no effect for 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, which was 2016.

(c)	Certain 2016 and 2015 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, 2017 and 2016, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows:

(In thousands)	2017			2016
Deferred Tax Liabilities:
Depreciation	$	(51,244	)	$	(75,973	)
Unrealized foreign exchange loss		(734	)		(631	)
Other		(2,066	)		(2,756	)
	$	(54,044	)	$	(79,360	)
Deferred Tax Assets:
Pensions	$	7,884		$	12,077
Deferred revenue		232			940
Other accruals and reserves		13,660			20,590
Inventories		1,182			1,815
Legal and environmental accruals		7,243			11,503
Deferred compensation		15,402			24,485
Bad debt and rebate reserves		2,865			4,195
Non-U.S. subsidiaries net operating loss carryforwards		2,657			1,201
Tax credit carryforwards		1,851			1,599
	$	52,976		$	78,405
Valuation Allowance	$	(2,255	)	$	(1,815	)
Net Deferred Tax Liabilities	$	(3,323	)	$	(2,770	)
Reconciliation to Consolidated Balance Sheet:
Non-current deferred tax assets (in other non-current assets)		7,639			9,727
Non-current deferred tax liabilities		(10,962	)		(12,497	)
Net Deferred Tax (Liabilities) Assets	$	(3,323	)	$	(2,770	)

Schedule of Reconciliations of Unrecognized Tax Benefits

Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2017, 2016 and 2015:

(In thousands)	2017			2016			2015
Unrecognized tax benefits, opening balance	$	1,931		$	1,958		$	464
Gross increases – tax positions in prior period		—			—			1,526
Gross increases – current period tax positions		20			35			29
Foreign currency translation		69			(43	)		(37	)
Lapse of statute of limitations		(93	)		(19	)		(24	)
Unrecognized tax benefits, ending balance	$	1,927		$	1,931		$	1,958