Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate from continuing operations follows:



	2016		2015		2014
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes (net of federal benefit)	0.4		0.2		0.5
Foreign losses without tax benefit	0.7		1.1		1.1
Foreign operations taxed at lower rates	(10.9	)	(12.9	)	(9.9	)
Repatriation from current year foreign earnings	1.6		4.3		2.6
Tax withholding refund	—		(1.9	)	—
Tax Holidays	(1.2	)	(3.2	)	(2.7	)
Stock awards excess tax benefit	(1.2	)	—		—
Other	1.3		0.6		1.0
Consolidated effective income tax rate	25.7	%	23.2	%	27.6	%

Schedule of Income before Income Tax, Domestic and Foreign and Components of Income Tax Expense

The components of Income from continuing operations before income taxes and Income taxes follow:



	2016			2015			2014
Income from continuing operations before income taxes:
U.S.	$	34,129		$	11,525		$	33,070
International	148,492			146,421			133,430
Income from continuing operations before income taxes	$	182,621		$	157,946		$	166,500
Income tax provision:
Current:
U.S. – federal	$	7,215		$	(210	)	$	22,673
U.S. – state	755			2,019			1,236
International	41,516			32,217			35,954
	49,486			34,026			59,863
Deferred:
U.S. – federal	$	6,091		$	7,670		$	(6,737	)
U.S. – state	1,060			(1,137		)	1,279
International	(9,617		)	(3,993		)	(8,446		)
	(2,466		)	2,540			(13,904		)
Income taxes	$	47,020		$	36,566		$	45,959

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31 consist of the tax effects of temporary differences related to the following:



	2016			2015
Deferred tax assets:
Pension	$	27,410		$	25,331
Tax loss carryforwards	16,686			15,330
Inventory valuation	15,518			15,938
Other postretirement/postemployment costs	14,071			15,753
Accrued Compensation	10,121			10,242
Other	6,489			5,880
Valuation allowance	(14,957		)	(14,401		)
Total deferred tax assets	75,338			74,073
Deferred tax liabilities:
Depreciation and amortization	(89,198		)	(81,158		)
Goodwill	(14,871		)	(14,545		)
Other	(12,282		)	(16,313		)
Total deferred tax liabilities	(116,351		)	(112,016		)
Net deferred tax liabilities	$	(41,013	)	$	(37,943	)

In the first quarter of 2016, the Company prospectively adopted the amended guidance related to the balance sheet classification of deferred income taxes. The amended guidance removed the requirement to separate and classify deferred income tax liabilities and assets into current and non-current amounts and required an entity to now classify all deferred tax liabilities and assets as non-current. The provisions of the amended guidance were adopted on a prospective basis during the first quarter of 2016. Amounts related to deferred taxes in the balance sheets as of December 31, 2016 and 2015 are presented as follows:



	2016			2015
Current deferred tax assets	$	—		$	24,825
Non-current deferred tax assets	25,433			1,139
Current deferred tax liabilities (included in accrued liabilities)	—			(1,543		)
Non-current deferred tax liabilities	(66,446		)	(62,364		)
Net deferred tax liabilities	$	(41,013	)	$	(37,943	)

Summary of Income Tax Contingencies

A reconciliation of the unrecognized tax benefits for 2016, 2015 and 2014 follows:



	2016		2015			2014
Balance at January 1	$	10,634	$	8,560		$	8,027
Increase (decrease) in unrecognized tax benefits due to:
Tax positions taken during prior periods	—		1,691			533
Tax positions taken during the current period	117		—			—
Acquisition	2,569		598			—
Lapse of the applicable statute of limitations	—		(215		)	—
Balance at December 31	$	13,320	$	10,634		$	8,560