Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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:



	2018		2017		2016
U.S. federal statutory income tax rate	21.0	%	35.0	%	35.0	%
State taxes (net of federal benefit)	—		0.1		0.4
Transition Tax	(0.3	)	45.0		—
U.S. Corporate Tax Rate change	(0.4	)	2.1		—
Indefinite Reinvestment Assertion	(0.6	)	3.5		—
Foreign operations taxed at different rates	1.3		(11.5	)	(10.9	)
Foreign losses without tax benefit	1.5		1.5		0.7
Repatriation from current year foreign earnings	—		—		1.6
GILTI	1.2		—		—
Tax Holidays	(1.7	)	(0.8	)	(1.2	)
Stock awards excess tax benefit	(0.8	)	(1.2	)	(1.2	)
Swiss Legal Entity Reduction	—		(3.4	)	—
Reduction of Valuation Allowances	(2.5	)	—		—
Audit Settlements	—		(2.7	)	—
Other	1.2		2.0		1.3
Consolidated effective income tax rate	19.9	%	69.6	%	25.7	%

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:



	2018			2017			2016
Income from continuing operations before income taxes:
U.S.	$	(10,719	)	$	3,082		$	34,129
International	218,214			192,617			148,492
Income from continuing operations before income taxes	$	207,495		$	195,699		$	182,621
Income tax provision:
Current:
U.S. – federal	$	3,110		$	77,799		$	7,215
U.S. – state	(623		)	1,762			755
International	57,871			48,032			41,516
	60,358			127,593			49,486
Deferred:
U.S. – federal	$	(2,206	)	$	9,596		$	6,091
U.S. – state	(826		)	819			1,060
International	(16,017		)	(1,724		)	(9,617		)
	(19,049		)	8,691			(2,466		)
Income taxes	$	41,309		$	136,284		$	47,020

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:



	2018			2017
Deferred tax assets:
Pension	$	19,025		$	13,255
Tax loss carryforwards	11,516			16,078
Inventory valuation	11,576			10,568
Other postretirement/postemployment costs	8,372			9,440
Accrued Compensation	9,384			5,743
Other	3,349			4,018
Valuation allowance	(4,366		)	(10,223		)
Total deferred tax assets	58,856			48,879
Deferred tax liabilities:
Depreciation and amortization	(122,636		)	(82,422		)
Goodwill	(9,597		)	(9,440		)
Other	(12,708		)	(18,361		)
Total deferred tax liabilities	(144,941		)	(110,223		)
Net deferred tax liabilities	$	(86,085	)	$	(61,344	)

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, 2018 and 2017 are presented as follows:



	2018			2017
Non-current deferred tax assets	$	20,474		$	12,161
Non-current deferred tax liabilities	(106,559		)	(73,505		)
Net deferred tax liabilities	$	(86,085	)	$	(61,344	)

Summary of Income Tax Contingencies

A reconciliation of the unrecognized tax benefits for 2018, 2017 and 2016 follows:



	2018			2017			2016
Balance at January 1	$	9,209		$	13,320		$	10,634
Increase (decrease) in unrecognized tax benefits due to:
Tax positions taken during prior periods	649			1,141			—
Tax positions taken during the current period	367			778			117
Acquisition	2,516			—			2,569
Settlements	—			(4,162		)	—
Lapse of the applicable statute of limitations	(1,290		)	(1,868		)	—
Foreign Currency Translation	143			—			—
Balance at December 31	$	11,594		$	9,209		$	13,320