Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2017 |
Income Tax Disclosure [Abstract] |
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Income tax expenses benefit |
Income before income taxes and income tax expense (benefit) are comprised of the following: | | | | | | | | | | | | | | (Thousands) | | 2017 | | 2016 | | 2015 | Income before income taxes: | | | | | | | Domestic | | $ | 28,327 |
|
| $ | 13,934 |
| | $ | 31,748 |
| Foreign | | 8,069 |
|
| 11,381 |
| | 11,070 |
| Total income before income taxes | | $ | 36,396 |
| | $ | 25,315 |
| | $ | 42,818 |
| Income tax expense: | | | | | | | Current income tax expense: | | | | | | | Domestic | | $ | 1,912 |
|
| $ | 6,505 |
| | $ | 3,556 |
| Foreign | | 2,777 |
|
| 2,080 |
| | 2,736 |
| Total current | | $ | 4,689 |
| | $ | 8,585 |
| | $ | 6,292 |
| Deferred income tax expense (benefit): | | | | | | | Domestic | | $ | 19,935 |
|
| $ | (8,842 | ) | | $ | 4,565 |
| Foreign | | 321 |
|
| (168 | ) | | (197 | ) | Total deferred | | $ | 20,256 |
| | $ | (9,010 | ) | | $ | 4,368 |
| Total income tax expense (benefit) | | $ | 24,945 |
| | $ | (425 | ) | | $ | 10,660 |
|
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Effective income tax rate reconciliation |
A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate is as follows: | | | | | | | | | | | | | 2017 | | 2016 | | 2015 | U.S. federal statutory rate | | 35.0 | % |
| 35.0 | % | | 35.0 | % | State and local income taxes, net of federal tax effect | | 2.3 |
|
| (0.4 | ) | | 1.7 |
| Effect of excess of percentage depletion over cost depletion | | (10.0 | ) |
| (10.6 | ) | | (7.1 | ) | Manufacturing production deduction | | (0.8 | ) |
| (3.3 | ) | | (0.9 | ) | Foreign rate differential | | (3.4 | ) | | (5.9 | ) | | (4.2 | ) | Tax Cuts and Jobs Act impact | | 47.1 |
| | — |
| | — |
| Research and development tax credit | | (2.6 | ) | | (6.6 | ) | | (1.6 | ) | Foreign tax credit | | (1.1 | ) | | (28.1 | ) | | (4.8 | ) | Foreign repatriation | | 1.3 |
| | 13.7 |
| | 5.9 |
| Incremental fixed asset basis | | (3.4 | ) | | — |
| | — |
| Adjustment to unrecognized tax benefits | | 2.8 |
|
| 3.2 |
| | (1.1 | ) | Stock compensation - excess tax benefits | | (1.9 | ) |
| — |
| | — |
| Valuation allowance | | 2.4 |
| | 0.1 |
| | (0.9 | ) | Other items | | 0.8 |
|
| 1.2 |
| | 2.9 |
| Effective tax rate | | 68.5 | % | | (1.7 | )% | | 24.9 | % |
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Deferred tax assets and liabilities |
Deferred tax assets and (liabilities) recorded in the Consolidated Balance Sheets consist of the following: | | | | | | | | | | | | December 31, | (Thousands) | | 2017 | | 2016 | Asset (liability) | | | | | Post-employment benefits other than pensions | | $ | 2,787 |
| | $ | 4,808 |
| Other reserves | | 4,223 |
| | 9,333 |
| Deferred compensation | | 5,054 |
| | 10,243 |
| Environmental reserves | | 1,452 |
| | 2,231 |
| Inventory | | 4,636 |
| | 5,876 |
| Pensions | | 14,307 |
| | 23,540 |
| Alternative minimum tax credit | | — |
| | 1,390 |
| Net operating loss and credit carryforwards | | 6,374 |
| | 5,607 |
| Research and development tax credit carryforward | | 2,466 |
| | 627 |
| Foreign tax credit carryforward | | 9,481 |
| | 4,545 |
| Subtotal | | 50,780 |
| | 68,200 |
| Valuation allowance | | (16,246 | ) | | (3,990 | ) | Total deferred tax assets | | 34,534 |
| | 64,210 |
| Depreciation | | (10,250 | ) | | (13,064 | ) | Amortization | | (2,900 | ) | | (5,073 | ) | Capitalized interest expense | | (112 | ) | | (242 | ) | Mine development | | (3,621 | ) | | (6,683 | ) | Derivative instruments and hedging activities | | (817 | ) | | (13 | ) | Total deferred tax liabilities | | (17,700 | ) | | (25,075 | ) | Net deferred tax asset | | $ | 16,834 |
| | $ | 39,135 |
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Reconciliation of unrecognized tax benefits |
A reconciliation of the Company’s unrecognized tax benefits for the year-to-date periods ending December 31, 2017 and 2016 is as follows: | | | | | | | | | | (Thousands) | | 2017 | | 2016 | Balance at January 1 | | $ | 2,048 |
| | $ | 1,285 |
| Additions to tax provisions related to the current year | | 163 |
| | 35 |
| Additions to tax positions related to prior years | | 1,210 |
| | 878 |
| Reduction to tax positions related to prior years | | (121 | ) | | — |
| Lapses on statutes of limitations | | (356 | ) | | (150 | ) | Balance at December 31 | | $ | 2,944 |
| | $ | 2,048 |
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