Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The provision for income taxes for continuing operations was as follows:

(In thousands)	2018			2017			2016
Currently (receivable) payable:
Federal ⁽¹⁾	$	(9,071	)	$	15,513		$	12,145
State		205			642			2,631
Foreign		23,187			25,254			19,168
		14,321			41,409			33,944
Deferred expense (benefit):
Federal		3,977			18,458			7,630
State		3,164			215			1,656
Foreign		2,703			(1,259	)		1,142
		9,844			17,414			10,428
Income taxes	$	24,165		$	58,823		$	44,372

(1)

In 2018 and 2017, this amount includes $(3.9) million and $7.4 million, respectively, of income tax (benefit) expense related to the one-time transition tax on earnings of foreign subsidiaries enacted by the 2017 Tax Legislation (See discussion below). There was no liability for this amount recorded as of December 31, 2018. As of December 31, 2017, $5.1 million of this amount was reported in Other liabilities on the Consolidated Balance Sheet.

Tax Effects of Temporary Differences - Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following:

(in thousands)	2018			2017
Deferred tax assets:
Benefit plans	$	6,788		$	8,440
Liabilities and reserves		12,563			11,141
Operating loss and credit carryovers		65,392			40,164
Other		1,404			1,007
Gross deferred tax assets		86,147			60,752
Valuation allowance		(50,702	)		(38,366	)
Deferred tax assets		35,445			22,386
Deferred tax liabilities:
Property, plant and equipment		(29,372	)		(12,458	)
Goodwill		(21,372	)		(20,345	)
Other		(4,488	)		(422	)
Deferred tax liabilities		(55,232	)		(33,225	)
Net deferred tax liabilities	$	(19,787	)	$	(10,839	)

Effective Income Tax Rate Reconciliation

The effective tax rate for continuing operations differed from the statutory federal income tax rate as described below:

	2018			2017			2016
Taxes at statutory rate		21.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		1.1			0.3			1.4
Tax credits		(1.5	)		(1.1	)		(1.8	)
Taxes on foreign earnings		(0.4	)		0.2			(4.4	)
Global Intangible Low-Taxed Income		0.6			-			-
Resolution of prior years’ tax matters		(0.3	)		0.1			-
U.S. manufacturing deduction		-			(1.4	)		(2.0	)
Valuation allowance adjustments		0.4			-			(0.3	)
2017 Tax Legislation		(3.7	)		12.4			-
Loss on foreign branch remittances		-			(5.2	)		-
U.S. tax accounting method changes		(2.9	)		-			-
Other, net		(1.0	)		(0.7	)		(1.4	)
Effective tax rate		13.3	%		39.6	%		26.5	%

Earnings Before Income Taxes

Earnings from continuing operations before income taxes were as follows:

(In thousands)	2018		2017		2016

United States	$	80,641	$	88,479	$	96,963
Foreign		100,884		59,944		70,322
Total	$	181,525	$	148,423	$	167,285

Reconciliation of Change in Liability for Unrecognized Tax Benefits

A reconciliation of the change in the liability for unrecognized tax benefits for 2018 and 2017 is as follows:

(in thousands)	2018			2017
Balance at beginning of year	$	6,276		$	4,947
Increases for tax positions taken in the current year		834			871
Increases for tax positions taken in prior years		271			553
Decreases related to settlements with tax authorities		(177	)		(76	)
Decreases as a result of lapse of the applicable statutes of limitations		(920	)		(607	)
Foreign currency exchange rate changes		(258	)		588
Balance at the end of year	$	6,026		$	6,276