Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) from continuing operations before income taxes and equity income as reported on the Consolidated Statements of Operations consists of the following:



(In thousands)	2017		2016			2015
U.S.	$	5,694	$	(99,939	)	$	16,169
International	89,757		20,468			18,646
Total income (loss) from continuing operations before income taxes and equity income	$	95,451	$	(79,471	)	$	34,815

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense as reported on the Consolidated Statements of Operations consists of the following:



(In thousands)	2017		2016			2015
Income tax expense (benefit):
Currently payable:
U.S. federal	$	4,107	$	(4,088	)	$	408
U.S. state	372		365			546
International	21,975		18,014			23,095
Total income taxes currently payable	26,454		14,291			24,049
Deferred U.S. federal	46,470		(8,195		)	2,651
Deferred U.S. state	1,142		2,238			812
Deferred international	9,737		(1,697		)	166
Total income tax expense	$	83,803	$	6,637		$	27,678

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the normal expected statutory U.S. federal income tax expense (benefit) to the actual Income tax expense as reported on the Consolidated Statements of Operations is as follows:



(In thousands)	2017			2016			2015
U.S. federal income tax expense (benefit)	$	33,408		$	(27,815	)	$	12,185
U.S. state income taxes, net of federal income tax benefit	786			(355		)	496
U.S. domestic manufacturing deductions and credits	(1,210		)	(661		)	(2,504		)
Capital loss on sale of equity interest in Brand with no realizable tax benefit	—			16,106			—
Difference in effective tax rates on international earnings and remittances	675			2,006			5,095
Uncertain tax position contingencies and settlements	(1,517		)	(1,886		)	1,416
Changes in realization on beginning of the year deferred tax assets	2,758			1,978			923
Forward Loss Provisions in SBB Contract with no realizable tax benefits	—			15,768			—
Restructuring and impairment charges with no realizable tax benefits	—			—			8,508
U.S. non-deductible expenses	664			724			874
(Income) loss related to the Infrastructure Transaction	—			(644		)	580
Impact of U.S. tax reform	48,680			—			—
Cumulative effect of change in statutory tax rates/laws	(153		)	(388		)	340
Income from unconsolidated entities	—			2,098			62
Other, net	(288		)	(294		)	(297		)
Total income tax expense	$	83,803		$	6,637		$	27,678

Schedule of Deferred Tax Assets and Liabilities

The tax effects of the temporary differences giving rise to the Company's deferred tax assets and liabilities at December 31, 2017 and 2016 are as follows:



	2017					2016
(In thousands)	Asset			Liability		Asset			Liability
Depreciation and amortization	$	6,616		$	—	$	—		$	10,089
Expense accruals	17,690			—		23,300			—
Inventories	4,390			—		6,611			—
Provision for receivables	649			—		1,015			—
Deferred revenue	—			979		—			1,852
Operating loss carryforwards	90,193			—		80,178			—
Foreign tax credit carryforwards	27,256			—		26,347			—
Capital loss carryforwards	11,011			—		18,163			—
Pensions	47,153			—		74,506			—
Currency adjustments	7,160			—		17,597			—
Deferred financing costs	—			2,135		—			—
Post-retirement benefits	403			—		760			—
Stock based compensation	4,761			—		5,812			—
Other	7,684			—		7,206			—
Subtotal	224,966			3,114		261,495			11,941
Valuation allowance	(174,227		)	—		(146,097		)	—
Total deferred income taxes	$	50,739		$	3,114	$	115,398		$	11,941

The deferred tax asset and liability balances recognized on the Consolidated Balance Sheets at December 31, 2017 and 2016 are as follows:



(In thousands)	2017		2016
Deferred income tax assets	$	51,574	$	106,311
Other liabilities	3,949		2,854

Summary of Income Tax Contingencies

A reconciliation of the change in the unrecognized income tax benefits balance from January 1, 2015 to December 31, 2017 is as follows:



(In thousands)	Unrecognized Income Tax Benefits			Deferred Income Tax Benefits			Unrecognized Income Tax Benefits, Net of Deferred Income Tax Benefits
Balances, January 1, 2015	$	12,456		$	(112	)	$	12,344
Additions for tax positions related to the current year (includes currency translation adjustment)	(483		)	(2		)	(485		)
Additions for tax positions related to prior years (includes currency translation adjustment)	1,249			(4		)	1,245
Other reductions for tax positions related to prior years	(7,846		)	—			(7,846		)
Statutes of limitation expirations	(173		)	59			(114		)
Settlements	(42		)	15			(27		)
Balance at December 31, 2015	5,161			(44		)	5,117
Additions for tax positions related to the current year (includes currency translation adjustment)	744			(1		)	743
Additions for tax positions related to prior years (includes currency translation adjustment)	358			(14		)	344
Other reductions for tax positions related to prior years	(837		)	—			(837		)
Statutes of limitation expirations	(817		)	27			(790		)
Settlements	(27		)	2			(25		)
Balance at December 31, 2016	4,582			(30		)	4,552



(In thousands)	Unrecognized Income Tax Benefits			Deferred Income Tax Benefits			Unrecognized Income Tax Benefits, Net of Deferred Income Tax Benefits
Additions for tax positions related to the current year (includes currency translation adjustment)	658			(2		)	656
Other reductions for tax positions related to prior years	(321		)	—			(321		)
Statutes of limitation expirations	(1,296		)	1			(1,295		)
Total unrecognized income tax benefits that, if recognized, would impact the effective income tax rate at December 31, 2017	$	3,623		$	(31	)	$	3,592