Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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)	2018		2017		2016
U.S.	$	69,125	$	5,694	$	(99,939	)
International	88,129		89,757		20,468
Total income (loss) from continuing operations before income taxes and equity income	$	157,254	$	95,451	$	(79,471	)

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)	2018			2017		2016
Income tax expense (benefit):
Currently payable:
U.S. federal	$	281		$	4,107	$	(4,088	)
U.S. state	1,127			372		365
International	18,014			21,975		18,014
Total income taxes currently payable	19,422			26,454		14,291
Deferred U.S. federal	7,164			46,470		(8,195		)
Deferred U.S. state	(11,045		)	1,142		2,238
Deferred international	(2,642		)	9,737		(1,697		)
Total income tax expense	$	12,899		$	83,803	$	6,637

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)	2018			2017			2016
U.S. federal income tax expense (benefit)	$	33,023		$	33,408		$	(27,815	)
U.S. state income taxes, net of federal income tax benefit	1,614			786			(355		)
U.S. domestic deductions and credits	(6,145		)	(1,210		)	(661		)
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	5,399			675			2,006
Uncertain tax position contingencies and settlements	(1,180		)	(1,517		)	(1,886		)
Changes in realization on beginning of the year deferred tax assets	(6,937		)	2,758			1,978
Forward Loss Provisions in SBB Contract with no realizable tax benefits	—			—			15,768
Global Intangible Low-Taxed Income	400			—			—
U.S. non-deductible expenses	2,277			664			724
Income related to the Infrastructure Transaction	—			—			(644		)
Impact of U.S. tax reform	(15,409		)	48,680			—
Cumulative effect of change in statutory tax rates/laws	—			(153		)	(388		)
Income from unconsolidated entities	—			—			2,098
Other, net	(143		)	(288		)	(294		)
Total income tax expense	$	12,899		$	83,803		$	6,637

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of the temporary differences giving rise to the Company's deferred tax assets and liabilities at December 31, 2018 and 2017 are as follows:



	2018					2017
(In thousands)	Asset			Liability		Asset			Liability
Depreciation and amortization	$	—		$	8,681	$	6,616		$	—
Expense accruals	18,827			—		17,690			—
Inventories	3,071			—		4,390			—
Provision for receivables	690			—		649			—
Deferred revenue	—			3,122		—			979
Operating loss carryforwards	83,168			—		90,193			—
Foreign tax credit carryforwards	25,814			—		27,256			—
Capital loss carryforwards	9,759			—		11,011			—
Pensions	40,442			—		47,153			—
Currency adjustments	3,795			—		7,160			—
Deferred financing costs	—			2,227		—			2,135
Post-retirement benefits	471			—		403			—
Stock based compensation	5,832			—		4,761			—
Other	5,886			—		7,684			—
Subtotal	197,755			14,030		224,966			3,114
Valuation allowance	(138,862		)	—		(174,227		)	—
Total deferred income taxes	$	58,893		$	14,030	$	50,739		$	3,114

The deferred tax asset and liability balances recognized on the Consolidated Balance Sheets at December 31, 2018 and 2017 are as follows:



(In thousands)	2018		2017
Deferred income tax assets	$	49,114	$	51,574
Other liabilities	4,251		3,949

Summary of Income Tax Contingencies

A reconciliation of the change in the unrecognized income tax benefits balance from January 1, 2016 to December 31, 2018 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, 2016	$	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
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		)
Balance at December 31, 2017	3,623			(31		)	3,592
Additions for tax positions related to the current year (includes currency translation adjustment)	196			(1		)	195
Statutes of limitation expirations	(1,397		)	6			(1,391		)
Total unrecognized income tax benefits that, if recognized, would impact the effective income tax rate at December 31, 2018	$	2,422		$	(26	)	$	2,396