Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The components of income tax expense (benefit) are as follows:

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are presented below:



	At December 31,
	2017			2016
In thousands
Deferred tax assets:
Deferred employee benefits	$	46,539		$	82,836
Inventories	5,528			9,694
Tax loss and credit carryforwards	20,813			19,216
Accrued liabilities and other items	7,031			12,433
Total deferred tax assets	79,911			124,179
Deferred tax liabilities:
Property, plant and equipment	(10,756		)	(15,653		)
Intangibles	(40,258		)	(48,785		)
Other items	(4,020		)	(3,100		)
Total deferred tax liabilities	(55,034		)	(67,538		)
Net deferred tax assets before valuation allowance	24,877			56,641
Valuation allowance	(5,298		)	(4,143		)
Net deferred tax assets after valuation allowance	$	19,579		$	52,498

The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows:



	For the year ended December 31,
	2017			2016			2015
In thousands
Federal tax at 35% statutory rate	$	33,032		$	31,396		$	30,796
State income taxes, net of federal benefit	917			999			(1,517		)
Tax effect of:
Section 199 Manufacturing deduction	(1,616		)	(2,153		)	(2,275		)
Impact of tax rate changes, including Tax Reform	10,032			613			(224		)
Other, net	2,187			(5		)	771
Income tax expense	$	44,552		$	30,850		$	27,551

The change in the liability for 2017, 2016 and 2015 is explained as follows:



	2017		2016			2015
In thousands
Balance at January 1	$	2,832	$	2,996		$	2,441
Additions based on current year tax positions	381		211			117
Changes for tax positions of prior years	152		(96		)	(160		)
Settlements	58		(155		)	19
Additions due to acquired business	—		—			954
Reductions due to lapses in statutes of limitation	—		(124		)	(375		)
Balance at December 31	$	3,423	$	2,832		$	2,996