Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of income tax expense (benefit) associated with earnings from continuing operations

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



	For the twelve months ended December 31,
	2019			2018			2017
In thousands
Current:
Federal	$	(19,432	)	$	351		$	2,841
State	1,996			104			(626		)
Foreign	585			1,191			2,341
	(16,851		)	1,646			4,556
Deferred:
Federal	719			7,145			20,531
State	277			841			(60		)
Foreign	(4		)	(373		)	187
	992			7,613			20,658
Total	$	(15,859	)	$	9,259		$	25,214

Tax effects of temporary differences that give rise to deferred tax assets and liabilities

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



	At December 31,
	2019			2018
In thousands
Deferred tax assets:
Deferred employee benefits	$	36,678		$	43,118
Tax loss and credit carryforwards	19,449			17,610
Accrued liabilities and other items	14,044			9,036
Total deferred tax assets	70,171			69,764
Deferred tax liabilities:
Property, plant and equipment	(6,410		)	(2,677		)
Intangibles	(27,147		)	(27,732		)
Other items	(226		)	(218		)
Total deferred tax liabilities	(33,783		)	(30,627		)
Net deferred tax assets before valuation allowance	36,388			39,137
Valuation allowance	(8,142		)	(8,243		)
Net deferred tax assets after valuation allowance	$	28,246		$	30,894

Schedule of effective income tax rate reconciliation

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



	For the twelve months ended December 31,
	2019			2018			2017
In thousands
Federal tax at statutory rate⁽¹⁾	$	8,523		$	5,279		$	15,722
State income taxes, net of federal benefit⁽²⁾	1,839			773			(584		)
Tax effect:
Section 199 Manufacturing deduction	—			—			(1,616		)
Research and development credits	(3,480		)	(100		)	(100		)
Impact of entity classification election	(24,813		)	—			—
Foreign derived intangible income benefit	—			(2,186		)	—
Provision to return adjustments	(1,466		)	(1,612		)	366
Foreign losses for which no tax benefit has been recorded	1,282			2,685			—
Change in valuation allowance	976			3,161			861
Equity compensation benefit	(482		)	(910		)	(851		)
Nondeductible compensation	891			347			11
Nondeductible acquisition costs	546			—			—
Impact of tax rate changes, including Tax Reform	68			193			10,032
Other, net	257			1,629			1,373
Income tax (benefit) expense	$	(15,859	)	$	9,259		$	25,214

⁽¹⁾ The federal statutory tax rate was 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017.

⁽²⁾ Included in state income taxes, net of federal benefit was the state impact of the entity classification election of $0.9 million for the year ended December 31, 2019.

Change in the liability for uncertain tax positions

The change in the liability for 2019, 2018 and 2017 is explained as follows:



	2019			2018			2017
In thousands
Balance at January 1	$	3,457		$	3,423		$	2,832
(Reductions) additions based on current year tax positions	(378		)	162			381
Changes for tax positions of prior years	135			(128		)	152
Settlements	—			—			58
Balance at December 31	$	3,214		$	3,457		$	3,423