Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The Company's income (loss) before income taxes and income tax expense (benefit), each by tax jurisdiction, consists of the following (dollars in thousands):



	Year ended December 31,
	2018		2017			2016
Income (loss) before income taxes:
Domestic	$	75,830	$	50,760		$	(69,850	)
Foreign	30,150		15,450			11,620
Total income (loss) before income taxes	$	105,980	$	66,210		$	(58,230	)
Current income tax expense:
Federal	$	6,770	$	12,800		$	7,560
State and local	2,440		1,770			1,920
Foreign	7,070		5,420			4,250
Total current income tax expense	16,280		19,990			13,730
Deferred income tax expense (benefit):
Federal	4,540		15,180			(28,180		)
State and local	1,310		1,280			(2,550		)
Foreign	550		(1,200		)	(1,430		)
Total deferred income tax expense (benefit)	6,400		15,260			(32,160		)
Income tax expense (benefit)	$	22,680	$	35,250		$	(18,430	)

Schedule of Deferred Tax Assets and Liabilities

The components of deferred taxes are as follows (dollars in thousands):



	December 31, 2018			December 31, 2017
Deferred tax assets:
Accounts receivable	$	310		$	1,000
Inventories	1,900			5,230
Accrued liabilities and other long-term liabilities	7,220			20,350
Tax loss and credit carryforwards	6,990			7,290
Gross deferred tax asset	16,420			33,870
Valuation allowances	(5,520		)	(6,400		)
Net deferred tax asset	10,900			27,470
Deferred tax liabilities:
Property and equipment	(8,770		)	(16,380		)
Goodwill and other intangible assets	(4,940		)	(5,350		)
Investment in foreign affiliates, including withholding tax	(1,050		)	(740		)
Other, principally deferred income	(620		)	(1,550		)
Gross deferred tax liability	(15,380		)	(24,020		)
Net deferred tax asset (liability)	$	(4,480	)	$	3,450

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of income tax expense (benefit) computed at the U.S. federal statutory rate to income tax expense (benefit) allocated to income (loss) before income taxes (dollars in thousands):



	Year ended December 31,
	2018			2017			2016
U.S. federal statutory rate	21		%	35		%	35		%
Tax at U.S. federal statutory rate	$	22,250		$	23,170		$	(20,380	)
State and local taxes, net of federal tax benefit	3,030			2,250			(550		)
Differences in statutory foreign tax rates	380			(2,580		)	(1,930		)
Change in recognized tax benefits	(270		)	(480		)	(1,410		)
Goodwill and other intangible assets impairment	—			—			5,050
Nontaxable income	(940		)	(1,050		)	(310		)
Research and manufacturing incentives	(1,740		)	(1,510		)	(830		)
Net change in valuation allowance	650			520			2,140
Tax Reform Act	(400		)	12,660			—
Other, net	(280		)	2,270			(210		)
Income tax expense (benefit)	$	22,680		$	35,250		$	(18,430	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in the UTBs and related accrued interest and penalties for the years ended December 31, 2018 and 2017 is as follows (dollars in thousands):



	Unrecognized Tax Benefits
Balance at December 31, 2016	$	3,570
Tax positions related to current year:
Additions	250
Tax positions related to prior years:
Additions	860
Reductions	(100		)
Settlements	—
Lapses in the statutes of limitations	(1,210		)
Balance at December 31, 2017	$	3,370
Tax positions related to current year:
Additions	60
Tax positions related to prior years:
Additions	390
Reductions	—
Settlements	—
Lapses in the statutes of limitations	(800		)
Balance at December 31, 2018	$	3,020