Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Consolidated income (loss) from continuing operations before income taxes by location

Consolidated income before income taxes consisted of:



(Dollars in thousands)	2016		2015		2014
Domestic	$	10,888	$	14,832	$	9,604
International	71,392		51,341		71,620
Total	$	82,280	$	66,173	$	81,224

Income tax expense (benefit) by location

The income tax expense in the consolidated statements of operations consisted of:



(Dollars in thousands)	Current		Deferred			Total
2016
Domestic	$	2,078	$	3,376		$	5,454
International	24,537		4,006			28,543
Total	$	26,615	$	7,382		$	33,997

2015
Domestic	$	993	$	4,272		$	5,265
International	15,192		(604		)	14,588
Total	$	16,185	$	3,668		$	19,853

2014
Domestic	$	2,205	$	6,984		$	9,189
International	17,172		1,451			18,623
Total	$	19,377	$	8,435		$	27,812

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2016 and 2015, were comprised of the following:



(Dollars in thousands)	2016			2015
Deferred tax assets
Accrued employee benefits and compensation	9,899			9,284
Postretirement benefit obligations	3,335			5,434
Tax loss and credit carryforwards	7,146			9,318
Reserves and accruals	6,361			6,225
Other	2,792			3,474
Total deferred tax assets	29,533			33,735
Less deferred tax asset valuation allowance	(6,388		)	(6,202		)
Total deferred tax assets, net of valuation allowance	23,145			27,533
Deferred tax liabilities
Depreciation and amortization	14,965			17,492
Unremitted earnings	7,239			1,150
Other	190			187
Total deferred tax liabilities	22,394			18,829
Net deferred tax asset	$	751		$	8,704

Effective income tax rate reconciliation

Income tax expense differs from the amount computed by applying the United States federal statutory income tax rate to income before income taxes. The reasons for this difference were as follows:



(Dollars in thousands)	2016			2015			2014
Tax expense at Federal statutory income tax rate	$	28,798		$	23,161		$	28,429
International tax rate differential	(2,260		)	(4,792		)	(6,772		)
Foreign source income, net of tax credits	7,559			2,449			5,195
State tax, net of federal	(200		)	(416		)	—
Unrecognized tax benefits	(5,555		)	148			603
General business credits	(1,125		)	(908		)	(604		)
Acquisition related expenses	—			453			590
Taxes on unremitted earnings	6,089			—			—
Valuation allowance change	171			(1,489		)	388
Other	520			1,247			(17		)
Income tax expense (benefit)	$	33,997		$	19,853		$	27,812

Reconciliation of unrecognized tax benefits

Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2016 and December 31, 2015, were as follows:



(Dollars in thousands)	2016			2015
Beginning balance	$	10,571		$	9,368
Gross increases - current period tax positions	520			4,229
Gross increases - tax positions in prior periods	—			1,428
Gross decreases - tax positions in prior periods	(498		)	—
Foreign currency exchange	(137		)	(475		)
Lapse of statute of limitations	(4,573		)	(3,979		)
Ending balance	$	5,883		$	10,571