Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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

Consolidated income before income taxes consisted of:



(Dollars in thousands)	2017		2016		2015
Domestic	$	39,751	$	10,888	$	14,832
International	93,174		71,392		51,341
Total	$	132,925	$	82,280	$	66,173

Income tax expense (benefit) by location

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



(Dollars in thousands)	Current		Deferred			Total
2017
Domestic	$	7,535	$	21,936		$	29,471
International	27,418		(4,423		)	22,995
Total	$	34,953	$	17,513		$	52,466

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

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2017 and 2016, were comprised of the following:



(Dollars in thousands)	2017			2016
Deferred tax assets
Accrued employee benefits and compensation	8,410			9,899
Postretirement benefit obligations	—			3,335
Tax loss and credit carryforwards	7,905			7,146
Reserves and accruals	4,699			6,361
Other	2,977			2,792
Total deferred tax assets	23,991			29,533
Less deferred tax asset valuation allowance	(8,754		)	(6,388		)
Total deferred tax assets, net of valuation allowance	15,237			23,145
Deferred tax liabilities
Depreciation and amortization	14,300			14,965
Postretirement benefit obligations	2,311			—
Unremitted earnings	3,100			7,239
Other	224			190
Total deferred tax liabilities	19,935			22,394
Net deferred tax asset	$	(4,698	)	$	751

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)	2017			2016			2015
Tax expense at Federal statutory income tax rate	$	46,529		$	28,798		$	23,161
International tax rate differential	(9,603		)	(2,260		)	(4,792		)
Foreign source income, net of tax credits (excluding U.S. Tax Reform)	1,087			1,215			2,449
State tax, net of federal	279			(200		)	(416		)
Unrecognized tax benefits	2,874			(5,555		)	148
U.S. Tax Reform	13,683			—			—
Equity compensation excess tax deductions	(3,867		)	—			—
General business credits	(1,080		)	(1,125		)	(908		)
Acquisition related expenses	—			—			453
Distribution related foreign taxes	2,173			12,433			—
Valuation allowance change (excluding U.S. Tax Reform)	1,393			171			(1,489		)
Other	(1,002		)	520			1,247
Income tax expense (benefit)	$	52,466		$	33,997		$	19,853

Reconciliation of unrecognized tax benefits

Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2017 and December 31, 2016, were as follows:



(Dollars in thousands)	2017			2016
Beginning balance	$	5,883		$	10,571
Gross increases - current period tax positions	7,056			520
Gross increases - tax positions in prior periods	3,243			—
Gross decreases - tax positions in prior periods	(375		)	(498		)
Foreign currency exchange	467			(137		)
Lapse of statute of limitations	(1,709		)	(4,573		)
Ending balance	$	14,565		$	5,883