Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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

The “Income before income tax expense” line item in the consolidated statements of operations consisted of:



(Dollars in thousands)	2018		2017		2016
Domestic	$	14,381	$	39,751	$	10,888
International	96,208		93,174		71,392
Total	$	110,589	$	132,925	$	82,280

Income tax expense (benefit) by location

The “Income tax expense” line item in the consolidated statements of operations consisted of:



(Dollars in thousands)	Current			Deferred			Total
2018
Domestic	$	(341	)	$	(3,007	)	$	(3,348	)
International	26,604			(318		)	26,286
Total	$	26,263		$	(3,325	)	$	22,938

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

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2018 and 2017, were comprised of the following:



(Dollars in thousands)	2018			2017
Deferred tax assets
Accrued employee benefits and compensation	$	4,269		$	8,410
Tax loss and credit carryforwards	18,604			7,905
Reserves and accruals	4,935			4,699
Other	1,953			2,977
Total deferred tax assets	29,761			23,991
Less deferred tax asset valuation allowance	(16,889		)	(8,754		)
Total deferred tax assets, net of valuation allowance	12,872			15,237
Deferred tax liabilities
Depreciation and amortization	8,335			14,300
Postretirement benefit obligations	3,234			2,311
Unremitted earnings	1,778			3,100
Other	2,094			224
Total deferred tax liabilities	15,441			19,935
Net deferred tax asset (liability)	$	(2,569	)	$	(4,698	)

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)	2018			2017			2016
Tax expense at Federal statutory income tax rate	$	23,224		$	46,529		$	28,798
International tax rate differential	826			(9,603		)	(2,260		)
Foreign source income, net of tax credits (excluding U.S. Tax Reform)	(197		)	1,087			1,215
State tax, net of federal	121			279			(200		)
Unrecognized tax benefits	(869		)	2,874			(5,555		)
U.S. Tax Reform	209			13,683			—
Equity compensation excess tax deductions	(2,238		)	(3,867		)	—
General business credits	(2,172		)	(1,080		)	(1,125		)
Distribution related foreign taxes	1,916			2,173			12,433
Valuation allowance change (excluding U.S. Tax Reform)	602			1,393			171
Other	1,516			(1,002		)	520
Income tax expense (benefit)	$	22,938		$	52,466		$	33,997

Reconciliation of unrecognized tax benefits

Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2018 and December 31, 2017, were as follows:



(Dollars in thousands)	2018			2017
Beginning balance	$	14,565		$	5,883
Gross increases - current period tax positions	2,583			7,056
Gross increases - tax positions in prior periods	505			3,243
Gross decreases - tax positions in prior periods	—			(375		)
Foreign currency exchange	(142		)	467
Lapse of statute of limitations	(7,710		)	(1,709		)
Ending balance	$	9,801		$	14,565