Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

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)	2019			2018		2017
Domestic	$	(18,711	)	$	14,381	$	39,751
International	73,837			96,208		93,174
Total	$	55,126		$	110,589	$	132,925

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
2019
Domestic	$	3,372		$	(16,827	)	$	(13,455	)
International	21,984			(722		)	21,262
Total	$	25,356		$	(17,549	)	$	7,807
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

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2019 and 2018, were comprised of the following:

(Dollars in thousands)	2019			2018
Deferred tax assets
Accrued employee benefits and compensation	$	5,730		$	4,269
Tax loss and credit carryforwards	17,761			18,604
Reserves and accruals	5,996			4,935
Operating leases	904			—
Other	2,210			1,953
Total deferred tax assets	32,601			29,761
Less deferred tax asset valuation allowance	(14,625		)	(16,889		)
Total deferred tax assets, net of valuation allowance	17,976			12,872
Deferred tax liabilities
Depreciation and amortization	4,025			8,335
Postretirement benefit obligations	1,719			3,234
Unremitted earnings	1,624			1,778
Operating leases	908			—
Other	1,803			2,094
Total deferred tax liabilities	10,079			15,441
Net deferred tax asset (liability)	$	7,897		$	(2,569	)

Effective income tax rate reconciliation

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

(Dollars in thousands)	2019			2018			2017
Tax expense at Federal statutory income tax rate	$	11,576		$	23,224		$	46,529
Impact of foreign operations	107			826			(9,603		)
Foreign source income, net of tax credits	(2,248		)	(197		)	1,087
State tax, net of federal	(690		)	121			279
Unrecognized tax benefits	543			(869		)	2,874
U.S. Tax Reform	—			209			13,683
Equity compensation excess tax deductions	(2,902		)	(2,238		)	(3,867		)
General business credits	(656		)	(2,172		)	(1,080		)
Distribution related foreign taxes	1,240			1,916			2,173
Valuation allowance change (excluding U.S. Tax Reform)	(2,527		)	602			1,393
Disproportionate tax effect of pension settlement charges	2,510			—			—
Other	854			1,516			(1,002		)
Income tax expense (benefit)	$	7,807		$	22,938		$	52,466

Reconciliation of unrecognized tax benefits

Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2019 and December 31, 2018, were as follows:

(Dollars in thousands)	2019			2018
Beginning balance as of January 1	$	9,801		$	14,565
Gross increases - current period tax positions	3,139			2,583
Gross increases - tax positions in prior periods	—			505
Gross decreases - tax positions in prior periods	—			—
Foreign currency exchange	—			(142		)
Lapse of statute of limitations	(2,723		)	(7,710		)
Ending balance as of December 31	$	10,217		$	9,801