Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income before income taxes was taxed in the following jurisdictions in each of the years ended December 31:

	2017		2016		2015
	(Dollars in thousands)
Domestic	$	187,521	$	212,987	$	222,188
Foreign	52,160		18,930		30,698
Total	$	239,681	$	231,917	$	252,886

Components of Provision for Income Taxes

The components of the (benefit) provision for income taxes were as follows:

	2017			2016			2015
	(Dollars in thousands)
Current:
Federal	$	56,834		$	27,805		$	77,777
State	7,507			(577		)	7,972
Foreign	20,650			6,327			8,002
Current income tax provision	84,991			33,555			93,751
Deferred:
Federal	(118,919		)	42,964			(10,065		)
State	4,413			3,445			(1,932		)
Foreign	(463		)	(1,398		)	(1,281		)
Deferred income tax (benefit) provision	(114,969		)	45,011			(13,278		)
	$	(29,978	)	$	78,566		$	80,473

Variation of Provision for Income Taxes from Statutory U.S. Federal Income Tax Rate

The (benefit) provision for income taxes varied from income taxes computed at the statutory U.S. federal income tax rate as a result of the following:

	2017			2016			2015
	(Dollars in thousands)
Income taxes computed at the statutory     U.S. federal income tax rate	$	83,884		$	81,171		$	88,512
State income taxes, net of federal tax benefit	4,529			4,264			4,903
Tax liabilities required (no longer required)	1,254			(408		)	2,342
Valuation allowance	4,636			474			1,441
Manufacturing exemption	(5,143		)	(3,613		)	(7,849		)
Tax credit refunds, net	(2,797		)	(2,676		)	(2,325		)
Foreign earnings taxed at other than 35%	(3,840		)	(2,334		)	(6,383		)
Deferred tax rate changes	(114,163		)	(371		)	163
Other	1,662			2,059			(331		)
	$	(29,978	)	$	78,566		$	80,473
Effective tax rate	(12.5		)%	33.9		%	31.8		%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities at December 31 were as follows:

	2017			2016
	(Dollars in thousands)
Deferred tax assets:
Pension and other postretirement liabilities	$	21,235		$	14,678
Rationalization and other accrued liabilities	17,716			22,933
Property, plant and equipment	—			331
AMT and other credit carryforwards	1,910			1,449
Net operating loss carryforwards	34,102			21,605
Other intangible assets	—			821
Foreign currency translation	10,170			426
Inventory and related reserves	9,832			16,824
Other	2,093			3,482
Total deferred tax assets	97,058			82,549
Deferred tax liabilities:
Property, plant and equipment	(175,486		)	(208,409		)
Pension and other postretirement liabilities	(23,780		)	(30,414		)
Other intangible assets	(115,547		)	(81,209		)
Foreign currency translation	—			(22,156		)
Other	(3,961		)	(9,292		)
Total deferred tax liabilities	(318,774		)	(351,480		)
Valuation allowance	(14,089		)	(8,147		)
	$	(235,805	)	$	(277,078	)

Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits included as other liabilities in our Consolidated Balance Sheets was as follows:

	2017			2016
	(Dollars in thousands)
Balance at January 1,	$	56,721		$	50,337
Increase based upon tax positions of current year	1,183			5,955
(Decrease) increase based upon tax positions of a prior year	(6,839		)	217
Increase due to acquisitions	—			1,810
Decrease due to changes in tax rates	(3,408		)	—
Decrease based upon settlements with taxing authorities	(2,191		)	(1,159		)
Decrease based upon a lapse in the statute of limitations	(320		)	(439		)
Balance at December 31,	$	45,146		$	56,721