Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of income before income taxes

The components of income before income taxes were taxed under the following jurisdictions:

(In thousands)	2016		2015		2014

Domestic	$	103,576	$	121,614	$	135,445
Foreign		42,454		10,175		12,568

Income before income taxes	$	146,030	$	131,789	$	148,013

Components of income tax expense

Income tax expense consists of the following:

(In thousands)	2016			2015			2014

Current tax expense:
Federal	$	32,262		$	50,272		$	45,723
Foreign		5,667			4,042			2,346
State and local		3,210			4,886			3,905

Current tax expense		41,139			59,200			51,974

Deferred tax expense (benefit):
Federal		2,004			(13,739	)		(2,469	)
Foreign		5,099			(1,180	)		890
State and local		(105	)		(899	)		(4,916	)

Deferred tax (benefit) expense		6,998			(15,818	)		(6,495	)

Income tax expense	$	48,137		$	43,382		$	45,479

Income tax reconciliation

The difference between the reported income tax expense and a tax determined by applying the applicable U.S. federal statutory income tax rate to income before income taxes is reconciled as follows:

(In thousands)	2016			2015			2014

Expected income tax expense	$	51,110		$	46,126		$	51,805
State and local income tax, net of federal benefit		1,982			2,673			3,355
Effect of foreign statutory rate different from U.S. and other foreign adjustments		(4,092	)		(654	)		(1,094	)
Valuation allowance changes		—			—			(5,732	)
U.S. production activities deduction		(3,063	)		(3,500	)		(4,025	)
Goodwill disposition		—			646			—
Investment in unconsolidated affiliates		1,030			—			—
Permanent adjustment to deferred tax liabilities		—			(4,218	)		—
Other, net		1,170			2,309			1,170

Income tax expense	$	48,137		$	43,382		$	45,479

Components of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

(In thousands)	2016			2015

Deferred tax assets:
Inventories	$	15,483		$	14,802
Other postretirement benefits and accrued items		13,180			15,294
Pension		-			2,349
Other reserves		9,821			9,823
Federal and foreign tax attributes		5,813			7,403
State tax attributes, net of federal benefit		22,572			21,716
Share-based compensation		2,416			3,397
Basis difference in unconsolidated affiliates		211			—

Total deferred tax assets		69,496			74,784
Less valuation allowance		(18,681	)		(17,650	)

Deferred tax assets, net of valuation allowance		50,815			57,134

Deferred tax liabilities:
Property, plant, and equipment		52,319			43,592
Pension		4,633			—
Other		—			1,546

Total deferred tax liabilities		56,952			45,138

Net deferred tax (liability) asset	$	(6,137	)	$	11,996