Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The provisions for taxes on income and the related income before taxes for the years ended December 31, 2018, 2017 and 2016, were as follows:

The variations between the effective and statutory U.S. federal income tax rates are summarized as follows:

(In thousands)	2018 Amount			%			2017 Amount			%			2016 Amount			%
Federal income tax provision at statutory tax rate	$	29,384			21.0		$	48,733			35.0		$	39,836			35.0
State income tax provision, less applicable federal tax benefit		3,150			2.3			1,271			0.9			716			0.6
Foreign income taxed at different rates		864			0.6			(8,075	)		(5.8	)		(6,325	)		(5.6	)
U.S. taxation of foreign earnings^(a)		2,348			1.7			(1,054	)		(0.8	)		14			—
Unrecognized tax benefits		(460	)		(0.3	)		(47	)		—			23			—
Domestic production activities deduction		—			—			(1,339	)		(1.0	)		(1,633	)		(1.4	)
Nontaxable foreign interest income		(1,179	)		(0.8	)		(2,073	)		(1.5	)		(2,030	)		(1.8	)
U.S. tax reform, net impact^(b)		(375	)		(0.3	)		14,807			10.7			—			—
Change in accounting methods^(c)		(3,383	)		(2.4	)		(893	)		(0.6	)		—			—
Stock based compensation, excess tax benefits^(d)		(1,648	)		(1.2	)		(2,254	)		(1.6	)		(1,878	)		(1.7	)
U.S. tax credits		(1,324	)		(0.9	)		(1,204	)		(0.9	)		(1,100	)		(1.0	)
Non-deductible expenses and other items, net^(e)		(204	)		(0.3	)		(182	)		(0.1	)		(5	)		0.2
Total income tax provision	$	27,173			19.4		$	47,690			34.3		$	27,618			24.3

(a)	Includes cost of global intangible low-taxed income (GILTI) in 2018 and withholding taxes paid on cash repatriated from foreign countries.

(b)	Does not include state tax impacts, which are included in state income tax provision, less applicable federal tax benefit.

(c)	For 2018, amount represents the federal tax rate change due to certain accounting methods that were adopted on the 2017 federal income tax return. For 2017, amount represents an accounting method change for depreciation.

(d)	Excess tax benefits related to employee share-based payment transactions recognized in 2018, 2017 and 2016 resulting from the adoption of ASU No. 2016-9.

(e)	Certain 2016 amounts have been reclassified to conform to the 2017 and 2018 presentation.

At December 31, 2018 and 2017, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows:

(In thousands)	2018			2017
Deferred Tax Liabilities:
Depreciation	$	(57,665	)	$	(51,244	)
Unrealized foreign exchange loss		(980	)		(734	)
Amortization of intangibles		(1,016	)		(1,420	)
Inventories		(725	)		—
Other		(301	)		(646	)
	$	(60,687	)	$	(54,044	)
Deferred Tax Assets:
Pensions	$	7,971		$	7,884
Deferred revenue		208			232
Other accruals and reserves		13,123			13,660
Inventories		—			1,182
Legal and environmental accruals		7,143			7,243
Deferred compensation		14,214			15,402
Bad debt and rebate reserves		2,916			2,865
Non-U.S. subsidiaries net operating loss carryforwards		3,869			2,657
Tax credit carryforwards		2,141			1,851
	$	51,585		$	52,976
Valuation Allowance	$	(3,701	)	$	(2,255	)
Net Deferred Tax Liabilities	$	(12,803	)	$	(3,323	)
Reconciliation to Consolidated Balance Sheet:
Non-current deferred tax assets (in other non-current assets)		5,869			7,639
Non-current deferred tax liabilities		(18,672	)		(10,962	)
Net Deferred Tax (Liabilities) Assets	$	(12,803	)	$	(3,323	)

Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2018, 2017 and 2016:

(In thousands)	2018			2017			2016
Unrecognized tax benefits, opening balance	$	1,927		$	1,931		$	1,958
Gross increases – tax positions in prior period		29			—			—
Gross increases – current period tax positions		26			20			35
Foreign currency translation		1			69			(43	)
Settlement		(1,526	)		—			—
Lapse of statute of limitations		(289	)		(93	)		(19	)
Unrecognized tax benefits, ending balance	$	168		$	1,927		$	1,931