Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate from continuing operations follows:



	2017		2016		2015
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes (net of federal benefit)	0.1		0.4		0.2
Transition Tax	45.0		—		—
U.S. Corporate Tax Rate change	2.1		—		—
Indefinite Reinvestment Assertion	3.5		—		—
Foreign operations taxed at different rates	(11.5	)	(10.9	)	(12.9	)
Foreign losses without tax benefit	1.5		0.7		1.1
Repatriation from current year foreign earnings	—		1.6		4.3
Tax withholding refund	—		—		(1.9	)
Tax Holidays	(0.8	)	(1.2	)	(3.2	)
Stock awards excess tax benefit	(1.2	)	(1.2	)	—
Swiss Legal Entity Reduction	(3.4	)	—		—
Audit Settlements	(2.7	)	—		—
Other	2.0		1.3		0.6
Consolidated effective income tax rate	69.6	%	25.7	%	23.2	%

Schedule of Income before Income Tax, Domestic and Foreign and Components of Income Tax Expense

The components of Income from continuing operations before income taxes and Income taxes follow:



	2017			2016			2015
Income from continuing operations before income taxes:
U.S.	$	3,082		$	34,129		$	11,525
International	192,617			148,492			146,421
Income from continuing operations before income taxes	$	195,699		$	182,621		$	157,946
Income tax provision:
Current:
U.S. – federal	$	77,799		$	7,215		$	(210	)
U.S. – state	1,762			755			2,019
International	48,032			41,516			32,217
	127,593			49,486			34,026
Deferred:
U.S. – federal	$	9,596		$	6,091		$	7,670
U.S. – state	819			1,060			(1,137		)
International	(1,724		)	(9,617		)	(3,993		)
	8,691			(2,466		)	2,540
Income taxes	$	136,284		$	47,020		$	36,566

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31 consist of the tax effects of temporary differences related to the following:



	2017			2016
Deferred tax assets:
Pension	$	13,255		$	27,410
Tax loss carryforwards	16,078			16,686
Inventory valuation	10,568			15,518
Other postretirement/postemployment costs	9,440			14,071
Accrued Compensation	5,743			10,121
Other	4,018			6,489
Valuation allowance	(10,223		)	(14,957		)
Total deferred tax assets	48,879			75,338
Deferred tax liabilities:
Depreciation and amortization	(82,422		)	(89,198		)
Goodwill	(9,440		)	(14,871		)
Other	(18,361		)	(12,282		)
Total deferred tax liabilities	(110,223		)	(116,351		)
Net deferred tax liabilities	$	(61,344	)	$	(41,013	)

In the first quarter of 2016, the Company prospectively adopted the amended guidance related to the balance sheet classification of deferred income taxes. The amended guidance removed the requirement to separate and classify deferred income tax liabilities and assets into current and non-current amounts and required an entity to now classify all deferred tax liabilities and assets as non-current. The provisions of the amended guidance were adopted on a prospective basis during the first quarter of 2016. Amounts related to deferred taxes in the balance sheets as of December 31, 2017 and 2016 are presented as follows:



	2017			2016
Non-current deferred tax assets	$	12,161		$	25,433
Non-current deferred tax liabilities	(73,505		)	(66,446		)
Net deferred tax liabilities	$	(61,344	)	$	(41,013	)

Summary of Income Tax Contingencies

A reconciliation of the unrecognized tax benefits for 2017, 2016 and 2015 follows:



	2017			2016		2015
Balance at January 1	$	13,320		$	10,634	$	8,560
Increase (decrease) in unrecognized tax benefits due to:
Tax positions taken during prior periods	1,141			—		1,691
Tax positions taken during the current period	778			117		—
Acquisition	—			2,569		598
Settlements	(4,162		)	—		—
Lapse of the applicable statute of limitations	(1,868		)	—		(215		)
Balance at December 31	$	9,209		$	13,320	$	10,634