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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Schedule of components of income before income taxes | The components of income before income taxes were as follows:
| Year ended December 31,
(in thousands) | 2019 |  | 2018 |  | 2017
Domestic operations | $ | 70,632 |  |  | $ | 54,003 |  |  | $ | 61,158 |
Foreign operations | 94,533 |  |  | 96,301 |  |  | 90,518 |
Income before income taxes | $ | 165,165 |  |  | $ | 150,304 |  |  | $ | 151,676 |
Schedule of income tax expense | Income tax expense/ (benefit) was as follows:
| Year ended December 31,
(in thousands) | 2019 |  | 2018 |  | 2017
Current expense (benefit) |  |  |  |  |
United States | $ | 1,121 |  |  | $ | 1,795 |  |  | $ | (906 | )
Foreign | 31,005 |  |  | 29,896 |  |  | 28,109 |
Current income tax expense | 32,126 |  |  | 31,691 |  |  | 27,203 |
Deferred expense (benefit) |  |  |  |  |
United States | 9,539 |  |  | 16,222 |  |  | 21,189 |
Foreign | (1,065 | ) |  | (681 | ) |  | 83 |
Deferred income tax expense | 8,474 |  |  | 15,541 |  |  | 21,272 |
Total income tax expense | $ | 40,600 |  |  | $ | 47,232 |  |  | $ | 48,475 |
Schedule of reconciliation of income taxes | The following table represents a reconciliation of income taxes computed at the federal statutory income tax rate of 21% for 2019, 21% for 2018, and 35% for 2017 to income tax expense as reported:
| Year ended December 31,
(in thousands) | 2019 |  | 2018 |  | 2017
Income tax expense computed at federal statutory income tax rate | $ | 34,685 |  |  | $ | 31,564 |  |  | $ | 53,086 |
Foreign taxes, net of credits | 714 |  |  | 13,316 |  |  | (16,840 | )
Impact of the 2017 Tax Act | — |  |  | 10,801 |  |  | 12,619 |
Net adjustments for uncertain tax positions | 799 |  |  | 771 |  |  | 508 |
State and local taxes | 1,832 |  |  | 2,349 |  |  | 1,313 |
Equity appreciation rights | — |  |  | — |  |  | (765 | )
Nondeductible expenses | 1,179 |  |  | 962 |  |  | 1,407 |
Valuation allowance | 2,882 |  |  | (10,038 | ) |  | 90 |
Tax credits | (607 | ) |  | (2,800 | ) |  | (3,240 | )
Miscellaneous other, net | (884 | ) |  | 307 |  |  | 297 |
Income tax expense as reported | $ | 40,600 |  |  | $ | 47,232 |  |  | $ | 48,475 |
Effective income tax rate | 24.6 | % |  | 31.4 | % |  | 32.0 | %
Schedule of components of net deferred tax assets (liabilities) | The components of net deferred tax assets (liabilities) were as follows:
| December 31,
(in thousands) | 2019 |  | 2018
Deferred tax assets |  |  |
Compensation and benefits | $ | 13,208 |  |  | $ | 14,036 |
Share-based compensation | 2,682 |  |  | 7,446 |
Pension and other postretirement benefits | 24,260 |  |  | 22,285 |
Inventories | 15,379 |  |  | 11,505 |
R&D capitalization | 12,925 |  |  | 6,449 |
Lease liability | 9,669 |  |  | — |
Partnership investment | 223 |  |  | 110 |
Transaction costs | 1,365 |  |  | 1,580 |
Nondeductible accruals and reserves | 6,907 |  |  | 7,248 |
Miscellaneous | 2,802 |  |  | 2,379 |
Net operating loss and other tax carryforwards | 74,586 |  |  | 80,671 |
Gross deferred tax assets | 164,006 |  |  | 153,709 |
Valuation allowance | (18,424 | ) |  | (15,542 | )
Total deferred tax assets | 145,582 |  |  | 138,167 |
Deferred tax liabilities |  |  |
Property, plant and equipment | (6,687 | ) |  | (8,057 | )
Identifiable intangible assets | (62,349 | ) |  | (54,681 | )
Right-of-use assets | (9,407 | ) |  | — |
Foreign exchange derivative instruments | (154 | ) |  | (1,176 | )
Miscellaneous | (1,281 | ) |  | (860 | )
Total deferred tax liabilities | (79,878 | ) |  | (64,774 | )
Net deferred tax asset | $ | 65,704 |  |  | $ | 73,393 |
Schedule of changes in valuation allowance for deferred tax assets | Changes in the valuation allowance for deferred tax assets were as follows:
| Year ended December 31,
(in thousands) | 2019 |  | 2018 |  | 2017
Valuation allowance at beginning of year | $ | 15,542 |  |  | $ | 25,579 |  |  | $ | 21,726 |
Increases (decreases) recorded to income tax provision | 2,882 |  |  | (10,037 | ) |  | 3,853 |
Valuation allowance at end of year | $ | 18,424 |  |  | $ | 15,542 |  |  | $ | 25,579 |
Schedule of reconciliation of activity related to unrecognized tax benefits, excluding accrued interest and penalties | The following table represents a reconciliation of the activity related to the unrecognized tax benefits, excluding accrued interest and penalties:
(in thousands) | 2019 |  | 2018 |  | 2017
Unrecognized tax benefits at beginning of year | $ | 11,646 |  |  | $ | 11,049 |  |  | $ | 11,347 |
Gross additions - current year tax positions | 787 |  |  | 801 |  |  | 1,159 |
Gross additions - acquired tax positions | 659 |  |  | — |  |  | — |
Gross reductions - prior year tax positions | (248 | ) |  | (91 | ) |  | (348 | )
Gross reductions - Acquired tax positions settled with tax authorities | (461 | ) |  | (113 | ) |  | (1,241 | )
Impact of change in foreign exchange rates | (16 | ) |  | — |  |  | 132 |
Unrecognized tax benefits at end of year | $ | 12,367 |  |  | $ | 11,646 |  |  | $ | 11,049 |

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