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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Tax Disclosure | Income Taxes The Company's income (loss) before income taxes and income tax expense (benefit), each by tax jurisdiction, consists of the following (dollars in thousands):
|  | Year ended December 31,
|  | 2018 |  | 2017 |  | 2016
Income (loss) before income taxes: |  |  |  |  |  |
Domestic |  | $ | 75,830 |  |  | $ | 50,760 |  |  | $ | (69,850 | )
Foreign |  | 30,150 |  |  | 15,450 |  |  | 11,620 |
Total income (loss) before income taxes |  | $ | 105,980 |  |  | $ | 66,210 |  |  | $ | (58,230 | )
Current income tax expense: |  |  |  |  |  |
Federal |  | $ | 6,770 |  |  | $ | 12,800 |  |  | $ | 7,560 |
State and local |  | 2,440 |  |  | 1,770 |  |  | 1,920 |
Foreign |  | 7,070 |  |  | 5,420 |  |  | 4,250 |
Total current income tax expense |  | 16,280 |  |  | 19,990 |  |  | 13,730 |
Deferred income tax expense (benefit): |  |  |  |  |  |
Federal |  | 4,540 |  |  | 15,180 |  |  | (28,180 | )
State and local |  | 1,310 |  |  | 1,280 |  |  | (2,550 | )
Foreign |  | 550 |  |  | (1,200 | ) |  | (1,430 | )
Total deferred income tax expense (benefit) |  | 6,400 |  |  | 15,260 |  |  | (32,160 | )
Income tax expense (benefit) |  | $ | 22,680 |  |  | $ | 35,250 |  |  | $ | (18,430 | )
The components of deferred taxes are as follows (dollars in thousands):
|  | December 31, 2018 |  | December 31, 2017
Deferred tax assets: |  |  |  |
Accounts receivable |  | $ | 310 |  |  | $ | 1,000 |
Inventories |  | 1,900 |  |  | 5,230 |
Accrued liabilities and other long-term liabilities |  | 7,220 |  |  | 20,350 |
Tax loss and credit carryforwards |  | 6,990 |  |  | 7,290 |
Gross deferred tax asset |  | 16,420 |  |  | 33,870 |
Valuation allowances |  | (5,520 | ) |  | (6,400 | )
Net deferred tax asset |  | 10,900 |  |  | 27,470 |
Deferred tax liabilities: |  |  |  |
Property and equipment |  | (8,770 | ) |  | (16,380 | )
Goodwill and other intangible assets |  | (4,940 | ) |  | (5,350 | )
Investment in foreign affiliates, including withholding tax |  | (1,050 | ) |  | (740 | )
Other, principally deferred income |  | (620 | ) |  | (1,550 | )
Gross deferred tax liability |  | (15,380 | ) |  | (24,020 | )
Net deferred tax asset (liability) |  | $ | (4,480 | ) |  | $ | 3,450 |
The following is a reconciliation of income tax expense (benefit) computed at the U.S. federal statutory rate to income tax expense (benefit) allocated to income (loss) before income taxes (dollars in thousands):
|  | Year ended December 31,
|  | 2018 |  | 2017 |  | 2016
U.S. federal statutory rate |  | 21 | % |  | 35 | % |  | 35 | %
Tax at U.S. federal statutory rate |  | $ | 22,250 |  |  | $ | 23,170 |  |  | $ | (20,380 | )
State and local taxes, net of federal tax benefit |  | 3,030 |  |  | 2,250 |  |  | (550 | )
Differences in statutory foreign tax rates |  | 380 |  |  | (2,580 | ) |  | (1,930 | )
Change in recognized tax benefits |  | (270 | ) |  | (480 | ) |  | (1,410 | )
Goodwill and other intangible assets impairment |  | — |  |  | — |  |  | 5,050 |
Nontaxable income |  | (940 | ) |  | (1,050 | ) |  | (310 | )
Research and manufacturing incentives |  | (1,740 | ) |  | (1,510 | ) |  | (830 | )
Net change in valuation allowance |  | 650 |  |  | 520 |  |  | 2,140 |
Tax Reform Act |  | (400 | ) |  | 12,660 |  |  | — |
Other, net |  | (280 | ) |  | 2,270 |  |  | (210 | )
Income tax expense (benefit) |  | $ | 22,680 |  |  | $ | 35,250 |  |  | $ | (18,430 | )
The Company has recorded deferred tax assets on $31.1 million of various state operating loss carryforwards and $18.3 million of various foreign operating loss carryforwards. The majority of the state tax loss carryforwards expire between 2024 and 2028 and the majority of the foreign losses have indefinite carryforward periods. The Company has not made a provision for U.S. or additional foreign withholding taxes related to investments in foreign subsidiaries that are indefinitely reinvested since any excess of the amount for financial reporting over the tax basis in these investments is not significant as of December 31, 2018. Tax Reform In December 2017, the Tax Reform Act was signed into law, and, among the provisions, reduced the Federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018, and implemented a territorial tax system, imposing a one-time tax on the deemed repatriation of undistributed earnings of non-U.S. subsidiaries ("Transition Tax"). The Transition Tax is payable over eight years beginning in 2019. Coincident with the signing of the Tax Reform Act, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. SAB 118 provided up to a one-measurement period for companies to finalize the accounting for the impacts of this new legislation. In 2017, the Company recognized an approximate $9.0 million provisional tax expense related to the Transition Tax, and an approximate $3.7 million provisional tax expense in connection with the revaluation of its ending net deferred tax assets resulting from the reduction in the Federal income tax rate, for a total of $12.7 million provisional tax expense related to the adoption of the Tax Reform Act. In 2018, the Company finalized the measurement of these provisional expenses. The Company recognized an approximate $1.1 million income tax benefit in connection with finalizing the revaluation of its net deferred tax assets following the filing of the Company's 2017 corporate income tax return, and recognized an approximate $0.7 million income tax expense related to finalizing the Transition Tax, resulting in a $0.4 million net reduction in 2018 to the $12.7 million provisional tax expense recorded in 2017. On January 15, 2019, the Internal Revenue Service finalized regulations that govern the Transition Tax. The Company is in the process of analyzing these regulations, but does not expect the regulations to have a significant impact on its consolidated financial statements. Unrecognized tax benefits The Company had approximately $3.0 million and $3.4 million of unrecognized tax benefits ("UTBs") as of December 31, 2018 and 2017, respectively. If the UTBs were recognized, the impact to the Company's effective tax rate would be to reduce reported income tax expense for the years ended December 31, 2018 and 2017 by approximately $2.5 million and $2.8 million, respectively. A reconciliation of the change in the UTBs and related accrued interest and penalties for the years ended December 31, 2018 and 2017 is as follows (dollars in thousands):
|  | Unrecognized Tax Benefits
Balance at December 31, 2016 |  | $ | 3,570 |
Tax positions related to current year: |  |
Additions |  | 250 |
Tax positions related to prior years: |  |
Additions |  | 860 |
Reductions |  | (100 | )
Settlements |  | — |
Lapses in the statutes of limitations |  | (1,210 | )
Balance at December 31, 2017 |  | $ | 3,370 |
Tax positions related to current year: |  |
Additions |  | 60 |
Tax positions related to prior years: |  |  |
Additions |  | 390 |
Reductions |  | — |
Settlements |  | — |
Lapses in the statutes of limitations |  | (800 | )
Balance at December 31, 2018 |  | $ | 3,020 |
In addition to the UTBs summarized above, the Company has recorded approximately $1.8 million and $1.7 million in potential interest and penalties associated with uncertain tax positions as of December 31, 2018 and 2017, respectively. The Company is subject to U.S. federal, state and local, and certain non-U.S. income tax examinations for tax years 2011 through 2018. In addition, there are currently several state and foreign income tax examinations in process. The Company does not believe that the results of these examinations will have a significant impact on the Company's tax position or its effective tax rate. Management monitors changes in tax statutes and regulations and the issuance of judicial decisions to determine the potential impact to UTBs and is not aware of, nor does it anticipate, any material subsequent events that could have a significant impact on the Company's financial position during the next twelve months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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