Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income from continuing operations before income taxes and income taxes are as follows:



(In Thousands)	2015			2014			2013
Income from continuing operations before income taxes:
Domestic	$	(9,116	)	$	38,402		$	37,380
Foreign	(14,091		)	7,014			15,552
Total	$	(23,207	)	$	45,416		$	52,932
Current income taxes:
Federal	$	12,693		$	14,568		$	15,988
State	973			2,178			1,416
Foreign	6,064			4,102			4,737
Total	19,730			20,848			22,141
Deferred income taxes:
Federal	(9,419		)	(9,530		)	(2,933		)
State	(1,035		)	(417		)	(852		)
Foreign	(348		)	(1,514		)	(1,361		)
Total	(10,802		)	(11,461		)	(5,146		)
Total income taxes	$	8,928		$	9,387		$	16,995

The significant differences between the U.S. federal statutory rate and the effective income tax rate for continuing operations are as follows:



	Percent of Income Before Income Taxes from Continuing Operations
	2015		2014		2013
Federal statutory rate	35.0		35.0		35.0
Domestic Production Activities Deduction	3.6		(1.9	)	(1.4	)
Foreign rate differences	3.1		(0.1	)	(0.7	)
Unremitted earnings from foreign operations	2.2		(3.8	)	0.9
Research and development tax credit	1.5		(0.6	)	(0.4	)
Valuation allowance for capital loss carry-forwards	1.3		(10.2	)	0.8
Tax incentive	0.5		(0.1	)	(4.7	)
State taxes, net of federal income tax benefit	0.3		2.2		0.1
Remitted earnings from foreign operations	0.1		—		—
Valuation allowance for foreign operating loss carry-forwards	—		(0.4	)	0.5
Non-deductible expenses	(1.9	)	0.9		0.6
Changes in estimates related to prior year tax provision	(2.1	)	(2.3	)	(0.6	)
Tax contingency accruals and tax settlements	(3.1	)	2.0		2.0
Foreign investment write down	(10.9	)	—		—
Goodwill impairment	(68.1	)	—		—
Effective income tax rate for continuing operations	(38.5	)	20.7		32.1

Deferred tax liabilities and deferred tax assets at December 31, 2015 and 2014, are as follows:



(In Thousands)	2015		2014
Deferred tax liabilities:
Amortization of goodwill and other intangibles	$	42,900	$	45,696
Depreciation	22,221		27,550
Foreign currency translation gain adjustment	2,738		4,233
Derivative financial instruments	—		316
Total deferred tax liabilities	67,859		77,795
Deferred tax assets:
Pensions	31,972		34,214
Employee benefits	10,397		11,597
Excess capital losses and book/tax basis differences on investments	8,026		3,282
Inventory	4,636		6,221
Asset write-offs, divestitures and environmental accruals	2,022		1,593
Tax benefit on state and foreign NOL and credit carryforwards	1,624		2,967
Timing adjustment for unrecognized tax benefits on uncertain tax positions, including portion relating to interest and penalties	1,006		842
Allowance for doubtful accounts	406		479
Derivative financial instruments	234		—
Other	2,224		799
Deferred tax assets before valuation allowance	62,547		61,994
Less: Valuation allowance	13,344		14,577
Total deferred tax assets	49,203		47,417
Net deferred tax liability	$	18,656	$	30,378
Included in the balance sheet:
Noncurrent deferred tax liabilities in excess of assets	$	18,656	$	39,255
Current deferred tax assets in excess of liabilities	—		8,877
Net deferred tax liability	$	18,656	$	30,378

A reconciliation of the Company’s unrecognized uncertain tax positions since January 1, 2013, is shown below:



	Years Ended December 31,
(In Thousands)	2015			2014		2013
Balance at beginning of period	$	3,255		$	2,239	$	910
Increase (decrease) due to tax positions taken in:
Current period	518			619		643
Prior period	326			397		686
Increase (decrease) due to settlements with taxing authorities	—			—		—
Reductions due to lapse of statute of limitations	(50		)	—		—
Balance at end of period	$	4,049		$	3,255	$	2,239

Additional information related to unrecognized uncertain tax positions since January 1, 2013 is summarized below:



	Years Ended December 31,
(In Thousands)	2015			2014			2013
Gross unrecognized tax benefits on uncertain tax positions (reflected in current income tax and other noncurrent liability accounts in the balance sheet)	$	4,049		$	3,255		$	2,239
Deferred income tax assets related to unrecognized tax benefits on uncertain tax positions (reflected in deferred income tax accounts in the balance sheet)	(858		)	(726		)	(540		)
Net unrecognized tax benefits on uncertain tax positions, which would impact the effective tax rate if recognized	3,191			2,529			1,699
Interest and penalties accrued on deductions taken relating to uncertain tax positions (approximately $90, $150 and $100 reflected in income tax expense in the income statement in 2015, 2014 and 2013, respectively, with the balance shown in current income tax and other noncurrent liability accounts in the balance sheet)	397			310			156
Related deferred income tax assets recognized on interest and penalties	(148		)	(116		)	(60		)
Interest and penalties accrued on uncertain tax positions net of related deferred income tax benefits, which would impact the effective tax rate if recognized	249			194			96
Total net unrecognized tax benefits on uncertain tax positions reflected in the balance sheet, which would impact the effective tax rate if recognized	$	3,440		$	2,723		$	1,795