Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule Of Income From Continuing Operations Before Income Taxes

Income (loss) before income taxes and income tax expense (benefit) are as follows:



(In thousands)	2019			2018			2017
Income (loss) before income taxes:
Domestic	$	35,731		$	17,663		$	67,549
Foreign	22,441			18,705			(82,461		)
Total	$	58,172		$	36,368		$	(14,912	)
Current income tax expense (benefit):
Federal	$	1,202		$	(187	)	$	(20,560	)
State	989			815			800
Foreign	1,801			2,090			3,247
Total	3,992			2,718			(16,513		)
Deferred income tax expense (benefit):
Federal	17,357			8,708			(23,302		)
State	311			364			(949		)
Foreign	(11,747		)	(264		)	(12,399		)
Total	5,921			8,808			(36,650		)
Total income tax expense (benefit)	$	9,913		$	11,526		$	(53,163	)

Summary Of Effective Income Tax Rate For Continuing Operations



	2019					2018					2017
(In thousands, except percentages)	Amount			%		Amount			%		Amount			%
Income tax expense (benefit) at federal statutory rate	$	12,223		21.0		$	7,638		21.0		$	(5,219	)	35.0
U.S. tax on foreign branch income	15,865			27.2		1,901			5.2		—			—
Foreign rate differences	2,211			3.8		1,805			5.0		2,546			(17.1	)
State taxes, net of federal income tax benefit	987			1.7		520			1.4		656			(4.4	)
Non-deductible expenses	467			0.8		322			0.9		434			(2.9	)
Stock-based compensation	283			0.5		175			0.5		199			(1.3	)
Global intangible low tax income	68			0.1		—			—		—			—
Valuation allowance for capital loss carryforwards	60			0.1		553			1.5		83			(0.6	)
Unremitted earnings from foreign operations	60			0.1		126			0.3		—			—
Non-deductible goodwill and asset impairment loss	—			—		1,801			5.1		228			(1.5	)
Increase in value of kaléo investment held abroad	—			—		—			—		(2,326		)	15.6
Settlement of Terphane acquisition escrow	—			—		—			—		(4,200		)	28.2
Impact of U.S. Tax Cuts and Jobs Act	—			—		—			—		(4,433		)	29.7
Worthless stock deductions	—			—		—			—		(61,413		)	411.9
Foreign derived intangible income deduction	(273		)	(0.5	)	(1,050		)	(2.9	)	—			—
Changes in estimates related to prior year tax provision	(721		)	(1.2	)	(303		)	(0.8	)	320			(2.1	)
Research and development tax credit	(830		)	(1.4	)	(420		)	(1.2	)	(375		)	2.5
Dividend received deduction net of foreign withholding tax	(1,016		)	(1.7	)	—			—		—			—
Brazilian tax incentive	(1,999		)	(3.4	)	(1,340		)	(3.7	)	—			—
Tax contingency accruals and tax settlements	(2,543		)	(4.4	)	773			2.1		(420		)	2.8
Valuation allowance due to foreign losses and impairments	(14,929		)	(25.6	)	(975		)	(2.7	)	20,757			(139.3	)
Income tax expense (benefit) at effective income tax rate	$	9,913		17.1		$	11,526		31.7		$	(53,163	)	356.5

Schedule Of Deferred Tax Liabilities And Assets

liabilities and deferred income tax assets at December 31, 2019 and 2018, are as follows:



(In thousands)	2019			2018
Deferred income tax liabilities:
Amortization of goodwill and identifiable intangibles	$	12,023		$	13,416
Depreciation	7,065			—
Foregone tax credits on foreign branch income	12,361			—
Foreign currency translation gain adjustment	—			300
Excess of carrying value over tax basis of investment in kaléo	17,504			15,131
Right-of-use leased assets	751			—
Other	549			184
Total deferred income tax liabilities	50,253			29,031
Deferred income tax assets:
Depreciation	—			2,399
Pensions	21,025			17,153
Employee benefits	7,964			6,676
Excess capital losses	1,551			1,519
Inventory	3,734			3,644
Asset write-offs, divestitures and environmental accruals	1,355			1,200
Tax benefit on U.S. federal, state and foreign NOL and credit carryforwards	19,658			23,507
Timing adjustment for unrecognized tax benefits on uncertain tax positions, including portion relating to interest and penalties	187			267
Allowance for doubtful accounts	383			382
Lease liabilities	967			—
Derivative financial instruments	345			432
Foreign currency translation gain adjustment	285			—
Deferred income tax assets before valuation allowance	57,454			57,179
Less: Valuation allowance	5,091			24,736
Total deferred income tax assets	52,363			32,443
Net deferred income tax (assets) liabilities	$	(2,110	)	$	(3,412	)
Amounts recognized in the consolidated balance sheets:
Deferred income tax assets (noncurrent)	$	13,129		$	3,412
Deferred income tax liabilities (noncurrent)	11,019			—
Net deferred income tax assets (liabilities)	$	2,110		$	3,412

Schedule Of Unrecognized Uncertain Tax Positions

A reconciliation of the Company’s unrecognized uncertain tax positions since January 1, 2017, is shown below:



	Years Ended December 31,
(In thousands)	2019			2018			2017
Balance at beginning of period	$	3,361		$	1,962		$	3,315
Increase (decrease) due to tax positions taken in:
Current period	12			13			27
Prior period	49			1,430			(532		)
Increase (decrease) due to settlements with taxing authorities	(151		)	—			(51		)
Reductions due to lapse of statute of limitations	(2,390		)	(44		)	(797		)
Balance at end of period	$	881		$	3,361		$	1,962

Schedule Of Additional Information Related To Unrecognized Uncertain Tax Positions

Additional information related to unrecognized uncertain tax positions since January 1, 2017 is summarized below:



	Years Ended December 31,
(In thousands)	2019			2018			2017
Gross unrecognized tax benefits on uncertain tax positions (reflected in current income tax, other noncurrent liability accounts, or deferred tax assets in the balance sheet)	$	881		$	3,361		$	1,962
Deferred income tax assets related to unrecognized tax benefits on uncertain tax positions (reflected in deferred income tax accounts in the balance sheet)	(163		)	(211		)	(153		)
Net unrecognized tax benefits on uncertain tax positions, which would impact the effective tax rate if recognized	718			3,150			1,809
Interest and penalties accrued on deductions taken relating to uncertain tax positions (approximately $(144), $107 and $(1) reflected in income tax expense in the income statement in 2019, 2018 and 2017, respectively, with the balance shown in current income tax and other noncurrent liability accounts in the balance sheet)	100			243			136
Related deferred income tax assets recognized on interest and penalties	(23		)	(56		)	(32		)
Interest and penalties accrued on uncertain tax positions net of related deferred income tax benefits, which would impact the effective tax rate if recognized	77			187			104
Total net unrecognized tax benefits on uncertain tax positions reflected in the balance sheet, which would impact the effective tax rate if recognized	$	795		$	3,337		$	1,913