Note 11 - Income Taxes

The domestic and foreign components of income (loss) before income taxes are as follows:

	Years Ended December 31,
	2012			2011		2010

United States	$	(38,068	)	$	11,324	$	30,424
Foreign		3,885			10,783		11,980

Total	$	(34,183	)	$	22,107	$	42,404

The provision (benefit) for income taxes is comprised of the following:

	Years Ended December 31,
	2012			2011			2010
Current:
Federal	$	(2,688	)	$	527		$	(5,177	)
State		431			(207	)		(194	)
Foreign		2,014			2,335			4,006
		(243	)		2,655			(1,365	)
Deferred:
Federal		(8,463	)		3,598			10,347
State		(2,287	)		1,036			1,210
Foreign		226			(5,793	)		(208	)
		(10,524	)		(1,159	)		11,349

Total	$	(10,767	)	$	1,496		$	9,984

The Company's effective tax rate for the year ended December 31, 2012 is 31.5 percent as compared with 6.8 percent for 2011. The current year's effective tax rate increase over the prior year was primarily the result of tax benefits from the release of valuation allowances, net of federal and state benefits, of $6,442, during 2011.

Reconciliation between the provision (benefit) for income taxes computed by applying the United States ("U.S.") federal statutory tax rate to income (loss) before incomes taxes and the actual provision (benefit) is as follows:

	Years ended December 31,
	2012			2011			2010

Income taxes at U.S. Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign rate differential		8.0			(8.5	)		(6.5	)
Valuation allowances		(6.2	)		(29.1	)		1.7
Nondeductible expenses		(3.6	)		6.5			1.8
State income taxes		3.5			3.1			3.2
Uncertain tax positions		(1.3	)		0.8			(15.5	)
Tax credits		1.3			(2.0	)		--
Withholding tax expense		(0.6	)		0.4			4.1
Others, net		(4.6	)		0.6			(0.3	)

		31.5	%		6.8	%		23.5	%

Temporary differences and carryforwards giving rise to deferred income tax assets and liabilities are as follows:

	December 31,
	2012			2011
Deferred income tax assets:
Operating loss carryforwards	$	27,492		$	15,714
Multiemployer pension withdrawal liability		12,075			--
Income tax credit carryforwards		8,051			7,367
Capital loss carryforwards		6,029			6,258
Accruals and reserves not currently deductible		3,357			3,992
Deferred expenses		1,701			2,670
Restructuring reserves		2,201			2,055
Other		4,475			5,705
Deferred income tax assets		65,381			43,761
Valuation allowances		(36,099	)		(23,723	)

Deferred income tax assets, net		29,282			20,038

Deferred income tax liabilities:
Depreciation and amortization		(8,620	)		(5,729	)
Domestic subsidiary stock		(8,208	)		(8,447	)
Intangible assets		(5,251	)		(5,921	)
Inventory		(5,572	)		(6,990	)
Other		(1,103	)		(3,021	)

Deferred income tax liabilities		(28,754	)		(30,108	)

Net deferred tax asset (liability)	$	528		$	(10,070	)

As of December 31, 2012, the Company has U.S. federal and state net operating loss carryforwards of $1,552 and $65,715, respectively, $86,774 of foreign net operating loss carryforwards, $26,153 of foreign capital loss carryforwards, and various U.S. and non–U.S. income tax credit carryforwards of $3,307 and $4,745, respectively, which will be available to offset future income tax liabilities. If not used, $1,552 of U.S. federal net operating loss carryforwards will expire in 2023 to 2026, state net operating losses will begin to expire in 2017, and foreign net operating losses have no expiration period. Certain of these carryforwards are subject to limitations on use due to tax rules affecting acquired tax attributes, loss sharing between group members, and business continuation, and therefore the Company has established tax-effected valuation allowances against these tax benefits in the amount of $35,203 at December 31, 2012. The Company has total foreign tax credit carryforwards of $2,477, offset by a valuation allowance of $1,810 in 2012. The Company has the ability to claim a deduction for these credits prior to expiration, and thus the net carrying value of the credits of $667 assumes that a deduction would be claimed instead of a tax credit. If unutilized, these U.S. foreign tax credits will begin to expire in 2016.

The undistributed earnings of foreign subsidiaries were approximately $42,943 and $66,420 at December 31, 2012 and 2011, respectively. No income taxes are provided on the undistributed earnings because they are considered permanently reinvested. It is not practicable to estimate the additional income taxes, including applicable withholding taxes, that would be payable if such remittance of undistributed earnings occurred.

It is expected that the amount of unrecognized tax benefits that will change in the next twelve months attributable to the anticipated settlement of examinations or statute closures will be in the range of $400 to $1,000. Of the total amount of unrecognized tax benefits of $2,093, approximately $1,922 would reduce the effective tax rate.

The Company's U.S. federal income tax returns are open for examination from 2009 forward. State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. The Company has various state income tax returns in the process of examination, administrative appeals or litigation.

The Company recognizes accrued interest related to unrecognized tax benefits and penalties in income tax expense in the Consolidated Statements of Comprehensive Income (Loss). During the years ended December 31, 2012 and 2011, the Company recognized $81 and $71 in net interest expense, respectively. The Company had approximately $360 and $246 of accrued interest expense and penalties for December 31, 2012, and 2011, respectively.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	2012			2011			2010

Balance at January 1	$	1,362		$	4,249		$	16,259
Reductions related to settlements		(31	)		--			(12,055	)
Additions related to tax positions in current year		--			181			--
Additions related to tax positions in prior years		888			91			536
Reductions due to statute closures		(141	)		(3,184	)		(292	)
Reductions for tax positions in prior years		--			--			(112	)
Foreign currency translation		15			25			(87	)

Balance at December 31	$	2,093		$	1,362		$	4,249