Note 12 - Income Taxes

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

	Years Ended December 31,
	2013		2012			2011

United States	$	13,015	$	(38,375	)	$	9,326
Foreign		7,105		3,885			10,783

Total	$	20,120	$	(34,490	)	$	20,109

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

	Years Ended December 31,
	2013		2012			2011
Current:
Federal	$	505	$	(2,601	)	$	104
State		419		484			(299	)
Foreign		1,855		2,014			2,335
		2,779		(103	)		2,140
Deferred:
Federal		1,977		(8,676	)		3,365
State		905		(2,319	)		985
Foreign		1,241		226			(5,793	)
		4,123		(10,769	)		(1,443	)

Total	$	6,902	$	(10,872	)	$	697

The Company’s effective tax rate on continuing operations for the year ended December 31, 2013 is 34.3 percent as compared with 31.5 percent for 2012. The current year’s effective tax rate increase over the prior year was primarily the result of changes in valuation allowances offset by the utilization of tax credits during the year.

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

	Years ended December 31,
	2013			2012			2011

Income taxes at U.S. Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign rate differential		(15.6	)		7.9			(9.4	)
Valuation allowances		14.4			(6.1	)		(32.0	)
Nondeductible expenses		6.5			(3.6	)		7.2
Tax credits		(4.7	)		1.3			(2.2	)
Changes in estimates related to prior years		(4.5	)		(0.3	)		0.4
State income taxes		3.6			3.5			1.9
Uncertain tax positions		(2.6	)		(1.3	)		0.9
Others, net		2.2			(4.9	)		1.7

		34.3	%		31.5	%		3.5	%

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

		December 31,
		2013			2012
Deferred income tax assets:
Operating loss carryforwards	$	19,010		$	27,492
Multiemployer pension withdrawal liability		12,427			12,075
Income tax credit carryforwards		7,944			8,051
Capital loss carryforwards		5,353			6,029
Accruals and reserves not currently deductible		4,516			3,357
Deferred expenses		1,981			1,701
Restructuring reserves		1,462			2,201
Other		3,125			4,475
Deferred income tax assets		55,818			65,381
Valuation allowances		(23,864	)		(36,099	)

Deferred income tax assets, net		31,954			29,282

Deferred income tax liabilities:
Domestic subsidiary stock		(12,525	)		(8,208	)
Depreciation and amortization		(11,174	)		(7,544	)
Intangible assets		(6,046	)		(5,163	)
Inventory		(4,370	)		(5,286	)
Other		(1,368	)		(1,082	)

Deferred income tax liabilities		(35,483	)		(27,283	)

Net deferred tax asset (liability)	$	(3,529	)	$	1,999

As of December 31, 2013, the Company has U.S. state net operating loss carryforwards of $62,488, foreign net operating loss carryforwards of $62,708, foreign capital loss carryforwards of $26,639, and various U.S. and non–U.S. income tax credit carryforwards of $3,164 and $4,780, respectively, which will be available to offset future income tax liabilities. If not used, 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 $23,864 at December 31, 2013. The Company has total foreign tax credit carryforwards of $2,823, offset by a valuation allowance of $2,035 in 2013. 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 $788 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 $59,769 and $42,943 at December 31, 2013 and 2012, 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 $750 to $1,700. Of the total amount of unrecognized tax benefits of $1,758, approximately $1,620 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, 2013 and 2012, the Company recognized $(176) and $81 in net interest (benefit) expense, respectively. The Company had approximately $178 and $360 of accrued interest expense and penalties for December 31, 2013, and 2012, respectively.

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

	2013			2012			2011

Balance at January 1	$	2,093		$	1,362		$	4,249
Reductions related to settlements		--			(31	)		--
Additions related to tax positions in current year		351			--			181
Additions related to tax positions in prior years		162			888			91
Reductions due to statute closures		(383	)		(141	)		(3,184	)
Reductions for tax positions in prior years		(444	)		--			--
Foreign currency translation		(21	)		15			25

Balance at December 31	$	1,758		$	2,093		$	1,362