Provision for Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Provision for Income Taxes

Schedule of components of provision for income taxes

	Year Ended December 31
(Dollars in thousands)	2013			2012			2011
Current
Federal	$	6,180		$	9,039		$	3,338
State and local	1,739			526			462
Foreign	8,632			4,056			12
	16,551			13,621			3,812
Deferred
Federal	5,950			(47		)	13,018		(1)
State and local	(248		)	178			597
Foreign	(767		)	312			(261		)
	4,935			443			13,354
Provision for income taxes	$	21,486		$	14,064		$	17,166

(1)$5.5 million relates to the reversal of indirect benefits on uncertain tax benefits which lapsed due to the statute of limitations.

Schedule of the differences between U.S. federal statutory tax rate and the effective income tax rate

	Year Ended December 31
	2013		2012		2011
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal income tax benefit	0.8		2.0		2.1
Tax rate differential on foreign income	(1.5	)	(2.0	)	(1.0	)
Nonrecurring adjustments related to sale of foreign subsidiary	(2.2	)	2.8		—
Permanent tax differences	(1.4	)	(1.9	)	(1.0	)
Valuation allowance	1.5		1.5		—
Tax statute expiration	(0.6	)	(0.8	)	(5.8	)
Change in uncertain tax positions	0.3		0.6		0.6
Other — net	0.1		0.5		0.5
Effective income tax rate	32.0	%	37.7	%	30.4	%

Schedule of gross operating loss carryforwards and tax credit carryforwards

	Amount
Type	(Thousands)		Expiration Date
Foreign tax credits	$	1,063	2017
Capital loss carryforwards	770		2018
State tax credits(2)	2,476		2018-2027
Operating loss carryforwards — federal	746		2029
Operating loss carryforwards — state(1)	20,023		2014 – 2033
Operating loss carryforwards — foreign	3,465		2017, 2018 – None(3)

(1)Of the total state operating loss-carryforwards, approximately 88% expire in 2020 or later.

(2)Of the total state tax credit carryforwards, approximately 99% expire in 2023 or later.

(3) Of the total foreign tax credit carryforwards, approximately 6% have no expiration.

Schedule of components of deferred taxes

	December 31
(Dollars in thousands)	2013			2012
Deferred tax assets(1)
Net operating loss and credit carryforwards(2)	$	5,548		$	5,263
Accruals	11,198			10,957
Inventories	12,271			8,636
Pensions	4,725			15,892
Valuation allowance	(988		)	(1,146		)
Total deferred tax assets	32,754			39,602
Deferred tax liabilities
Property, plant and equipment	$	31,951		$	24,129
Goodwill and other intangible assets	5,879			6,308
U.S. liability on Belgian and German net deferred tax assets	1,248			669
Total deferred tax liabilities	39,078			31,106
Net deferred tax asset (liability)	$	(6,324	)	$	8,496

(1)Uncertain tax liabilities of approximately $0.3 million and $0.2 million partially offset the net operating losses and credit carryforwards in 2013 and 2012, respectively.

(2)Net indirect benefits on uncertain tax liabilities of approximately $1.0 million are included in the U.S. net operating loss and credit carryforwards in each 2013and 2012.

Schedule of reconciliation of the unrecognized income tax benefits

(Dollars in thousands)	2013			2012			2011
Balance at January 1	$	4,141		$	4,078		$	11,215
Gross increases for tax positions of prior years	—			53			252
Gross decreases for tax positions of prior years	(438		)	—			(84		)
Gross increases for tax positions of current year	122			647			562
Lapse of statute of limitations	(390		)	(637		)	(7,867		)
Balance at December 31	$	3,435		$	4,141		$	4,078

Summary of tax years that remain subject to examination for the major jurisdictions where the Company conducts business

Jurisdiction	Years
United States	2003, 2005, 2008, 2010 – 2013
Kentucky	2009 – 2013
Pennsylvania	2010 – 2013
Belgium	2011 – 2013
Canada	2009 – 2013
Germany	2010 – 2013
United Kingdom	2010 – 2013
Japan	2008 – 2013