Provision For Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Provision For Income Taxes [Abstract]

Components Of Provision For Income Taxes


	Year Ended December 31
(Dollars in thousands)	2011			2010		2009
Current
Federal	$	3,338		$	4,880	$	6,005
State and local		462			942		943
Foreign		12			2,515		2,436

		3,812			8,337		9,384

Deferred
Federal		13,018	⁽¹⁾		4,160		1,897
State and local		597			346		343
Foreign		(261	)		317		130

		13,354			4,823		2,370

Provision for income taxes	$	17,166		$	13,160	$	11,754

(1)

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

Effective Tax Rate Reconciliation


	Year Ended December 31
	2011			2010			2009
U.S. federal statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		2.1			2.1			2.3
Deferred tax related to equity investment		—			—			(1.5	)
Tax rate differential on foreign income		(1.0	)		(0.6	)		(0.8	)
Valuation allowance release		—			(7.3	)		(9.7	)
Tax statute expiration		(5.8	)		(1.7	)		(0.5	)
Change in uncertain tax positions		0.6			1.4			0.2
Other – net		(0.5	)		(1.4	)		(1.3	)

Effective income tax rate		30.4	%		27.5	%		23.7	%

Gross Operating Loss Carryforwards And Domestic Tax Credit Carryforwards


	Amount
Type	(Thousands)		Expiration Date
Foreign tax credits	$	3,317		2016 – 2017
State tax credits		1,355		2027
Operating loss carryforwards – federal		1,011		2029
Operating loss carryforwards – state⁽¹⁾		31,312		2015 – 2030
Operating loss carryforwards – foreign		187		2015 – None

(1)

Of the total state operating loss-carryforwards, approximately 84% expire in 2020 or later.

Components Of Deferred Tax Assets And Liabilities


	December 31
(Dollars in thousands)	2011		2010
Deferred tax assets⁽¹⁾
Net operating loss and credit carryforwards⁽²⁾	$	6,159	$	12,910
Accruals		10,380		11,951
Inventories		11,431		9,713
Pensions		11,303		7,720

Total deferred tax assets		39,273		42,294

Deferred tax liabilities
Property, plant and equipment	$	24,551	$	22,149
Goodwill and other intangible assets		6,454		4,719
U.S. liability on Belgian and German net deferred tax assets		1,292		479

Total deferred tax liabilities		32,297		27,347

Net deferred tax asset⁽³⁾	$	6,976	$	14,947

(1)

Uncertain tax liabilities of approximately $0.3 million and zero partially offset the net operating losses and credit carryforwards in 2011 and 2010, respectively.

(2)

Net indirect benefits on uncertain tax liabilities of approximately $1.1 million and $6.5 million are included in the U.S. net operating loss and credit carryforwards in 2011 and 2010, respectively.

(3)

A current deferred tax liability of $0.2 million and $0.1 million are included in accounts payable and accrued liabilities within the 2011 and 2010 consolidated balance sheets, respectively.

Reconciliation Of Unrecognized Income Tax Benefits


(Dollars in thousands)	2011			2010			2009
Balance at January 1	$	11,215		$	11,704		$	12,249
Gross increases for tax positions of prior years		252			878			266
Gross decreases for tax positions of prior years		(84	)		(301	)		(1,014	)
Gross increases for tax positions of current year		562			219			803
Lapse of statute of limitations		(7,867	)		(1,285	)		(141	)
Settlements		—			—			(459	)

Balance at December 31	$	4,078		$	11,215		$	11,704

Summary Of Income Tax Examinations


Jurisdiction	Years
United States		2005, 2008 – 2011
Kentucky		2007 – 2011
Pennsylvania		2008 – 2011
Belgium		2009 – 2011
Canada		2007 – 2011
Germany		2008 – 2011
UK		2008 – 2011
Japan		2006 – 2011

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

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