Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense

(in thousands)	2014	2013	2012

Income tax based on income from continuing operations, at estimated tax rates of 34%, 49%, and 39%, respectively	$25,703	$15,172	$19,769
Pension plan settlements	(3,194)	-	(39,460)
Income tax before discrete items	22,509	15,172	(19,691)

Discrete tax expense/(benefit):
Repatriation of non-U.S. prior years' earnings	2,210	618	-
Provision for/resolution of tax audits and contingencies, net	744	2,643	(2,747)
Adjustments to prior period tax liabilities	397	(942)	(1,471)
Provision for/adjustment to beginning of year valuation allowances	(109)	(3,741)	(2,442)
Enacted tax legislation	-	(282)	(973)
Other discrete tax adjustments, net	-	(96)	(199)
Total income tax expense/(benefit)	$25,751	$13,372	($27,523)

Schedule of Income/(Loss) From Continuing Operations

(in thousands)	2014	2013	2012
Income/(loss) before income taxes:
U.S.	$4,993	$14,395	($84,624)
Non-U.S.	62,507	16,681	16,258
	$67,500	$31,076	($68,366)

Income tax provision:

Current:
Federal	$1,874	$3,508	($20,123)
State	1,102	2,301	(1,212)
Non-U.S.	17,474	14,957	12,413
	$20,450	$20,766	($8,922)

Deferred:
Federal	($1,707)	1,723	($12,851)
State	(495)	(180)	(1,538)
Non-U.S.	7,503	8,937)	(4,212)
	$5,301	($7,394)	($18,601)

Total provision for income taxes	$25,751	$13,372	($27,523)

Schedule of significant components of deferred income tax expense/(benefit)

(in thousands)	2014	2013	2012
Net effect of temporary differences	($1,667)	($334)	($7,557)
Foreign tax credits	(481)	2,378	9,468
Postretirement benefits	1,438	1,482	(18,337)
Net impact to operating loss carryforwards	6,120	(6,897)	1,240
Enacted changes in tax laws and rates	-	(282)	(973)
Adjustments to beginning-of-the-year valuation
allowance balance for changes in circumstances	(109)	(3,741)	(2,442)
Total	$5,301	($7,394)	($18,601)

Reconciliation of the U.S. Federal Statutory Tax Rate to the Company's Effective Income Tax Rate

	2014		2013		2012
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	1.7		4.9		3.5
Non-U.S. local income taxes	4.0		8.7		0.5
Foreign adjustments and rate differential	(10.2)		0.2		(1.7)
U.S. tax on non-U.S. earnings and foreign withholdings	8.0		5.3		(1.2)
Provision for/resolution of tax audits and contingencies, net	1.0		8.5		4.0
Research and development and other tax credits	(1.6)		(3.8)		0.9
Provision for/adjustment to beginning of year valuation allowances	(0.2)		(12.0)		(3.7)
Other	0.4		(3.8)		3.0
Effective income tax rate	38.1	%	43.0	%	40.3	%

Schedule of amounts previously reported in the 2013 Consolidated Balance Sheet, the correction, and the 2013 amounts in the accompanying Consolidated Balance Sheet

As of December 31, 2013 (in thousands)	Total deferred taxes as reported in tax footnote	Taxes receivable or payable, and tax reserves	Total as previously reported in Balance Sheet	Amount of revision	Corrected Balance sheet as revised
Assets
Deferred taxes	$13,873	$ -	$13,873	($968)	$12,905
Taxes receivable and deferred	103,185	16,427	119,612	(39,763)	79,849
Total	$117,058	$16,427	$133,485	($40,731)	$92,754

Liabilities
Taxes payable and deferred	$3,855	$1,536	$5,391	($962)	$4,429
Deferred taxes and other credits	46,690	7,786	54,476	(39,769)	14,707
Total	$50,545	$9,322	$59,867	($40,731)	$19,136

Schedule of Deferred Tax Assets and Liabilities

	U.S.		Non-U.S.
	2014	2013	2014	2013
(in thousands)
Current deferred tax assets:
Accounts receivable	$1,597	$1,526	$1,537	$2,397
Inventories	343	1,432	1,240	2,411
Tax credit carryforwards	-	1,000	-	-
Other	2,662	2,867	3,574	3,058
Current deferred tax assets
before valuation allowance	$4,602	$6,825	$6,351	$7,866
Less: valuation allowance	-	-	(497)	(818)
Total current deferred tax assets	$4,602	$6,825	$5,854	$7,048

Noncurrent deferred tax assets:
Deferred compensation	5,981	5,794	-	-
Depreciation and amortization	3,575	4,289	4,460	3,505
Postretirement benefits	28,344	28,038	4,804	4,540
Tax loss carryforwards	1,358	1,457	34,980	76,026
Tax credit carryforwards	24,426	23,992	1,772	1,508
Other	2,939	2,834	428	371
Noncurrent deferred tax assets
before valuation allowance	66,623	66,404	46,444	85,950

Less: valuation allowance	-	-	(21,363)	(49,169)
Total noncurrent deferred tax assets	66,623	66,404	25,081	36,781

Total deferred tax assets	$71,225	$73,229	$30,935	$43,829

Current deferred tax liabilities:
Unrepatriated foreign earnings	$3,679	$667	$ -	$ -
Inventories	-	-	32	1,366
Other	-	-	577	1,822
Total current deferred tax liabilities	3,679	667	609	3,188

Noncurrent deferred tax liabilities:
Depreciation and amortization	11,587	13,169	3,106	8,357
Postretirement benefits	-	-	1,917	1,377
Deferred Gain	8,396	9,013	-	-
Branch losses subject to recapture	-	-	11,369	12,380
Other	-	-	1,888	2,394
Total noncurrent deferred tax liabilities	19,983	22,182	18,280	24,508

Total deferred tax liabilities	23,662	22,849	18,889	27,696

Net deferred tax asset	$47,563	$50,380	$12,046	$16,133

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits


(in thousands)	2014	2013	2012

Unrecognized tax benefits balance at January 1	$12,538	$24,386	$27,053

Increase in gross amounts of tax positions related to prior years	14,699	2,121	9,454

Decrease in gross amounts of tax positions related to prior years	(67)	-	-

Increase in gross amounts of tax positions related to current year	1,077	2,622	381

Decrease due to settlements with tax authorities	(32)	(16,721)	(13,099)

Decrease due to lapse in statute of limitations	(6,775)	-	(20)

Currency translation	(1,931)	130	617

Unrecognized tax benefits balance at December 31	$19,509	$12,538	$24,386

Schedule of Non-Current Income Taxes Receivable and Deferred

(in thousands)	2014	2013
Income taxes receivable	$10,518	$16,427
Deferred income taxes	59,022	103,185
Total noncurrent deferred taxes and taxes receivable	$69,540	$119,612

Schedule of Current Taxes Payable and Deferred

(in thousands)	2014	2013
Taxes payable	$2,211	$1,536
Deferred income taxes	575	3,855
Total current income taxes payable and deferred	$2,786	$5,391