Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax (Benefit)/Expense

(in thousands)	2015	2014	2013

Income tax based on income from continuing operations, at estimated tax rates of 32%, 34%, and 49%, respectively	$16,388	$25,703	$15,172
Pension plan settlements	-	(3,194)	(-)
Income tax before discrete items	16,388	22,509	15,172

Discrete tax (benefit)/expense:
Worthless stock deduction	(28,553)	-	-
Repatriation of non-U.S. prior years' earnings	-	2,210	618
Provision for/resolution of tax audits and contingencies, net	6,500	744	2,643
Adjustments to prior period tax liabilities	(867)	397	(942)
Provision for/adjustment to beginning of year valuation allowances	75	(109)	(3,741)
Enacted tax legislation	670	-	(282)
Other discrete tax adjustments, net	-	-	(96)
Total income tax (benefit)/expense	($5,787)	$25,751	$13,372

Schedule of Income/(Loss) From Continuing Operations

(in thousands)	2015	2014	2013
Income/(loss) before income taxes:
U.S.	($7,211)	$4,993	$14,395
Non-U.S.	58,689	62,507	16,681
	$51,478	$67,500	$31,076

Income tax provision:

Current:
Federal	$-	$1,874	$3,508
State	1,993	1,102	2,301
Non-U.S.	20,842	17,474	14,957
	$22,835	$20,450	$20,766

Deferred:
Federal	($34,135)	($1,707)	$1,723
State	(40)	(495)	(180)
Non-U.S.	5,553	7,503	(8,937)
	($28,622)	$5,301	($7,394)

Total income tax (benefit)/expense	($5,787)	$25,751	$13,372

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

(in thousands)	2015	2014	2013
Net effect of temporary differences	($7,615)	($1,667)	($334)
Foreign tax credits	(17,874)	(481)	2,378
Retirement benefits	1,844	1,438	1,482
Net impact to operating loss carryforwards	(5,722)	6,120	(6,897)
Enacted changes in tax laws and rates	670	(-)	(282)
Adjustments to beginning-of-the-year valuation
allowance balance for changes in circumstances	75	(109)	(3,741)
Total	($28,622)	$5,301	($7,394)

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

	2015		2014		2013
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	2.4		1.7		4.9
Non-U.S. local income taxes	4.1		4.0		8.7
Foreign adjustments and rate differential	(6.2)		(10.2)		0.2
Net U.S. tax on non-U.S. earnings and foreign withholdings	(1.8)		8.0		5.3
Provision for/resolution of tax audits and contingencies, net	12.6		1.0		8.5
Research and development and other tax credits	(2.4)		(1.6)		(3.8)
Adjustment to beginning of year valuation allowances	0.1		(0.2)		(12.0)
Worthless stock deduction	(55.5	)	-		-
Other	0.5		0.4		(3.8)
Effective income tax rate	(11.2)	%	38.1	%	43.0	%

Schedule of Deferred Tax Assets and Liabilities

	U.S.		Non-U.S.
	2015	2014	2015	2014
(in thousands)
Current deferred tax assets:
Accounts receivable	$-	$1,597	$-	$1,537
Inventories	-	343	-	1,240
Other	-	2,662	-	3,574
Current deferred tax assets
before valuation allowance	$-	$4,602	$-	$6,351
Less: valuation allowance	-	-	-	(497)
Total current deferred tax assets	$-	$4,602	$-	$5,854

Noncurrent deferred tax assets:
Accounts receivable	1,392	-	1,304	-
Inventories	897	-	1,750	-
Deferred compensation	6,714	5,981	-	-
Depreciation and amortization	10,323	3,575	4,882	4,460
Postretirement benefits	26,475	28,344	4,138	4,804
Tax loss carryforwards	2,682	1,358	27,134	34,980
Tax credit carryforwards	42,851	24,426	1,740	1,772
Other	10,222	2,939	3,503	428
Noncurrent deferred tax assets
before valuation allowance	101,556	66,623	44,451	46,444

Less: valuation allowance	-	-	(24,439)	(21,363)
Total noncurrent deferred tax assets	101,556	66,623	20,012	25,081

Total deferred tax assets	$101,556	$71,225	$20,012	$30,935

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

Noncurrent deferred tax liabilities:
Unrepatriated foreign earnings	1,157	-	-	-
Depreciation and amortization	10,309	11,587	3,174	3,106
Postretirement benefits	-	-	2,003	1,917
Deferred Gain	7,559	8,396	-	-
Branch losses subject to recapture	-	-	918	11,369
Other	-	-	3,245	1,888
Total noncurrent deferred tax liabilities	19,025	19,983	9,340	18,280
Total deferred tax liabilities	19,025	23,662	9,340	18,889

Net deferred tax asset	$82,531	$47,563	$10,672	$12,046

Schedule of amounts previously reported in the 2014 Consolidated Balance Sheet which would have been increased/(decreased)

	As of December
(in thousands)	31, 2014
Current assets: Income taxes prepaid and deferred	($6,743)
Noncurrent asset: Income taxes receivable and deferred	13,657
Current liabilities: Income taxes payable and deferred	(575)
Noncurrent liabilities : Deferred taxes and other credits	7,489
Total	$-

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits


(in thousands)	2015	2014	2013

Unrecognized tax benefits balance at January 1	$19,509	$12,538	$24,386

Increase in gross amounts of tax positions related to prior years	2,315	14,699	2,121

Decrease in gross amounts of tax positions related to prior years	(145)	(67)	-

Increase in gross amounts of tax positions related to current year	79	1,077	2,622

Decrease due to settlements with tax authorities	(42)	(32)	(16,721)

Decrease due to lapse in statute of limitations	(90)	(6,775)	(-)

Currency translation	(2,020)	(1,931)	130

Unrecognized tax benefits balance at December 31	$19,606	$19,509	$12,538

Schedule of Current Income Taxes Prepaid and Deferred


(in thousands)	2015	2014
Prepaid taxes	$2,417	$-
Taxes receivable	510	-
Deferred income taxes	-	6,743
Total current income taxes prepaid and deferred	$2,927	$6,743

Schedule of Non-Current Income Taxes Receivable and Deferred

(in thousands)	2015	2014
Deferred income taxes	$105,792	$59,022
Taxes receivable	3,153	10,518
Total noncurrent income taxes receivable and deferred	$108,945	$69,540

Schedule of Current Income Taxes Payable and Deferred

(in thousands)	2015	2014
Taxes payable	$7,090	$2,211
Deferred income taxes	-	575
Total current income taxes payable and deferred	$7,090	$2,786

Schedule of Noncurrent Deferred Taxes and Other Liabilities

(in thousands)	2015	2014
Deferred income taxes	$12,589	$5,583
Other liabilities	1,565	1,580
Total noncurrent deferred taxes and other liabilities	$14,154	$7,163