Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Components of Income (Loss) before Income Taxes, Domestic and Foreign

The provisions for income taxes were calculated based on the following components of income (loss) before income taxes:

Year ended December 31, (dollars in thousands)	2013		2012			2011
United States	$	23,211	$	(17,030	)	$	(6,662	)
Non-U.S.	18,489		29,705			31,946
Total income before income taxes	$	41,700	$	12,675		$	25,284

Current and Deferred Provisions (Benefit) for Income Taxes

The current and deferred provisions (benefit) for income taxes were:

Year ended December 31, (dollars in thousands)	2013		2012			2011
Current:
U.S. federal	$	988	$	(18	)	$	484
Non-U.S.	8,548		9,194			5,732
U.S. state and local	617		(72		)	100
Total current income tax provision (benefit)	10,153		9,104			6,316
Deferred:
U.S. federal	564		1,264			(400		)
Non-U.S.	2,517		(4,658		)	(4,294		)
U.S. state and local	7		(1		)	21
Total deferred income tax provision (benefit)	3,088		(3,395		)	(4,673		)
Total:
U.S. federal	1,552		1,246			84
Non-U.S.	11,065		4,536			1,438
U.S. state and local	624		(73		)	121
Total income tax provision (benefit)	$	13,241	$	5,709		$	1,643

Components of Deferred Income Tax Assets and Liabilities

The significant components of our deferred income tax assets and liabilities are as follows:

December 31, (dollars in thousands)	2013			2012
Deferred income tax assets:
Pension	$	—		$	16,526
Non-pension postretirement benefits	22,749			27,198
Other accrued liabilities	18,084			20,213
Receivables	1,467			1,445
Net operating loss and charitable contribution carry forwards	32,806			45,592
Tax credits	10,953			9,770
Total deferred income tax assets	86,059			120,744
Deferred income tax liabilities:
Property, plant and equipment	22,053			23,196
Inventories	4,762			4,377
Pension	3,031			—
Intangibles and other assets	10,238			12,392
Total deferred income tax liabilities	40,084			39,965
Net deferred income tax asset before valuation allowance	45,975			80,779
Valuation allowance	(46,048		)	(77,629		)
Net deferred income tax asset (liability)	$	(73	)	$	3,150

Balance Sheet Locations of Deferred Tax Assets and Liabilities

The net deferred income tax assets and liabilities at December 31 of the respective year-ends were included in the Consolidated Balance Sheets as follows:

December 31, (dollars in thousands)	2013			2012
Current deferred income tax asset	$	5,840		$	4,070
Non-current deferred income tax asset	5,759			9,830
Current deferred income tax liability	—			(3,213		)
Non-current deferred income tax liability	(11,672		)	(7,537		)
Net deferred income tax asset (liability)	$	(73	)	$	3,150

Valuation Allowance Activity

The valuation allowance activity for the years ended December 31 is as follows:

Year ended December 31, (dollars in thousands)	2013			2012			2011
Beginning balance	$	77,629		$	76,452		$	72,327
Charge (benefit) to provision for income taxes	(9,302		)	(1,805		)	(2,313		)
Charge (benefit) to other comprehensive income	(22,279		)	2,982			6,438
Ending balance	$	46,048		$	77,629		$	76,452

Reconciliation of Statutory to Effective Income Tax Rate

Reconciliation from the statutory U.S. federal income tax rate to the consolidated effective income tax rate was as follows:

Year ended December 31,	2013			2012			2011
Statutory U.S. federal income tax rate	35.0		%	35.0		%	35.0		%
Increase (decrease) in rate due to:
Non-U.S. income tax differential	(7.9	)		(43.5	)		(14.6	)
U.S. state and local income taxes, net of related U.S. federal income taxes	1.0			(0.4	)		0.3
U.S. federal credits	—			(0.9	)		(0.3	)
Permanent adjustments	4.2			60.6			(18.6	)
Foreign withholding taxes	4.8			12.0			6.7
Valuation allowance	(16.8	)		(10.6	)		3.7
Deferred tax impact from 2014 Mexican tax reform	10.2			—			—
Other	1.3			(7.2	)		(5.7	)
Consolidated effective income tax rate	31.8		%	45.0		%	6.5		%

Income Tax Payments

Income tax payments consisted of the following:

Year ended December 31, (dollars in thousands)	2013		2012		2011
Total income tax payments, net of refunds	$	13,916	$	4,399	$	15,124
Less: credits or offsets	3,061		997		4,894
Cash paid, net	$	10,855	$	3,402	$	10,230

Change in Unrecognized Tax Benefits

A reconciliation of the beginning and ending gross unrecognized tax benefits, excluding interest and penalties, is as follows:

(dollars in thousands)	2013			2012		2011
Beginning balance	$	1,496		$	1,266	$	1,129
Additions based on tax positions related to the current year	325			—		—
Changes due to lapse of statute of limitations	(509		)	230		137
Ending balance	$	1,312		$	1,496	$	1,266

Other Unrecognized Tax Benefits Disclosures

We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. Other disclosures relating to unrecognized tax benefits are as follows:

December 31, (dollars in thousands)	2013			2012			2011
Impact on the effective tax rate, if unrecognized tax benefits were recognized	$	1,198		$	1,382
Interest and penalties, net of tax benefit, accrued in the Consolidated Balance Sheets	$	537		$	662
Interest and penalties expense (benefit) recognized in the Consolidated Statements of Operations	$	(124	)	$	(753	)	$	(288	)

Tax Years Subject to Income Tax Examination

As of December 31, 2013, the tax years that remained subject to examination by major tax jurisdictions were as follows:

Jurisdiction	Open Years
Canada	2010	–	2013
China	2010	–	2013
Mexico	2008	–	2013
Netherlands	2012	–	2013
Portugal	2009	–	2013
United States	2010	–	2013