Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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)	2014			2013		2012
United States	$	(15,488	)	$	23,211	$	(17,030	)
Non-U.S.	29,018			18,489		29,705
Total income before income taxes	$	13,530		$	41,700	$	12,675

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)	2014			2013		2012
Current:
U.S. federal	$	59		$	988	$	(18	)
Non-U.S.	10,180			8,548		9,194
U.S. state and local	157			617		(72		)
Total current income tax provision (benefit)	10,396			10,153		9,104
Deferred:
U.S. federal	227			564		1,264
Non-U.S.	(2,066		)	2,517		(4,658		)
U.S. state and local	10			7		(1		)
Total deferred income tax provision (benefit)	(1,829		)	3,088		(3,395		)
Total:
U.S. federal	286			1,552		1,246
Non-U.S.	8,114			11,065		4,536
U.S. state and local	167			624		(73		)
Total income tax provision (benefit)	$	8,567		$	13,241	$	5,709

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)	2014			2013
Deferred income tax assets:
Pension	$	12,317		$	—
Non-pension postretirement benefits	24,326			22,749
Other accrued liabilities	18,726			18,084
Receivables	1,798			1,467
Net operating loss and charitable contribution carry forwards	33,531			32,806
Tax credits	10,320			10,953
Total deferred income tax assets	101,018			86,059
Deferred income tax liabilities:
Property, plant and equipment	20,986			22,053
Inventories	5,037			4,762
Pension	—			3,031
Intangibles and other assets	7,581			10,238
Total deferred income tax liabilities	33,604			40,084
Net deferred income tax asset before valuation allowance	67,414			45,975
Valuation allowance	(66,486		)	(46,048		)
Net deferred income tax asset (liability)	$	928		$	(73	)

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)	2014			2013
Current deferred income tax asset	$	4,888		$	5,840
Non-current deferred income tax asset	5,566			5,759
Current deferred income tax liability	(3,633		)	—
Non-current deferred income tax liability	(5,893		)	(11,672		)
Net deferred income tax asset (liability)	$	928		$	(73	)

Valuation Allowance Activity

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

Year ended December 31, (dollars in thousands)	2014		2013			2012
Beginning balance	$	46,048	$	77,629		$	76,452
Charge (benefit) to provision for income taxes	3,507		(9,302		)	(1,805		)
Charge (benefit) to other comprehensive income	16,931		(22,279		)	2,982
Ending balance	$	66,486	$	46,048		$	77,629

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,	2014			2013			2012
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	(10.5	)		(7.9	)		(43.5	)
U.S. state and local income taxes, net of related U.S. federal income taxes	0.8			1.0			(0.4	)
U.S. federal credits	—			—			(0.9	)
Permanent adjustments	(9.2	)		4.2			60.6
Foreign withholding taxes	14.8			4.8			12.0
Valuation allowance	42.9			(16.8	)		(10.6	)
Unrecognized tax benefits	(9.3	)		(0.7	)		(3.1	)
Deferred tax impact from 2014 Mexican tax reform	—			10.2			—
Other	(1.2	)		2.0			(4.1	)
Consolidated effective income tax rate	63.3		%	31.8		%	45.0		%

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)	2014			2013			2012
Beginning balance	$	1,312		$	1,496		$	1,266
Additions based on tax positions related to the current year	—			325			—
Reductions for tax positions of prior years	(325		)	—			—
Changes due to lapse of statute of limitations	(609		)	(509		)	230
Ending balance	$	378		$	1,312		$	1,496

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)	2014			2013			2012
Impact on the effective tax rate, if unrecognized tax benefits were recognized	$	306		$	1,198
Interest and penalties, net of tax benefit, accrued in the Consolidated Balance Sheets	$	174		$	537
Interest and penalties expense (benefit) recognized in the Consolidated Statements of Operations	$	(363	)	$	(124	)	$	(753	)

Tax Years Subject to Income Tax Examination

As of December 31, 2014, the tax years that remained subject to examination by major tax jurisdictions were as follows:

Jurisdiction	Open Years
Canada	2011	–	2014
China	2011	–	2014
Mexico	2009	–	2014
Netherlands	2013	–	2014
Portugal	2010	–	2014
United States (excluding 2009 which is closed)	2008	–	2014