Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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)	2015		2014			2013
United States	$	27,146	$	(15,488	)	$	23,211
Non-U.S.	971		29,018			18,489
Total income before income taxes	$	28,117	$	13,530		$	41,700

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)	2015			2014			2013
Current:
U.S. federal	$	300		$	59		$	988
Non-U.S.	9,142			10,180			8,548
U.S. state and local	162			157			617
Total current income tax provision (benefit)	9,604			10,396			10,153
Deferred:
U.S. federal	(44,068		)	227			564
Non-U.S.	(3,078		)	(2,066		)	2,517
U.S. state and local	(674		)	10			7
Total deferred income tax provision (benefit)	(47,820		)	(1,829		)	3,088
Total:
U.S. federal	(43,768		)	286			1,552
Non-U.S.	6,064			8,114			11,065
U.S. state and local	(512		)	167			624
Total income tax provision (benefit)	$	(38,216	)	$	8,567		$	13,241

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)	2015			2014
Deferred income tax assets:
Pension	$	9,644		$	12,317
Non-pension postretirement benefits	21,751			24,326
Other accrued liabilities	20,432			18,726
Receivables	2,341			1,798
Net operating loss and charitable contribution carry forwards	25,754			33,531
Tax credits	10,245			10,320
Total deferred income tax assets	90,167			101,018
Deferred income tax liabilities:
Property, plant and equipment	22,882			20,986
Inventories	2,378			5,037
Intangibles and other	7,883			7,581
Total deferred income tax liabilities	33,143			33,604
Net deferred income tax asset before valuation allowance	57,024			67,414
Valuation allowance	(11,184		)	(66,486		)
Net deferred income tax asset (liability)	$	45,840		$	928

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)	2015			2014
Current deferred income tax asset	$	—		$	4,888
Non-current deferred income tax asset	48,662			5,566
Current deferred income tax liability	—			(3,633		)
Non-current deferred income tax liability	(2,822		)	(5,893		)
Net deferred income tax asset (liability)	$	45,840		$	928

Valuation Allowance Activity

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

Year ended December 31, (dollars in thousands)	2015			2014		2013
Beginning balance	$	66,486		$	46,048	$	77,629
Charge (benefit) to provision for income taxes	(49,877		)	3,507		(9,302		)
Charge (benefit) to other comprehensive income	(5,425		)	16,931		(22,279		)
Ending balance	$	11,184		$	66,486	$	46,048

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,	2015			2014			2013
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	(0.9	)		(25.9	)		(6.4	)
U.S. state and local income taxes, net of related U.S. federal income taxes	(2.0	)		0.8			1.0
Permanent adjustments	7.5			20.1			0.1
Foreign withholding taxes	4.7			14.8			4.8
Valuation allowance	(174.8	)		42.9			(16.8	)
Unrecognized tax benefits	(0.3	)		(9.3	)		(0.7	)
Impact of foreign exchange	(19.8	)		(14.0	)		2.6
Tax effect of intercompany capitalization	11.7			—			—
Impact of legislative changes	—			—			10.2
Other	3.0			(1.1	)		2.0
Consolidated effective income tax rate	(135.9	)	%	63.3		%	31.8		%

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)	2015			2014			2013
Beginning balance	$	378		$	1,312		$	1,496
Additions based on tax positions related to the current year	293			—			325
Reductions for tax positions of prior years	—			(325		)	—
Changes due to lapse of statute of limitations	(240		)	(609		)	(509		)
Ending balance	$	431		$	378		$	1,312

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)	2015			2014			2013
Impact on the effective tax rate, if unrecognized tax benefits were recognized	$	378		$	306		$	1,198
Interest and penalties, net of tax benefit, accrued in the Consolidated Balance Sheets	$	28		$	174		$	537
Interest and penalties expense (benefit) recognized in the Consolidated Statements of Operations	$	(146	)	$	(363	)	$	(124	)

Tax Years Subject to Income Tax Examination

As of December 31, 2015, the tax years that remained subject to examination by major tax jurisdictions were as follows:

Jurisdiction	Open Years
Canada	2011	–	2015
China	2012	–	2015
Mexico	2010	–	2015
Netherlands	2014	–	2015
Portugal	2008	–	2015
United States (excluding 2009 which is closed)	2008	–	2015