Income Taxes

(Loss) income before income taxes and equity in earnings of joint venture generated by the Company’s U.S. and non-U.S. operations were as follows:



	2013			2012			2011
U.S	$	(55,611	)	$	(28,398	)	$	(26,321	)
Non-U.S.	(5,133		)	12,856			11,708

The Company’s income tax (benefit) expense is comprised of the following:



	2013			2012			2011
Federal
current	$	(260	)	$	(842	)	$	(1,204	)
deferred	(16,913		)	(1,542		)	(2,041		)
State
current	1,312			629			461
deferred	(2,949		)	401			(1,218		)
Foreign
current	3,242			2,927			2,970
deferred	(4,227		)	(143		)	(94		)
	$	(19,795	)	$	1,430		$	(1,126	)

The reconciliation between the Company’s effective tax rate on income or loss and the U.S. federal income tax rate of 35% is as follows:



	2013			2012			2011
Federal income tax at statutory rates	$	(21,260	)	$	(5,439	)	$	(5,115	)
State income taxes, net of federal income tax benefits	(1,757		)	22			(1,007		)
Permanent items:
Dividends received deductions	(766		)	(766		)	—
Convertible debt mark-to-market - non-deductible	—			6,206			1,551
Other permanent differences	(124		)	480			662
Federal and state income tax on joint venture	2,670			2,766			4,478
Rate differential on foreign income	812			(1,680		)	(726		)
Unrecognized tax benefits	—			(557		)	(576		)
Audit settlements	—			218			—
State rate changes	87			(68		)	(478		)
Other	543			248			85
Income tax (benefit) expense	$	(19,795	)	$	1,430		$	(1,126	)
Effective income tax expense rate	32.6		%	(9.2		)%	7.7		%

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	2013		2012
Deferred tax assets:
Postretirement benefits	$	2,526	$	3,830
Deferred compensation	1,768		1,940
Restructuring related and other reserves	1,055		1,452
Alternative minimum tax and net operating loss carryforward	24,072		3,487
Other, net	69		—
Total deferred tax assets	$	29,490	$	10,709
Deferred tax liabilities:
Depreciation	$	8,026	$	8,032
Inventory	319		1,146
Pension	5,954		4,240
Intangible assets and goodwill	20,121		24,224
Other, net	2,561		1,665
Total deferred tax liabilities	36,981		39,307
Net deferred tax liabilities	$	7,491	$	28,598

As of December 31, 2013, the Company has federal, state and foreign net operating losses ("NOLs") as follows:



	Amount		Expiration Period
Federal	$	43,158	2021 to 2023
State	50,520		2015 to 2032
Foreign	8,428		(a)

(a) Foreign NOLs of $1,060 expire in 2014 to 2018 and $7,368 do not expire.

The Company evaluates the recoverability of its deferred tax assets by assessing the adequacy of future taxable income from all sources, including the reversal of deferred tax liabilities, forecasted operating earnings and tax planning strategies. Based on all current available evidence, the Company has determined that it is more likely than not that the federal, state and foreign NOLs will be realized due to having sufficient earnings in future years to utilize the NOL carryforwards prior to expiration. To the extent that the Company does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance would be established.

The following table shows the net change in the Company’s unrecognized tax benefits:



	2013			2012			2011
Balance as of January 1	$	105		$	861		$	1,465
Increases (decreases) in unrecognized tax benefits:
Due to tax positions taken in prior years	—			—			91
Due to tax positions taken during the current year	60			45			60
Due to settlement with tax authorities	—			(757		)	—
Due to expiration of statute	(60		)	(44		)	(755		)
Balance as of December 31	$	105		$	105		$	861

Unrecognized tax benefits of $105, $105 and $861 would impact the effective tax rate if recognized as of December 31, 2013, 2012 and 2011, respectively. The accrued interest and penalties related to unrecognized tax benefits were insignificant at December 31, 2013 and 2012. The interest and penalties recorded by the Company were insignificant for the years ended December 31, 2013, 2012 and 2011.

During 2013, 2012 and 2011, statutes expired on certain unrecognized tax benefits of the Company. The reversal of the reserve of these unrecognized tax benefits was recorded as a component of overall income tax benefit for the years ended December 31, 2013, 2012 and 2011, respectively.

The Company or its subsidiaries files income tax returns in the United States federal jurisdiction, 29 states, and 7 foreign jurisdictions.

The following tax years remain open to examination by the major taxing jurisdictions to which the Company is subject:



U.S. Federal	2010 to 2013
U.S. States	2009 to 2013
Foreign	2008 to 2013

During the second quarter of 2012, audits of the Company’s 2008 and 2009 U.S. federal income tax returns were concluded with no significant assessment. During 2011, the Company recognized $423 of tax benefits, excluding interest, due to the expiration of the statute of limitations for uncertain tax positions taken in prior years. Due to the potential for resolution of the examination or expiration of statutes of limitations, it is reasonably possible that the Company’s gross unrecognized tax benefits may change within the next 12 months by a range of zero to $45.

The Company received its 2012 federal income tax refund of $2,590 during October 2013, its 2010 federal tax refund of $2,025 during February 2012 and its 2009 federal income tax refund of $6,344 during January 2011.