Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Earnings Before Income Taxes

($ in thousands)	2014		2013			2012
Domestic	$	19,205	$	(5,396	)	$	(6,184	)
Non-U.S.		20,143		23,459			20,628
Total	$	39,348	$	18,063		$	14,444

Significant Components of Income Tax Provision/(Benefit)

($ in thousands)	2014		2013		2012
Current:
Federal	$	508	$	661	$	39
State		437		671		534
Non-U.S.		6,981		4,804		5,839
Total Current		7,926		6,136		6,412
Deferred:
Federal		3,436		7,091		(1,423	)
State		154		877		(350	)
Non-U.S.		1,310		1,962		(3,687	)
Total Deferred		4,900		9,930		(5,460	)
Total provision for Income Taxes	$	12,826	$	16,066	$	952

Significant Components of Deferred Tax Assets and Liabilities

($ in thousands)	2014			2013
Postretirement benefits	$	1,953		$	1,877
Inventory reserves		1,567			1,934
Loss carry-forwards		23,095			36,373
Credit carry-forwards		16,903			15,028
Nondeductible accruals		6,336			6,126
Research expenditures		30,088			28,606
Prepaid charges		45			727
Foreign exchange loss		1,009			—
Other		4,102			5,476
Gross deferred tax assets		85,098			96,147
Depreciation		11,073			11,168
Pensions		9,462			19,177
Unrealized foreign exchange gain		—			350
Subsidiaries' unremitted earnings		—			2,774
Other		—			696
Gross deferred tax liabilities		20,535			34,165
Net deferred tax assets		64,563			61,982
Deferred tax asset valuation allowance		(12,938	)		(14,323	)
Total net deferred tax assets	$	51,625		$	47,659

Schedule of current and long-term deferred tax assets and current and long-term deferred tax liabilities

($ in thousands)	2014			2013
Current Deferred Tax Assets	$	8,708		$	9,426
Current Deferred Tax Liabilities		(8	)		(138	)
Total Current Deferred Tax Assets		8,700			9,288
Non-current Deferred Tax Assets		43,120			38,620
Non-current Deferred Tax Liabilities		(195	)		(249	)
Total Non-current Deferred Tax Assets		42,925			38,371
Total net deferred tax assets	$	51,625		$	47,659

Reconciliation of Effective Income Taxes Rate

	2014			2013			2012
Taxes at the U.S. statutory rate		35.00	%		35.00	%		35.00	%
State income taxes, net of federal income tax benefit		0.72	%		0.95	%		(0.02	)%
Non-U.S. income taxed at rates different than the U.S. statutory rate		(7.57	)%		(9.86	)%		(8.99	)%
Benefit of scheduled tax credits		(1.32	)%		(3.88	)%		—	%
Foreign source income		3.47	%		60.94	%		5.64	%
Non-deductible expenses		2.79	%		(2.42	)%		(0.97	)%
Non-U.S. adjustments to valuation allowances		(0.43	)%		8.18	%		(5.72	)%
Nontaxable foreign gain		—	%		—	%		(11.47	)%
Change in unrecognized tax benefits		—	%		0.69	%		(8.97	)%
Other		(0.08	)%		(0.65	)%		2.09	%
Effective income tax rate		32.58	%		88.95	%		6.59	%

Reconciliation of Unrecognized Tax Benefits

($ in thousands)	2014			2013
Balance at January 1	$	4,043		$	4,130
Increase related to current year tax positions		40			35
Increase related to prior year tax positions		5			35
Decrease as a result of lapse of statute of limitations		(114	)		(36	)
Decrease related to settlements with taxing authorities		(14	)		(121	)
Other Decrease		(70	)		—
Balance at December 31	$	3,890		$	4,043