			Year Ended December 31,
			2013		2012		2011
Current:
	Federal	$	7,216	$	3,318	$	3,485
	State		263		(69)		385
	Foreign		13,040		9,972		7,955
			20,519		13,221		11,825
Deferred:
	Federal		155		4,409		2,022
	State		138		(794)		0
	Foreign		(323)		(1,261)		409
Total		$	20,489	$	15,575	$	14,256

Total deferred tax assets and liabilities are composed of the following at December 31:

	2013				2012
		Current		Non-current		Current		Non-current
Retirement benefits	$	585	$	9,371	$	614	$	14,397
Allowance for doubtful accounts		1,990		0		1,984		0
Insurance and litigation reserves		677		126		580		260
Postretirement benefits		0		1,951		0		2,543
Supplemental retirement benefits		0		3,010		0		2,501
Performance incentives		3,858		686		3,002		520
Equity-based compensation		351		585		349		395
Insurance settlement		6		9,071		10		9,425
Operating loss carryforward		0		9,228		0		9,425
Uncertain tax positions		0		5,806		0		7,700
Other		975		888		679		1,039
		8,442		40,722		7,218		48,205
Valuation allowance		(924)		(6,742)		(710)		(7,148)
Total deferred income tax assets, net	$	7,518	$	33,980	$	6,508	$	41,057
Depreciation		0		4,712		0		5,069
Europe pension and other		0		2,343		0		2,552
Amortization and other		749		8,595		360		9,146
Total deferred income tax liabilities	$	749	$	15,650	$	360	$	16,767

Following are the changes in the Company's deferred tax asset valuation allowance for the years ended December 31, 2013, December 31, 2012 and December 31, 2011:

								Effect of
		Balance at		Additional		Allowance		Exchange		Balance
		Beginning		Valuation		Utilization		Rate		at End
		of Period		Allowance		and Other		Changes		of Period
VALUATION ALLOWANCE
Year ended December 31, 2013	$	7,858	$	26	$	(1)	$	(217)	$	7,666
Year ended December 31, 2012	$	1,377	$	6,594	$	(34)	$	(79)	$	7,858
Year ended December 31, 2011	$	4,923	$	348	$	(3,753)	$	(141)	$	1,377

The Company's net deferred tax assets and liabilities are classified in the Consolidated Balance Sheet as follows:

	2013		2012
Current deferred tax assets	$	7,826	$	6,401
Non-current deferred tax assets		24,724		30,673
Current deferred tax liabilities		1,057		253
Non-current deferred tax liabilities		6,394		6,383

Net deferred tax asset	$	25,099	$	30,438

The following is a reconciliation of income taxes at the Federal statutory rate with income taxes recorded by the Company for the years ended December 31, 2013, December 31, 2012 and December 31, 2011:

			2013		2012		2011
Income tax provision at the Federal statutory tax rate		$	25,489	$	22,032	$	20,782
Differences in tax rates on foreign earnings and
	remittances		(2,487)		(3,207)		(3,692)
Foreign dividends			1,922		815		735
Excess foreign tax credit utilization			(3,664)		(2,237)		(2,493)
Research and development activities credit utilization			(200)		0		(1,348)
Uncertain tax positions			(589)		(1,196)		701
Domestic production activities deduction			(560)		(402)		0
State income tax provisions, net			171		(45)		250
Non-deductible entertainment and business meals
	expense		229		200		166
Non-taxable gain on acquisition			0		0		(951)
Miscellaneous items, net			178		(385)		106
Taxes on income		$	20,489	$	15,575	$	14,256

At December 31, 2013, the Company domestically had a net deferred tax asset of $12,695. In addition, the Company has foreign tax loss carryforwards of $12,160 of which $15 expires in 2014, $352 expires in 2015, $119 expires in 2016, $344 expires in 2017, $619 expires in 2018, $291 expires in 2019, $102 expires in 2020, $245 expires in 2021 and $258 expires in 2022; the remaining foreign tax losses have no expiration dates. A partial valuation allowance has been established with respect to the tax benefit of these losses for $2,104.

U.S. income taxes have not been provided on the undistributed earnings of non-U.S. subsidiaries because it is the Company's intention to continue to reinvest these earnings in those subsidiaries to support growth initiatives. U.S. and foreign income taxes that would be payable if such earnings were distributed may be lower than the amount computed at the U.S. statutory rate due to the availability of tax credits. The amount of such undistributed earnings at December 31, 2013 was approximately $188,000. Any income tax liability, which might result from ultimate remittance of these earnings, is expected to be substantially offset by foreign tax credits. It is currently impractical to estimate any such incremental tax expense.

As of December 31, 2013, the Company's cumulative liability for gross unrecognized tax benefits was $12,596. The Company had accrued $2,100 for cumulative penalties and $2,108 for cumulative interest at December 31, 2013. As of December 31, 2012, the Company's cumulative liability for gross unrecognized tax benefits was $12,410. The Company had accrued $1,630 for cumulative penalties and $2,288 for cumulative interest at December 31, 2012.

The Company continues to recognize interest and penalties associated with uncertain tax positions as a component of taxes on income before equity in net income of associated companies in its Consolidated Statement of Income. The Company recognized $392 for penalties and ($247) for interest (net of expirations and settlements) on its 2013 Consolidated Statement of Income, $301 for penalties and ($26) for interest (net of expirations and settlements) on its 2012 Consolidated Statement of Income and $502 for penalties and $529 for interest (net of expirations and settlements) on its 2011 Consolidated Statement of Income.

The Company estimates that during the year ending December 31, 2014, it will reduce its cumulative liability for gross unrecognized tax benefits by approximately $1,700 to $1,800 due to the expiration of the statute of limitations with regard to certain tax positions. This estimated reduction in the cumulative liability for unrecognized tax benefits does not consider any increase in liability for unrecognized tax benefits with regard to existing tax positions or any increase in cumulative liability for unrecognized tax benefits with regard to new tax positions for the year ending December 31, 2014.

The Company and its subsidiaries are subject to U.S. Federal income tax, as well as the income tax of various state and foreign tax jurisdictions. Tax years that remain subject to examination by major tax jurisdictions include Brazil from 2000, The Netherlands from 2007, United Kingdom from 2008, Spain from 2009, the United States, China and Italy from 2010 and various domestic state tax jurisdictions from 1993.

In the first quarter of 2013, the Internal Revenue Service (“IRS”) initiated a limited scope audit of the Company's 2010 Federal Income Tax Return. By letter dated March 25, 2013, the IRS notified the Company that it had completed the review of the Company's 2010 Federal Income Tax Return without any changes to the reported tax.

During the second quarter of 2012, the Italian tax authorities initiated a transfer pricing audit of the Company's Italian subsidiary. On July 7, 2012, the Company received a preliminary tax report related to this transfer pricing audit, which proposed several adjustments to the taxable income of the subsidiary. During the fourth quarter of 2012, the Company's Italian subsidiary received an assessment for the tax year 2007, which the Company appealed during the first quarter of 2013. On June 24, 2013, a hearing was held before the Provincial Tax Court of Varese, Italy. On September 16, 2013, the Provincial Tax Court of Varese delivered a decision confirming the Italian tax authorities' proposed adjustment to the taxable income of the subsidiary, but denying the proposed assessment of penalties. On January 24, 2014, Company's Italian subsidiary appealed the decision of the Provincial Tax Court of Varese.

On November 29, 2013, the Italian tax authorities issued a tax assessment for the tax year 2008, raising identical issues as the assessment for 2007, noted above. The Company intends to file an appeal with the Provincial Tax Court of Varese and apply for competent authority relief between the Italian and Dutch tax authorities.

Related to each of the above events, the Company and outside counsel believe we should prevail on the merits of each case. Therefore, the Company does not believe it has any exposures warranting an uncertain tax position reserve as of December 2013.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively, is as follows:

			2013		2012		2011
Unrecognized tax benefits at January 1		$	12,410	$	12,719	$	10,464
	Increase in unrecognized tax benefits taken in prior periods		83		0		1,597
	(Decrease) in unrecognized tax benefits taken in prior periods		0		(411)		0
	Increase in unrecognized tax benefits taken in current period		2,182		1,733		2,623
	(Decrease) in unrecognized tax benefits due to lapse of statute of limitations		(2,485)		(1,837)		(1,578)
	Increase (decrease) due to foreign exchange rates		406		206		(387)
Unrecognized tax benefits at December 31		$	12,596	$	12,410	$	12,719

The amount of unrecognized tax benefits above that, if recognized, would impact the Company's tax expense and effective tax rate is $1,194, $1,652 and $2,966 in 2013, 2012 and 2011, respectively.