(5)	Income Taxes

The provision for income taxes for the three months ended March 31, 2014 totaled $454, and resulted in an effective tax rate of 28.0%. For the three months ended March 31, 2014, the effective tax rate includes a benefit of $198 for a partial reversal of a deferred tax valuation allowance against domestic federal foreign tax credits due to an increase in forecasted new business for 2014 in an amount and type that should allow utilization of these foreign tax credits. The Company expects to reduce the valuation allowance against foreign tax credits by approximately $5,000 throughout the year due to this forecasted new business for 2014. The Company continues to assess the need for a valuation allowance against a portion of its remaining foreign tax credits. It is possible that new customer business or other changes in the amount or type of future U.S. income could result in the release in future periods of some portion of additional domestic valuation allowance attributable to these remaining foreign tax credits before they expire. The Company has approximately $14,000 and $13,000 of foreign tax credits expiring in 2015 and 2016, respectively.

In 2009, a subsidiary of the Company was examined by a European tax authority, which challenged the business purpose of the deductibility of certain intercompany transactions from 2003 and issued formal assessments against the subsidiary. In 2010, the Company filed to litigate the matter. Although the Company has had several favorable rulings in the courts, they have been appealed or are subject to appeal. For the three months ended March 31, 2014, the Company increased its reserve for unrecognized tax benefits for this matter by $39. Any ruling reached by any of the courts may be subject to further appeals, and as such the final date of resolution of this matter is uncertain at this time. However, within the next twelve months it is possible that factors such as new developments, settlements or judgments may require the Company to increase its reserve for unrecognized tax benefits by up to approximately $8,000 or decrease its reserve by approximately $6,500, including penalties and interest. If the court rules against the Company in subsequent court proceedings, a payment for the amount of the judgment, including any penalties and interest, will be due immediately while the case is appealed. The Company has analyzed these issues in accordance with guidance on uncertain tax positions and believes at this time that its reserves are adequate, and intends to vigorously defend itself.