Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Consolidated income (loss) from continuing operations before income taxes by location

Consolidated income (loss) from continuing operations before income taxes consists of:



(Dollars in thousands)	2013		2012		2011
Domestic	$	13,208	$	6,260	$	9,285
International	35,677		16,390		46,483
Total	$	48,885	$	22,650	$	55,768

Income tax expense (benefit) by location

The income tax expense (benefit) in the consolidated statements of income (loss) consists of:



(Dollars in thousands)	Current			Deferred			Total
2013
Domestic	$	(7,075	)	$	5,894		$	(1,181	)
International	12,667			(260		)	12,407
Total	$	5,592		$	5,634		$	11,226

2012
Domestic	$	3,651		$	(59,414	)	$	(55,763	)
International	8,118			1,161			9,279
Total	$	11,769		$	(58,253	)	$	(46,484	)

2011
Domestic	$	2,173		$	(828	)	$	1,345
International	12,070			(1,897		)	10,173
Total	$	14,243		$	(2,725	)	$	11,518

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2013 and 2012, are comprised of the following:



(Dollars in thousands)
	2013			2012
Deferred tax assets
Accrued employee benefits and compensation	$	8,927		$	10,591
Postretirement benefit obligations	2,736			23,066
Tax credit carryforwards	9,825			18,574
Reserves and accruals	6,671			6,014
Depreciation and amortization	20,717			19,134
Other	3,715			1,751
Total deferred tax assets	52,591			79,130
Less deferred tax asset valuation allowance	(466		)	(466		)
Total deferred tax assets, net of valuation allowance	52,125			78,664
Deferred tax liabilities
Investment in joint ventures, net	—			1,559
Depreciation and amortization	15,839			15,654
Other	238			332
Total deferred tax liabilities	16,077			17,545
Net deferred tax asset	$	36,048		$	61,119

Effective income tax rate reconciliation

Income tax expense differs from the amount computed by applying the United States federal statutory income tax rate to income before income taxes. The reasons for this difference are as follows:



(Dollars in thousands)	2013			2012			2011

Tax expense at Federal statutory income tax rate	$	17,110		$	7,928		$	19,518
International tax rate differential	(2,541		)	(209		)	(4,627		)
Foreign source income, net of tax credits	(786		)	(3,428		)	(1,021		)
Unrecognized tax benefits	(2,197		)	1,604			272
General business credits	(702		)	—			(831		)
Valuation allowance change	—			(52,650		)	(1,989		)
Other	342			271			196
Income tax expense (benefit)	$	11,226		$	(46,484	)	$	11,518

Reconciliation of unrecognized tax benefits

A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for the years ending December 31, 2013 and December 31, 2012, is as follows:



(Dollars in thousands)
	2013			2012
Beginning balance	$	17,333		$	16,133
Gross increases - current period tax positions	1,445			1,929
Gross decreases - tax positions in prior periods	(7,136		)	—
Foreign currency exchange	79			37
Lapse of statute of limitations	(2,573		)	(766		)
Ending balance	$	9,148		$	17,333