Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory income tax rate to the consolidated effective income tax rate from continuing operations follows:

	2013		2012		2011
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes (net of federal benefit)	0.3		0.3		0.5
Foreign losses without tax benefit	0.8		0.8		0.3
U.S. Tax Court Decision	15.3		—		—
Foreign operations taxed at lower rates	(20.6	)	(23.7	)	(25.5	)
ESOP dividend	(0.3	)	(0.5	)	(0.4	)
Repatriation from current year foreign earnings	1.1		2.3		7.6
Other	1.2		(0.7	)	0.1
Consolidated effective income tax rate	32.8	%	13.5	%	17.6	%

Schedule of Income before Income Tax, Domestic and Foreign and Components of Income Tax Expense

The components of Income from continuing operations before income taxes and Income taxes follow:

	2013			2012			2011
Income from continuing operations before income taxes:
U.S.	$	10,343		$	8,853		$	(630	)
International	97,231			83,409			91,605
Income from continuing operations before income taxes	$	107,574		$	92,262		$	90,975
Income tax provision:
Current:
U.S. – federal	$	8,356		$	579		$	12,223
U.S. – state	539			24			(128		)
International	16,933			13,418			11,695
	25,828			14,021			23,790
Deferred:
U.S. – federal	13,792			4,610			(6,382		)
U.S. – state	(110		)	566			928
International	(4,257		)	(6,765		)	(2,316		)
	9,425			(1,589		)	(7,770		)
Income taxes	$	35,253		$	12,432		$	16,020

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities at December 31 consist of the tax effects of temporary differences related to the following:

	Assets						Liabilities
	2013			2012			2013			2012
Allowance for doubtful accounts	$	520		$	946		$	88		$	78
Depreciation and amortization	1,886			(13,881		)	96,305			35,245
Inventory valuation	17,292			15,486			4,241			1,288
Other postretirement/postemployment costs	3,065			20,841			(14,536		)	(350		)
Tax loss carryforwards	15,363			48,402			(1,445		)	—
Pension	1,631			41,854			(1,049		)	(262		)
Accrued compensation	5,949			12,611			(9,381		)	—
Goodwill	—			(35,236		)	12,805			53
Swedish tax incentive	—			—			4,590			3,898
Contingent convertible debt interest	(12,848		)	(10,846		)	—			—
Unrealized foreign currency gain	—			—			2,948			2,613
Other	6,555			8,626			3,735			7,921
	39,413			88,803			98,301			50,484
Valuation allowance	(18,873		)	(24,936		)	—			—
	$	20,540		$	63,867		$	98,301		$	50,484
Current deferred income taxes	$	18,226		$	33,906		$	3,795		$	1,777
Non-current deferred income taxes	2,314			29,961			94,506			48,707
	$	20,540		$	63,867		$	98,301		$	50,484

Summary of Income Tax Contingencies

A reconciliation of the unrecognized tax benefits for 2013, 2012 and 2011 follows:

	2013			2012			2011
Balance at January 1	$	9,321		$	6,965		$	7,102
Increase (decrease) in unrecognized tax benefits due to:
Tax positions taken during prior periods	9,944			—			—
Tax positions taken during the current period	3,350			—			215
Acquisition	556			2,528			—
Settlements	(15,144		)	(172		)	(175		)
Lapse of the applicable statute of limitations	—			—			(177		)
Balance at December 31	$	8,027		$	9,321		$	6,965

The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The Company recognized interest and penalties as a component of income taxes of $9,614, $0, and $(32) in the years 2013, 2012, and 2011 respectively. The liability for unrecognized tax benefits include gross accrued interest and penalties of $1,031, $0 and $0 at December 31, 2013, 2012 and 2011, respectively.

The Company or its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by various taxing authorities, including the IRS in the U.S. and the taxing authorities in other major jurisdictions such as Brazil, Canada, China, France, Germany, Mexico, Singapore, Sweden, Switzerland and the United Kingdom. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2003. See Note 20 of the Consolidated Financial Statements for a discussion of current IRS matters.