Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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:



	2014		2013		2012
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes (net of federal benefit)	0.5		0.3		0.3
Foreign losses without tax benefit	1.1		0.8		0.8
U.S. Tax Court Decision	—		15.3		—
Foreign operations taxed at lower rates	(12.6	)	(20.6	)	(23.7	)
Repatriation from current year foreign earnings	2.6		1.1		2.3
Other	1.0		0.9		(1.2	)
Consolidated effective income tax rate	27.6	%	32.8	%	13.5	%

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:



	2014			2013			2012
Income from continuing operations before income taxes:
U.S.	$	33,070		$	10,343		$	8,853
International	133,430			97,231			83,409
Income from continuing operations before income taxes	$	166,500		$	107,574		$	92,262
Income tax provision:
Current:
U.S. – federal	$	22,673		$	8,356		$	579
U.S. – state	1,236			539			24
International	35,954			16,933			13,418
	59,863			25,828			14,021
Deferred:
U.S. – federal	(6,737		)	13,792			4,610
U.S. – state	1,279			(110		)	566
International	(8,446		)	(4,257		)	(6,765		)
	(13,904		)	9,425			(1,589		)
Income taxes	$	45,959		$	35,253		$	12,432

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
	2014			2013			2014			2013
Allowance for doubtful accounts	$	494		$	520		$	86		$	88
Depreciation and amortization	(19,338		)	1,886			59,271			96,305
Inventory valuation	17,072			17,292			1,981			4,241
Other postretirement/postemployment costs	17,549			3,065			(247		)	(14,536		)
Tax loss carryforwards	13,977			15,363			(56		)	(1,445		)
Pension	21,968			1,631			(1,005		)	(1,049		)
Accrued compensation	15,418			5,949			—			(9,381		)
Goodwill	(13,772		)	—			57			12,805
Swedish tax incentive	—			—			4,255			4,590
Contingent convertible debt interest	—			(12,848		)	—			—
Unrealized foreign currency gain	—			—			1,999			2,948
Other	4,398			6,555			5,763			3,735
	57,766			39,413			72,104			98,301
Valuation allowance	(15,856		)	(18,873		)	—			—
	$	41,910		$	20,540		$	72,104		$	98,301
Current deferred income taxes	$	31,849		$	18,226		$	1,957		$	3,795
Non-current deferred income taxes	10,061			2,314			70,147			94,506
	$	41,910		$	20,540		$	72,104		$	98,301

Summary of Income Tax Contingencies

A reconciliation of the unrecognized tax benefits for 2014, 2013 and 2012 follows:



	2014		2013			2012
Balance at January 1	$	8,027	$	9,321		$	6,965
Increase (decrease) in unrecognized tax benefits due to:
Tax positions taken during prior periods	533		9,944			—
Tax positions taken during the current period	—		3,350			—
Acquisition	—		556			2,528
Settlements	—		(15,144		)	(172		)
Balance at December 31	$	8,560	$	8,027		$	9,321

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 $0, $9,614, and $0 in the years 2014, 2013, and 2012 respectively. The liability for unrecognized tax benefits include gross accrued interest and penalties of $1,031, $1,031 and $0 at December 31, 2014, 2013 and 2012, 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 21 of the Consolidated Financial Statements for a discussion of current IRS matters.

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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