(8) Income Taxes

The significant components of the Company's deferred income tax liabilities and assets are as follows:

	December 31,

	2013			2012
	(in millions)
Deferred income tax liabilities:
Excess tax over book depreciation	$	22.4		$	23.7
Intangibles		29.1			30.5
Other		18.3			15.7


Total deferred tax liabilities		69.8			69.9
Deferred income tax assets:
Accrued expenses		21.3			16.7
Net operating loss carry-forward		10.9			5.4
Inventory reserves		12.3			8.6
Pension—accumulated other comprehensive income		16.3			15.8
Other		9.8			14.9


Total deferred tax assets		70.6			61.4
Less: valuation allowance		(13.1	)		(10.1	)


Net deferred tax assets		57.5			51.3


Net deferred tax liabilities	$	(12.3	)	$	(18.6	)

The provision for income taxes from continuing operations is based on the following pre-tax income:

	Years Ended December 31,

	2013		2012		2011
	(in millions)
Domestic	$	21.6	$	27.3	$	39.6
Foreign		66.2		72.9		68.3


	$	87.8	$	100.2	$	107.9

The provision for income taxes from continuing operations consists of the following:

	Years Ended December 31,

	2013			2012			2011
	(in millions)
Current tax expense:
Federal	$	12.8		$	5.0		$	6.9
Foreign		19.7			21.5			18.3
State		2.5			1.3			1.8


		35.0			27.8			27.0


Deferred tax expense (benefit):
Federal		(5.0	)		4.4			5.5
Foreign		(2.3	)		(3.5	)		(3.0	)
State		(0.8	)		1.1			1.2


		(8.1	)		2.0			3.7


	$	26.9		$	29.8		$	30.7

Actual income taxes reported from continuing operations are different than would have been computed by applying the federal statutory tax rate to income from continuing operations before income taxes. The reasons for this difference are as follows:

	Years Ended December 31,

	2013			2012			2011
	(in millions)
Computed expected federal income expense	$	30.8		$	35.0		$	37.8
State income taxes, net of federal tax benefit		1.0			1.5			1.9
Foreign tax rate differential		(5.7	)		(7.4	)		(4.4	)
China tax clawback		—			—			(4.2	)
Other, net		0.8			0.7			(0.4	)


	$	26.9		$	29.8		$	30.7

At December 31, 2013, the Company had foreign net operating loss carry forwards of $43.5 million for income tax purposes before considering valuation allowances; $32.0 million of the losses can be carried forward indefinitely and $11.5 million expire in 2020. The net operating losses consist of $29.8 million related to Austrian operations, $2.2 million to Italian operations, and $11.5 million to Dutch operations.

At December 31, 2013 and December 31, 2012, the Company had valuation allowances of $13.1 million and $10.1 million, respectively. At December 31, 2013, $6.1 million relates to U.S. capital losses and $7.0 million relates to Austrian net operating losses. At December 31, 2012, the entire $10.1 million related to U.S. capital losses. Management believes that the ability of the Company to use such losses within the applicable carry forward period does not rise to the level of the more likely than not threshold. The Company does not have a valuation allowance with respect to other deferred tax assets, as management believes that it is more likely than not that the Company will recover such deferred tax assets.

Changes enacted in income tax laws had no material effect on the Company in 2013, 2012 or 2011.

Undistributed earnings of the Company's foreign subsidiaries amounted to approximately $397.2 million at December 31, 2013, $329.7 million at December 31, 2012, and $282.2 million at December 31, 2011. Those earnings are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal and state income taxes has been recorded thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Company will be subject to withholding taxes payable to the various foreign countries. Determination of the amount of U.S. income tax liability that would be incurred is not practicable because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits may be available to reduce some portion of any U.S. income tax liability. Withholding taxes of approximately $11.3 million would be payable upon remittance of all previously unremitted earnings at December 31, 2013.