Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014



(In thousands)	2014			2013			2012
Components of income before income taxes*
U.S. income	$	58,209		$	48,621		$	67,043
Non-U.S. income	68,986			71,512			62,300
Income before income taxes	127,195			120,133			129,343
Provision for income taxes*
Current
Federal	$	23,659		$	18,656		$	18,774
State	1,349			1,492			2,556
Non-U.S.	21,101			18,453			19,438
Total current provision	46,109			38,601			40,768
Deferred
Federal	(3,650		)	(3,582		)	(518		)
State	317			(483		)	(125		)
Non-U.S.	(1,732		)	609			1,276
Total deferred provision	(5,065		)	(3,456		)	633
Provision for income taxes	41,044			35,145			41,401

*The components of income before income taxes and the provision for income taxes relate to continuing operations.

Reconciliation of the U.S. federal income tax rates to our effective tax rate:



	2014		2013		2012
U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes—U.S.	0.8		0.6		1.2
Taxes on non-U.S. income	(2.2	)	(4.5	)	(1.0	)
Research and development credit	(0.7	)	(1.5	)	—
Manufacturing deduction credit	(1.0	)	(1.1	)	(2.0	)
Valuation allowances	(0.6	)	0.5		(0.2	)
Other	1.0		0.3		(1.0	)
Effective income tax rate	32.3	%	29.3	%	32.0	%

Components of deferred tax assets and liabilities:



	December 31,
(In thousands)	2014			2013
Deferred tax assets
Book expenses capitalized for tax	$	6,336		$	7,204
Post-retirement benefits	23,335			18,027
Inventory reserves	3,147			5,550
Vacation allowances	932			1,036
Net operating losses and tax credit carryforwards	7,479			6,711
Post employment benefits	2,382			757
Foreign tax credit carryforwards	11,231			2,227
Stock options	10,157			10,185
Liability insurance	3,918			3,686
Basis of capital assets	1,009			891
Warranties	3,210			3,049
Reserve for doubtful accounts	1,948			1,569
Accrued payroll	4,319			2,475
Other	5,801			6,838
Total deferred tax assets	85,204			70,205
Valuation allowances	(3,763		)	(4,938		)
Net deferred tax assets	81,441			65,267
Deferred tax liabilities
Property, plant and equipment	(9,269		)	(8,935		)
Pension	(22,195		)	(40,833		)
Intangibles	(30,180		)	(25,212		)
Other	(2,045		)	(2,455		)
Total deferred tax liabilities	(63,689		)	(77,435		)
Net deferred taxes	17,752			(12,168		)

A reconciliation of the change in the tax liability for unrecognized tax benefits for the years ended December 31, 2014 and 2013 is as follows:



(In thousands)	2014			2013
Beginning balance	$	5,888		$	9,520
Adjustments for tax positions related to the current year	4,072			(3,628		)
Adjustments for tax positions related to prior years	3			97
Statute expiration	(106		)	(101		)
Ending balance	9,857			5,888