Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015



(In thousands)	2015			2014			2013
Components of income before income taxes*
U.S. income	$	60,753		$	58,209		$	48,621
Non-U.S. income	50,273			68,986			71,512
Income before income taxes	$	111,026		$	127,195		$	120,133
Provision for income taxes*
Current
Federal	$	21,253		$	23,659		$	18,656
State	2,389			1,349			1,492
Non-U.S.	22,979			21,101			18,453
Total current provision	46,621			46,109			38,601
Deferred
Federal	3,813			(3,650		)	(3,582		)
State	(213		)	317			(483		)
Non-U.S.	(5,814		)	(1,732		)	609
Total deferred provision	(2,214		)	(5,065		)	(3,456		)
Provision for income taxes	$	44,407		$	41,044		$	35,145

*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 for continuing operations to our effective tax rate:



	2015		2014		2013
U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes—U.S.	1.3		0.8		0.6
Taxes on non-U.S. income	(2.1	)	(2.2	)	(4.5	)
Taxes on non-U.S. income - European reorganization	6.9		—		—
Research and development credit	(1.1	)	(0.7	)	(1.5	)
Manufacturing deduction credit	(1.6	)	(1.0	)	(1.1	)
Valuation allowances	1.7		(0.6	)	0.5
Other	(0.1	)	1.0		0.3
Effective income tax rate	40.0	%	32.3	%	29.3	%

Components of deferred tax assets and liabilities:



	December 31,
(In thousands)	2015			2014
Deferred tax assets
Book expenses capitalized for tax	$	5,476		$	6,336
Post-retirement benefits	17,838			23,335
Inventory reserves	2,487			3,147
Vacation allowances	816			932
Net operating losses and tax credit carryforwards	7,394			7,479
Post employment benefits	3,488			2,382
Foreign tax credit carryforwards	8,266			11,231
Stock options	10,587			10,157
Product Liability	6,253			3,918
Basis of capital assets	912			1,009
Warranties	3,666			3,210
Reserve for doubtful accounts	2,320			1,948
Accrued payroll	4,172			4,319
Other	7,782			5,801
Total deferred tax assets	81,457			85,204
Valuation allowances	(5,153		)	(3,763		)
Net deferred tax assets	76,304			81,441
Deferred tax liabilities
Property, plant and equipment	(10,938		)	(9,269		)
Pension	(18,947		)	(22,195		)
Intangibles	(43,789		)	(30,180		)
Other	(1,047		)	(2,053		)
Total deferred tax liabilities	(74,721		)	(63,697		)
Net deferred taxes	$	1,583		$	17,744

A reconciliation of the change in the tax liability for unrecognized tax benefits for the years ended December 31, 2015 and 2014 is as follows:



(In thousands)	2015			2014
Beginning balance	$	9,857		$	5,888
Adjustments for tax positions related to the current year	8,203			4,072
Adjustments for tax positions related to prior years	(4,887		)	3
Statute expiration	(103		)	(106		)
Ending balance	$	13,070		$	9,857