MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Revenue Recognition Foreign Currency  Income Taxes Research and Development Expenses Accounting for Stock-Based Compensation  Pension and Post-retirement Benefits Environmental F-9  Expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an  existing condition caused by past operations and which do not contribute to current or future revenue generation are  expensed. Liabilities are recorded when it is probable the Company will be obligated to pay amounts for environmental site  evaluation, remediation or related costs, and such amounts can be reasonably estimated.  The Company also provides post-retirement healthcare benefits for the majority of its retirees and employees in the United  States. The Company measures the costs of its obligation based on its best estimate. The net periodic costs are recognized as  employees render the services necessary to earn the post-retirement benefits.  The Company has defined benefit pension plans covering the majority of its employees. The benefits are generally based  on years of service and an employee's modified career earnings.  The Company recognizes compensation expense for share-based awards based upon the grant date fair value over the  vesting period.  Research and development expenses are expensed as incurred. The accompanying financial statements generally do not include a provision for U.S. income taxes on international  subsidiaries' unremitted earnings, which are expected to be permanently reinvested overseas.  The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often  ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax  exposures. Interpretations of and guidance surrounding income tax laws and regulations change over time. As such, changes  in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and  statements of operations. The Company's accounting policy is to recognize interest and penalties as part of its provision for  income taxes. See Note 5, "Income Taxes," for additional detail on our uncertain tax positions.  The Company operates in multiple taxing jurisdictions, both within the U.S. and outside the U.S. In certain situations, a  taxing authority may challenge positions that the Company has adopted in its income tax filings. The Company regularly  assesses its tax position for such transactions and includes reserves for those differences in position. The reserves are utilized  or reversed once the statute of limitations has expired or the matter is otherwise resolved.  Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences  between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax  assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are  expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in  income in the period that includes the enactment date.  The assets and liabilities of the Company's international subsidiaries are translated into U.S. dollars using exchange rates  at the respective balance sheet date. The resulting translation adjustments are recorded in accumulated other comprehensive  income (loss) in shareholders' equity. Income statement items are generally translated at monthly average exchange rates  prevailing during the period. International subsidiaries operating in highly inflationary economies translate non-monetary  assets at historical rates, while net monetary assets are translated at current rates, with the resulting translation adjustments  included in net income. At December 31, 2013, the Company had no international subsidiaries operating in highly  inflationary economies.  Revenue from sale of products is recognized at the time the goods are shipped and title passes to the customer. In most of  the Company's PCC contracts, the price per ton is based upon the total number of tons sold to the customer during the year.  Under those contracts the price billed to the customer for shipments during the year is based on periodic estimates of the total  annual volume that will be sold to such customer. Revenues are adjusted at the end of each year to reflect the actual volume  sold. The Company also has consignment arrangements with certain customers in our Refractories segment. Revenues for  these transactions are recorded when the consigned products are consumed by the customer.  Revenues from sales of equipment are recorded upon completion of installation and receipt of customer acceptance.  Revenues from services are recorded when the services have been performed. 