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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes [Abstract] |
Income Taxes | Note 8 - Income Taxes Income before income taxes and equity earnings (losses) is attributable to the following jurisdictions (in thousands):
|  | Year Ended December 31, |
| 2011 |  | 2010 |  | 2009 |
United States | $ | 111,376 |  | $ | 92,108 |  | $ | 76,941 |
Foreign |  | 5,727 |  |  | 2,518 |  |  | 1,832 |
Total | $ | 117,103 |  | $ | 94,626 |  | $ | 78,773 |
The provision for income taxes consisted of the following (in thousands):
| Year Ended December 31, |
| 2011 |  | 2010 |  | 2009 |
Current: |  |  |  |  |  |  |  |  |
Federal | $ | 32,850 |  | $ | 29,040 |  | $ | 24,422 |
State and other |  | 7,675 |  |  | 5,682 |  |  | 4,998 |
Total current provision for income taxes |  | 40,525 |  |  | 34,722 |  |  | 29,420 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | 4,754 |  |  | 1,715 |  |  | 1,659 |
State and other |  | 40 |  |  | 656 |  |  | (122 | )
Total deferred provision for income taxes |  | 4,794 |  |  | 2,371 |  |  | 1,537 |
Provision for income taxes | $ | 45,319 |  | $ | 37,093 |  | $ | 30,957 |
A reconciliation of the U.S. federal statutory tax rate to our effective tax rate on Income before income taxes and equity earnings (losses) is as follows:
|  | Year Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Federal statutory rate |  | 35.00 | % |  | 35.00 | % |  | 35.00 | %
Other, primarily state income tax rate |  | 3.70 |  |  | 4.20 |  |  | 4.30 |
Total effective tax rate |  | 38.70 | % |  | 39.20 | % |  | 39.30 | %
We recorded a reduction in the deferred tax liability of $1.4 million in 2009 related to our equity losses in LAC. This amount is not reflected in the tables above. The components of the deferred tax assets and liabilities are as follows (in thousands):
|  | December 31, |
|  | 2011 |  |  | 2010 |
Deferred tax assets: |  |  |  |  |  |
Product inventories | $ | 8,075 |  | $ | 8,085 |
Accrued expenses |  | 2,885 |  |  | 1,272 |
Allowance for doubtful accounts |  | 777 |  |  | 854 |
Total current |  | 11,737 |  |  | 10,211 |
Leases |  | 1,866 |  |  | 1,676 |
Share-based compensation |  | 17,740 |  |  | 17,321 |
Uncertain tax positions |  | 1,650 |  |  | 1,387 |
Net operating losses |  | 3,972 |  |  | 3,537 |
Interest rate swaps |  | 164 |  |  | 1,316 |
Equity losses in unconsolidated investments |  | 5,653 |  |  | 5,653 |
Other |  | 1,037 |  |  | 1,079 |
Total non-current |  | 32,082 |  |  | 31,969 |
Less: Valuation allowance |  | (9,625 | ) |  | (9,190 | )
Total non-current, net |  | 22,457 |  |  | 22,779 |
Total deferred tax assets |  | 34,194 |  |  | 32,990 |
Deferred tax liabilities: |  |  |  |  |  |
Trade discounts on purchases |  | 1,944 |  |  | 2,159 |
Prepaid expenses |  | 1,032 |  |  | 1,067 |
Total current |  | 2,976 |  |  | 3,226 |
Intangible assets, primarily goodwill |  | 27,108 |  |  | 24,330 |
Depreciation |  | 5,885 |  |  | 1,263 |
Total non-current |  | 32,993 |  |  | 25,593 |
Total deferred tax liabilities |  | 35,969 |  |  | 28,819 |
Net deferred tax (liability) asset | $ | (1,775 | ) | $ | 4,171 |
At December 31, 2011, certain of our international subsidiaries had tax loss carryforwards totaling approximately $13.1 million, which expire in various years after 2012. Deferred tax assets related to the tax loss carryforwards of these international subsidiaries were $4.0 million as of December 31, 2011 and $3.5 million as of December 31, 2010. We have recorded a corresponding valuation allowance of $4.0 million and $3.5 million in the respective years. We have also recorded a $5.7 million valuation allowance related to our deferred tax asset recorded for the write-off of our investment in LAC. As presented in the Consolidated Statements of Cash Flows, the changes in deferred income taxes include changes related to the deferred income tax provision, the estimated tax impact of accumulated other comprehensive income (loss) and equity losses from our former investment in LAC. We reduce federal and state income taxes payable by the tax benefits associated with the exercise of nonqualified stock options and the lapse of restrictions on restricted stock awards. To the extent realized tax deductions exceed the amount of previously recognized deferred tax benefits related to share-based compensation, we record an excess tax benefit in stockholders’ equity. We recorded excess tax benefits of $3.1 million in 2011 and $1.9 million in 2010. As of December 31, 2011, United States income taxes were not provided on earnings of our foreign subsidiaries, as we have invested or expect to invest the undistributed earnings indefinitely. If in the future these earnings are repatriated to the United States, or if we determine that the earnings will be remitted in the foreseeable future, additional income tax provisions may be required. Determining the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable due to the complexity of tax laws and regulations and the varying circumstances, tax treatments and timing of any future repatriation. We hold, through our affiliates, cash balances in the countries in which we operate, including amounts held outside the United States. Most of the amounts held outside the United States could be repatriated to the United States, but, under current law, may be subject to United States federal income taxes, less applicable foreign tax credits. Repatriation of some foreign balances is restricted by local laws including the imposition of withholding taxes in some jurisdictions. We have not provided for the United States federal tax liability on these amounts and for financial statement purposes, these foreign cash balances are considered indefinitely reinvested. The following is a summary of the activity related to uncertain tax positions for the past three years (in thousands):
|  | 2011 |  |  | 2010 |  |  | 2009 |
Balance at beginning of year | $ | 3,962 |  | $ | 4,550 |  | $ | 3,887 |
Increases for tax positions taken during a prior period |  | – |  |  | 114 |  |  | 579 |
Increases for tax positions taken during the current period |  | 914 |  |  | 811 |  |  | 898 |
Decreases resulting from the expiration of the statute of limitations |  | (46 | ) |  | (992 | ) |  | (814 | )
Decreases relating to settlements |  | (115 | ) |  | (521 | ) |  | – |
Balance at end of year | $ | 4,715 |  | $ | 3,962 |  | $ | 4,550 |
The total amount of unrecognized tax benefits that, if recognized, would decrease the effective tax rate was $3.0 million at December 31, 2011 and $2.6 million at December 31, 2010. We record interest expense related to unrecognized tax benefits in interest expense, while we record related penalties in selling and administrative expenses. For unrecognized tax benefits, we had interest expense of $0.3 million in 2011 and $0.1 million in 2010. Accrued interest related to unrecognized tax benefits was approximately $0.8 million at December 31, 2011 and $0.5 million at December 31, 2010. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2008.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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