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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes [Abstract] |
Income Taxes | Note 7 – Income Taxes The components of income (loss) before income taxes were taxed under the following jurisdictions:
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
Domestic |  | $ | 118,208 |  |  | $ | 88,262 |  |  | $ | 36,478 |
Foreign |  |  | 11,953 |  |  |  | 33,588 |  |  |  | (13,349 | )
Income before income taxes |  | $ | 130,161 |  |  | $ | 121,850 |  |  | $ | 23,129 |
Income tax expense consists of the following:
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
Current tax expense: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 43,127 |  |  | $ | 32,132 |  |  | $ | 14,834 |
Foreign |  |  | 1,740 |  |  |  | 6,292 |  |  |  | 3,248 |
State and local |  |  | 2,398 |  |  |  | 2,518 |  |  |  | 2,264 |
Current tax expense |  |  | 47,265 |  |  |  | 40,942 |  |  |  | 20,346 |
Deferred tax (benefit) expense: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (6,480 | ) |  |  | (4,057 | ) |  |  | (4,321 | )
Foreign |  |  | 344 |  |  |  | (2,036 | ) |  |  | 3,893 |
State and local |  |  | 1,946 |  |  |  | (534 | ) |  |  | (2,126 | )
Deferred tax (benefit) expense |  |  | (4,190 | ) |  |  | (6,627 | ) |  |  | (2,554 | )
Income tax expense |  | $ | 43,075 |  |  | $ | 34,315 |  |  | $ | 17,792 |
No provision is made for U.S. income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. It is not practicable to compute the potential deferred tax liability associated with these undistributed foreign earnings. The difference between the reported income tax expense and a tax determined by applying the applicable U.S. federal statutory income tax rate to income before income taxes is reconciled as follows:
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
Expected income tax expense |  | $ | 45,556 |  |  | $ | 42,647 |  |  | $ | 8,095 |
State and local income tax, net of federal benefit |  |  | 4,267 |  |  |  | 2,867 |  |  |  | 2,844 |
Effect of foreign statutory rate different from U.S. and other foreign adjustments |  |  | (560 | ) |  |  | (2,143 | ) |  |  | 435 |
Valuation allowance changes |  |  | (443 | ) |  |  | (5,496 | ) |  |  | 52 |
U.S. production activities deduction |  |  | (3,850 | ) |  |  | (2,975 | ) |  |  | (700 | )
Gain on early retirement of debt |  |  | - |  |  |  | - |  |  |  | (45 | )
Goodwill impairment |  |  | - |  |  |  | - |  |  |  | 8,728 |
Tax contingency changes |  |  | (1,934 | ) |  |  | (1,516 | ) |  |  | (973 | )
Other, net |  |  | 39 |  |  |  | 931 |  |  |  | (644 | )
Income tax expense |  | $ | 43,075 |  |  | $ | 34,315 |  |  | $ | 17,792 |
During 2011, the Company released a valuation allowance of $0.4 million, or one cent per diluted share, due to the expectation that certain state tax attributes will be utilized. During 2010, as a result of income from an insurance settlement in a foreign jurisdiction, the Company utilized a deferred tax asset and released a related valuation allowance of $5.5 million, or 15 cents per diluted share. Additional valuation allowance releases totaled $1.1 million, or 3 cents per diluted share, due to the expectation that certain state tax attributes will be utilized. The Company also added a valuation allowance of $1.1 million, or 3 cents per diluted share, to offset a foreign deferred tax asset generated during 2010. During 2009, the Company added valuation allowances of $3.6 million, or 10 cents per diluted share, due to the expectation that certain foreign deferred tax assets will not be realized. This expense was partially offset by the reduction of a valuation allowance of $2.6 million, or 7 cents per diluted share, due to an increase in the expected future utilization of a state deferred tax asset and the net reduction of a valuation allowance of $0.9 million, or 2 cents per diluted share, related to a federal deferred tax asset. The following summarizes the activity related to the Company's unrecognized tax benefits:
(In thousands) |  | 2011 |  |  | 2010 |
Beginning balance |  | $ | 8,565 |  |  | $ | 11,282 |
Increases related to prior year tax positions |  |  | - |  |  |  | 134 |
Increases related to current year tax positions |  |  | - |  |  |  | 47 |
Decreases related to prior year tax positions |  |  | (802 | ) |  |  | (612 | )
Decreases related to settlements with taxing authorities |  |  | - |  |  |  | (392 | )
Decreases due to lapses in the statute of limitations |  |  | (1,191 | ) |  |  | (1,894 | )
Ending balance |  | $ | 6,572 |  |  | $ | 8,565 |
Federal income tax benefits associated with state tax uncertainties and interest on federal tax uncertainties are recorded as a deferred tax asset. As of December 31, 2011, this asset totaled $0.2 million. Of the $6.6 million total unrecognized tax benefits and $0.2 million of accrued interest, up to $4.0 million could affect the effective tax rate, if recognized. Due to ongoing federal, state, and foreign income tax audits and potential lapses of the statutes of limitations in various taxing jurisdictions, it is reasonably possible that the Company's unrecognized tax benefits and accrued interest may decrease in the next twelve months up to $3.6 million. The Company includes interest and penalties related to income tax matters as a component of income tax expense. Cumulative potential interest and penalties accrued related to unrecognized tax benefits totaled $0.2 million as of December 31, 2011 and $0.7 million as of December 25, 2010, without consideration of any applicable federal benefit. The net reduction to income tax expense related to penalties and interest was $0.5 million in 2011, $0.2 million in 2010, and $0.7 million in 2009. The Internal Revenue Service concluded the audit of the Company's 2007 federal income tax return during 2010, the adjustments from which were immaterial. Audit settlements of the 2004 and 2005 years in Mexico resulted in tax expense of $2.0 million, or 5 cents per diluted share during 2010. The Company is currently under audit in various state jurisdictions. The statute of limitations is still open for the Company's federal tax return and most state income tax returns for the 2008 return and all subsequent years. The statutes of limitations for certain state and foreign returns are also open for some earlier tax years due to ongoing audits and differing statute periods. While the Company believes that it is adequately reserved for possible audit adjustments, the final resolution of these examinations cannot be determined with certainty and could result in final settlements that differ from current estimates. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
(In thousands) |  | 2011 |  |  | 2010 |
Deferred tax assets: |  |  |  |  |  |
Accounts receivable |  | $ | 424 |  |  | $ | 1,961 |
Inventories |  |  | 11,075 |  |  |  | 7,885 |
Other postretirement benefits and accrued items |  |  | 13,880 |  |  |  | 13,889 |
Pension |  |  | 19,262 |  |  |  | 14,764 |
Other reserves |  |  | 14,671 |  |  |  | 13,516 |
Federal and foreign tax attributes |  |  | 7,421 |  |  |  | 6,651 |
State tax attributes, net of federal benefit |  |  | 30,478 |  |  |  | 32,138 |
Other |  |  | 2,296 |  |  |  | 2,062 |
Total deferred tax assets |  |  | 99,507 |  |  |  | 92,866 |
Less valuation allowance |  |  | (29,705 | ) |  |  | (28,714 | )
Deferred tax assets, net of valuation allowance |  |  | 69,802 |  |  |  | 64,152 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant, and equipment |  |  | 44,757 |  |  |  | 48,330 |
Foreign withholding tax |  |  | - |  |  |  | 719 |
Pension |  |  | 8,589 |  |  |  | 8,621 |
Other |  |  | 893 |  |  |  | 1,093 |
Total deferred tax liabilities |  |  | 54,239 |  |  |  | 58,763 |
Net deferred tax asset |  | $ | 15,563 |  |  | $ | 5,389 |
As of December 31, 2011, after consideration of the federal impact, the Company had state income tax credit carryforwards of $0.6 million with various expirations through 2026, and other state income tax credit carryforwards of $15.4 million with unlimited lives. The Company had state net operating loss (NOL) carryforwards with potential tax benefits of $14.4 million expiring between 2014 and 2026. The state tax credit and NOL carryforwards are offset by valuation allowances totaling $22.8 million. As of December 31, 2011, the Company had federal and foreign tax attributes with potential tax benefits of $7.4 million, of which $2.2 million has an unlimited life and $5.2 million expire from 2013 to 2018. These attributes were offset by valuation allowances of $6.9 million. Income taxes paid were approximately $45.9 million in 2011, $46.0 million in 2010, and $20.0 million in 2009.

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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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