XML 62 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Taxes |
Income Taxes | 10. Income Taxes The provision for income taxes from continuing operations consisted of the following: (in thousands)
|  | Years Ended December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Current |  |  |  |  |  |  |
Federal |  | $ | 13,163 |  | $ | 21,040 |  | $ | 20,310 |
State |  | 2,732 |  | 4,427 |  | 3,896 |
Foreign |  | 3,920 |  | 4,582 |  | 3,417 |
Deferred |  |  |  |  |  |  |
Federal |  | (544 | ) | (574 | ) | 3,673 |
State |  | (98 | ) | (358 | ) | 1,726 |
Foreign |  | 830 |  | (1,231 | ) | 217 |
|  | $ | 20,003 |  | $ | 27,886 |  | $ | 33,239 |
Income and loss from continuing operations before income taxes for the years ended December 31, 2012, 2011 and 2010, consisted of the following: (in thousands)
|  | Years Ended December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Domestic |  | $ | 65,705 |  | $ | 68,961 |  | $ | 78,183 |
Foreign |  | (3,784 | ) | 9,825 |  | (146 | )
|  | $ | 61,921 |  | $ | 78,786 |  | $ | 78,037 |
Reconciliations between the statutory federal income tax rates and the Company’s effective income tax rates as a percentage of income before income taxes for its continuing operations were as follows: (in thousands)
|  | Years Ended December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Federal tax rate |  | 35.0 | % | 35.0 | % | 35.0 | %
State taxes, net of federal benefit |  | 2.9 | % | 3.4 | % | 4.9 | %
Tax benefit of domestic manufacturing deduction |  | (2.1 | )% | (2.5 | )% | (2.3 | )%
Change in valuation allowance |  | 6.0 | % | (0.3 | )% | 3.3 | %
Difference between United States statutory and foreign local tax rates |  | 2.6 | % | 0.3 | % | 2.0 | %
Change in uncertain tax position |  | (0.3 | )% | (0.0 | )% | (0.7 | )%
Worthless stock deduction on Irish subsidiary |  | (15.4 | )% | 0.0 | % | 0.0 | %
Non-deductible goodwill write-off |  | 1.1 | % | 0.0 | % | 0.0 | %
Non-deductible professional fee |  | 1.3 | % | 0.0 | % | 0.0 | %
Other |  | 1.2 | % | (0.5 | )% | 0.4 | %
Effective income tax rate |  | 32.3 | % | 35.4 | % | 42.6 | %
In 2012, the Company recorded a worthless stock deduction for its investment in the Company’s wholly-owned Irish subsidiary. The deduction resulted in approximately $9.9 million tax benefit on the Company’s U.S. tax returns. The tax effects of the significant temporary differences that constitute the deferred tax assets and liabilities at December 31, 2012, 2011 and 2010, were as follows: (in thousands)
|  | December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Current deferred tax assets |  |  |  |  |  |  |
State tax |  | $ | 1,133 |  | $ | 1,586 |  | $ | 1,197 |
Workers’ compensation |  | 1,814 |  | 2,123 |  | 1,816 |
Health claims |  | 516 |  | 549 |  | 519 |
Vacation liability |  | 1,037 |  | 865 |  | 786 |
Allowance for doubtful accounts |  | 332 |  | 291 |  | 351 |
Inventories |  | 5,713 |  | 4,796 |  | 5,141 |
Sales incentive and advertising allowances |  | 580 |  | 408 |  | 399 |
State tax credit carry forward |  | — |  | — |  | 125 |
Intangible rights write-off |  | — |  | 194 |  | — |
Acquisition expenses |  | — |  | 477 |  | — |
Unrealized foreign exchange gain or loss |  | 39 |  | 57 |  | 86 |
Other, net |  | 309 |  | 428 |  | 271 |
|  | 11,473 |  | 11,774 |  | 10,691 |
Less valuation allowances |  | — |  | — |  | (502 | )
|  | $ | 11,473 |  | $ | 11,774 |  | $ | 10,189 |
Long-term deferred tax assets (liabilities) |  |  |  |  |  |  |
Depreciation |  | $ | (2,434 | ) | $ | (3,067 | ) | $ | (1,614 | )
Goodwill and other intangibles amortization |  | (4,086 | ) | (314 | ) | (1,447 | )
Deferred compensation related to stock options |  | 7,296 |  | 5,485 |  | 4,841 |
Uncertain tax positions’ unrecognized tax benefits |  | 1,140 |  | 1,115 |  | 1,438 |
Keymark investments basis difference |  | — |  | — |  | 663 |
Non-United States tax loss carry forward |  | 8,064 |  | 5,912 |  | 5,548 |
Tax effect on cumulative translation adjustment |  | (763 | ) | (812 | ) | (826 | )
Other |  | 526 |  | 811 |  | 641 |
|  | 9,743 |  | 9,130 |  | 9,244 |
Less valuation allowances |  | (9,719 | ) | (6,279 | ) | (6,665 | )
|  | $ | 24 |  | $ | 2,851 |  | $ | 2,579 |
The total deferred tax assets for the years ended December 31, 2012, 2011 and 2010, were $21.6 million, $21.4 million and $19.2 million, respectively. The total deferred tax liabilities for the years ended December 31, 2012, 2011, and 2010, were $10.1 million, $6.7 million and $6.5 million, respectively. At December 31, 2012, the Company had $41.0 million of pre-tax loss carryforwards in various non-United States taxing jurisdictions, of which about $16.7 million belonged to the Company’s wholly owned Irish subsidiary. Tax loss carryforwards of $0.9 million, $1.6 million, $0.8 million $0.8 million and $1.8 million will expire in 2013, 2014, 2015, 2016 and 2017, respectively, if not utilized. The remaining tax losses can be carried forward indefinitely. At December 31, 2012 and 2011, the Company had deferred tax valuation allowances of $9.7 million and $6.3 million, respectively. The valuation allowance increased $3.4 million and $2.3 million for the years ended December 31, 2012 and 2010, respectively, and decreased $0.9 million for the year ended December 31, 2011. The Company does not provide for federal income taxes on the undistributed earnings of its international subsidiaries because such earnings are reinvested and, in the Company’s opinion, will continue to be reinvested indefinitely. At December 31, 2012, 2011 and 2010, the Company had not provided for federal income taxes on undistributed earnings of $29.0 million, $20.9 million and $14.6 million, respectively, from its international subsidiaries. Should these earnings be distributed in the form of dividends or otherwise, the Company would be subject to both United States income taxes and withholding taxes in various international jurisdictions. These taxes may be partially offset by United States foreign tax credits. Determination of the related amount of unrecognized deferred United States income taxes is not practicable because of the complexities associated with this hypothetical calculation. United States federal income taxes are provided on the earnings of the Company’s foreign branches, which are included in the United States federal income tax return. A reconciliation of the beginning and ending amounts of unrecognized tax benefits in 2012, 2011 and 2010 was as follows, including foreign translation amounts: (in thousands)
|  | 2012 |  | 2011 |  | 2010 |
Balance at January 1 |  | $ | 4,683 |  | $ | 5,862 |  | $ | 6,422 |
Additions based on tax positions related to prior years |  | 527 |  | 18 |  | 1,236 |
Reductions based on tax positions related to prior years |  | (1,163 | ) | (681 | ) | (537 | )
Additions for tax positions of the current year |  | 933 |  | 570 |  | 951 |
Settlements |  | (486 | ) | (362 | ) | (59 | )
Lapse of statute of limitations |  | (651 | ) | (724 | ) | (2,151 | )
Balance at December 31 |  | $ | 3,843 |  | $ | 4,683 |  | $ | 5,862 |
Included in the balance of unrecognized tax benefits at December 31, 2012, 2011 and 2010, are tax positions of $0.9 million, $1.1 million and $1.2 million, respectively, which, if recognized, would reduce the effective tax rate. The Company does not believe it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense, which is a continuation of the Company’s historical accounting policy. During the years ended December 31, 2012, 2011 and 2010, accrued interest decreased by $0.4 million, $0.0 million and $0.5 million, respectively, as a result of the reversal of accrued interest associated with the lapse of statutes of limitations. At December 31, 2012, 2011 and 2010, the Company had accrued $0.7 million, $1.1 million and $1.1 million, respectively, for the potential payment of interest, before income tax benefits. At December 31, 2012, the Company remained subject to United States federal income tax examinations for the tax years 2009 through 2012. In addition, the Company remained subject to state, local and foreign income tax examinations primarily for the tax years 2007 through 2012.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 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 2: 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 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: 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 6: 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 7: 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 8: 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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration