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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2011
Schedule of Income before Income Tax, Domestic and Foreign | Earnings before taxes is summarized as follows:
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (dollars in thousands) |
Domestic |  | $ | 125,730 |  |  | $ | 104,421 |  |  | $ | 96,788 |
Foreign |  |  | 14,719 |  |  |  | 9,815 |  |  |  | 2,938 |
Total |  | $ | 140,449 |  |  | $ | 114,236 |  |  | $ | 99,726
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is summarized as follows:
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (dollars in thousands) |
Federal |  | $ | 33,778 |  |  | $ | 31,309 |  |  | $ | 31,359 |
State and local |  |  | 7,169 |  |  |  | 7,052 |  |  |  | 6,100 |
Foreign |  |  | 4,028 |  |  |  | 3,008 |  |  |  | 1,111 |
Total |  | $ | 44,975 |  |  | $ | 41,369 |  |  | $ | 38,570 |
Current |  | $ | 39,554 |  |  | $ | 39,949 |  |  | $ | 27,447 |
Deferred |  |  | 5,421 |  |  |  | 1,420 |  |  |  | 11,123 |
Total |  | $ | 44,975 |  |  | $ | 41,369 |  |  | $ | 38,570
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate are as follows:
|  | 2011 |  |  | 2010 |  |  | 2009 |
U.S. federal statutory tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State taxes, net of federal benefit |  |  | 3.0 |  |  |  | 4.1 |  |  |  | 4.0 |
Tax reflief for U.S. manufacturers |  |  | (2.1 | ) |  |  | (1.9 | ) |  |  | (0.6 | )
Permanent book vs. tax differences |  |  | (1.1 | ) |  |  | (1.3 | ) |  |  | (1.7 | )
U.S. taxes on foreign earnings and foreign tax rate differentials |  |  | (1.5 | ) |  |  | (0.3 | ) |  |  | (0.7 | )
Reserve adjustments and other |  |  | (1.3 | ) |  |  | 0.6 |  |  |  | 2.7 |
Consolidated effective tax |  |  | 32.0 | % |  |  | 36.2 | % |  |  | 38.7 | %
Schedule of Deferred Tax Assets and Liabilities | At December 31, 2011 and January 1, 2011, the company had recorded the following deferred tax assets and liabilities, which were comprised of the following:
|  | 2011 |  |  | 2010 |
|  | (dollars in thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Federal net operating loss carryforwards |  | $ | 20,430 |  |  | $ | 28,079 |
Compensation related |  |  | 18,654 |  |  |  | 12,474 |
Accrued retirement benefits |  |  | 8,780 |  |  |  | 5,228 |
Inventory reserves |  |  | 4,611 |  |  |  | 4,429 |
Product liability and workers compensation reserves |  |  | 5,052 |  |  |  | 4,295 |
Warranty reserves |  |  | 4,490 |  |  |  | 4,175 |
Receivable related reserves |  |  | 2,350 |  |  |  | 2,509 |
UNICAP |  |  | 2,138 |  |  |  | 1,984 |
Accrued plant closure |  |  | — |  |  |  | 868 |
State net operating loss carryforwards |  |  | 580 |  |  |  | 740 |
Interest rate swap |  |  | 1,114 |  |  |  | 676 |
Other |  |  | 10,802 |  |  |  | 8,805 |
Gross deferred tax assets |  |  | 79,001 |  |  |  | 74,262 |
Valuation allowance |  |  | — |  |  |  | — |
Deferred tax assets |  | $ | 79,001 |  |  | $ | 74,262 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangible assets |  | $ | (69,998 | ) |  | $ | (55,901 | )
Foreign tax earnings repatriation |  |  | (1,546 | ) |  |  | (2,266 | )
LIFO reserves |  |  | (161 | ) |  |  | (583 | )
Depreciation |  |  | (2,547 | ) |  |  | (497 | )
Other |  |  | (3,504 | ) |  |  | (1,353 | )
Deferred tax liabilities |  | $ | (77,756 | ) |  | $ | (60,600 | )
Net deferred tax assets (liabilities) |  | $ | 1,245 |  |  | $ | 13,662 |
Current deferred asset (liability) |  | $ | 39,090 |  |  | $ | 25,520 |
Long-term deferred asset (liability) |  |  | (37,845 | ) |  |  | (11,858 | )
Net deferred tax assets (liabilities) |  | $ | 1,245 |  |  | $ | 13,662
Summary of Income Tax Contingencies | The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended January 2, 2010, January 1, 2011 and December 31, 2011 (dollars in thousands):
Balance at January 3, 2009 |  | $ | 10,372 |
Increases to current year tax positions |  |  | 3,316 |
Increase to prior year tax positions |  |  | 7,474 |
Decrease to prior year tax positions |  |  | (911 | )
Balance at January 2, 2010 |  | $ | 20,251 |
Increases to current year tax positions |  |  | 3,524 |
Increase to prior year tax positions |  |  | 1,700 |
Decrease to prior year tax positions |  |  | (7,689 | )
Balance at January 1, 2011 |  | $ | 17,786 |
Increases to current year tax positions |  |  | 2,113 |
Increase to prior year tax positions |  |  | 334 |
Decrease to prior year tax positions |  |  | (2,393 | )
Settlements |  |  | (1,494 | )
Lapse of statute of limitations |  |  | (755 | )
Balance at December 31, 2011 |  | $ | 15,591
Summary of Income Tax Examinations | A summary of the tax years that remain subject to examination in the company’s major tax jurisdictions are:
United States – federal | 2008 – 2011
United States – states | 2004 – 2011
Austrailia | 2011
Brazil | 2010 - 2011
Canada | 2009 – 2011
China | 2003 – 2011
Denmark | 2007 – 2011
France | 2011
Germany | 2011
Italy | 2009 – 2011
Mexico | 2006 – 2011
Philippines | 2007 – 2011
South Korea | 2006 – 2011
Spain | 2008 – 2011
Taiwan | 2008 – 2011
United Kingdom | 2008 – 2011

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Topic 740 -SubTopic 10 -Publisher FASB -Number -Article -Subparagraph -Name Accounting Standards Codification -Paragraph 9 -Section 50 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 21 -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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
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