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Income Taxes (Notes)
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The components of income before income taxes are as follows:

    
 
2012
 
2011
 
2010
Domestic
$
123,691

 
$
117,497

 
$
88,308

Foreign
60,496

 
41,295

 
37,549

 
$
184,187

 
$
158,792

 
$
125,857



The income tax provision (benefit) consists of the following:
    
 
2012
 
2011
 
2010
Current:
 
 
 
 
 
Federal
$
41,280

 
$
43,953

 
$
36,482

State and local
10,319

 
8,560

 
8,253

Foreign
11,035

 
6,814

 
6,195

 
62,634

 
59,327

 
50,930

Deferred:
 
 
 
 
 
Federal
2,272

 
1,588

 
(651
)
State and local
(396
)
 
676

 
(147
)
       Foreign
113

 
—

 
—

 
1,989

 
2,264

 
(798
)
 
$
64,623

 
$
61,591

 
$
50,132


Note N - Income Taxes (continued)

A reconciliation between taxes computed at the federal statutory rate and the effective tax rate is as follows:
    
 
December 31,
 
2012
 
2011
 
2010
Income taxes at federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
%
Effects of foreign operations
(3.3
)
 
—

 
—

State and local income taxes - net of federal income tax benefit
3.4

 
3.9

 
3.9

Nondeductible items
0.1

 
0.3

 
0.2

Valuation allowance (reversal)
(0.3
)
 
(0.4
)
 
0.5

Other
0.2

 
—

 
0.2

Effective rate
35.1
 %
 
38.8
 %
 
39.8
%


The Company applies the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse.

In accordance with accounting guidance, the Company has opted to classify interest and penalties that would accrue according to the provisions of relevant tax law as income tax expense on the Consolidated Statements of Income. The Company determines the amount of interest expense to be recognized by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken on a tax return. The Company's tax years 2009 through 2012 remain open to examination by most taxing authorities. The Company has no unrecognized tax benefits recorded as of the year ended December 31, 2012.



















Note N - Income Taxes (continued)

The components of deferred tax assets and liabilities are as follows:    
 
December 31,
 
2012
 
2011
Current deferred tax assets (liabilities):
 
 
 
Receivable allowances
$
9,005

 
$
7,246

Inventory
1,588

 
1,975

Unrealized (gain) loss
58

 
(6
)
Accrued expenses
496

 
496

Other
(74
)
 
595

Gross current deferred tax asset
11,073

 
10,306

Valuation allowance
—

 
(595
)
 
11,073

 
9,711

Non-current deferred tax assets (liabilities):
 
 
 
Depreciation and amortization
(1,982
)
 
(1,889
)
Deferred compensation
8,200

 
4,902

Unremitted earnings of foreign subsidiaries
(10,224
)
 
—

Deferred rent
2,991

 
2,388

Amortization of goodwill
(3,097
)
 
(2,504
)
 Unrealized (gain) loss
(1,073
)
 
(561
)
Other
68

 
92

 
(5,117
)
 
2,428

Deferred tax assets
$
5,956

 
$
12,139



The Company's consolidated financial statements provide for any related tax liability on amounts that may be repatriated from foreign operations, aside from undistributed earnings of certain of the Company's foreign subsidiaries that are intended to be indefinitely reinvested in operations outside the U.S. The deferred tax liability of $10,224 reflects the amounts that may be repatriated from foreign operations. A portion of the amount established in the current year was based on the finalization of the purchase accounting in 2012 of Topline. The total amount of indefinitely reinvested earnings of foreign subsidiaries as of December 31, 2012 was $27,100. Accordingly, no provision has been made for United States income taxes which may become payable if those undistributed earnings of foreign subsidiaries are paid as dividends. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because such liability, if any, is subject to many variables and is dependent on circumstances existing if and when remittance occurs.