XML 54 R22.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes |
14. | Income Taxes
Income from continuing operations for the three years ended December 31, was as follows:
| 2013 |  | 2012 |  | 2011
U.S. operations | $ | 54,702 |  |  | $ | 47,220 |  |  | $ | 40,282 |
Foreign operations | 5,176 |  |  | 12,670 |  |  | 8,448 |
Total | $ | 59,878 |  |  | $ | 59,890 |  |  | $ | 48,730 |
Income tax expense (benefit) for the three years ended December 31, was as follows:
| 2013 |  | 2012 |  | 2011
Current: |  |  |  |  |
Federal | $ | 13,551 |  |  | $ | 8,158 |  |  | $ | 10,321 |
Foreign | 3,567 |  |  | 4,633 |  |  | 2,277 |
State | 1,136 |  |  | 1,089 |  |  | 1,450 |
| $ | 18,254 |  |  | $ | 13,880 |  |  | $ | 14,048 |
Deferred: |  |  |  |  |  |  |  |
Federal | $ | 1,856 |  |  | $ | 4,423 |  |  | $ | 2,330 |
Foreign | (424 | ) |  | (126 | ) |  | (203 | )
State | (39 | ) |  | 129 |  |  | (158 | )
| $ | 1,393 |  |  | $ | 4,426 |  |  | $ | 1,969 |
Total: |  |  |  |  |  |  |  |
Federal | $ | 15,407 |  |  | $ | 12,581 |  |  | $ | 12,651 |
Foreign | 3,143 |  |  | 4,507 |  |  | 2,074 |
State | 1,097 |  |  | 1,218 |  |  | 1,292 |
Total Income Tax Expense | $ | 19,647 |  |  | $ | 18,306 |  |  | $ | 16,017 |
U.S. income taxes have not been provided on approximately $23,596 of undistributed earnings of non-U.S. subsidiaries. We do not have any plans to repatriate the undistributed earnings. Any repatriation from foreign subsidiaries that would result in incremental U.S. taxation is not being considered. It is management’s belief that reinvesting these earnings outside the U.S. is the most efficient use of capital. We have Dutch and German tax loss carryforwards of approximately $18,046 and $15,674, respectively. If unutilized, the Dutch tax loss carryforward will expire after 9 years. The German tax loss carryforward has no expiration date. Because of the uncertainty regarding realization of the Dutch tax loss carryforward, a valuation allowance was established. This valuation allowance increased in 2013 due to results of operations. We have U.S. foreign tax credit carryforwards of approximately $3,157. If unutilized, foreign tax credit carryforwards will expire in 2020. Based upon evaluation, as of December 31, 2013, no valuation allowance has been recorded. We have Dutch foreign tax credit carryforwards of $922. Because of the uncertainty regarding utilization of the Dutch foreign tax credit carryforward, a valuation allowance was established. A valuation allowance for the remaining deferred tax assets is not required since it is more likely than not that they will be realized through carryback to taxable income in prior years, future reversals of existing taxable temporary differences and future taxable income. Our effective income tax rate varied from the U.S. federal statutory tax rate for the three years ended December 31, as follows:
| 2013 |  | 2012 |  | 2011
Tax at statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Increases (decreases) in the tax rate from: |  |  |  |  |  |
State and local taxes, net of federal benefit | 1.7 |  |  | 1.0 |  |  | 2.0 |
Effect of foreign operations | (3.3 | ) |  | (6.2 | ) |  | 0.5 |
Effect of changes in valuation allowances | 3.7 |  |  | 2.3 |  |  | — |
Domestic production activities deduction | (1.6 | ) |  | (1.5 | ) |  | (1.6 | )
Other, net | (2.7 | ) |  | — |  |  | (3.0 | )
Effective income tax rate | 32.8 | % |  | 30.6 | % |  | 32.9 | %
Deferred tax assets and liabilities were comprised of the following as of December 31:
| 2013 |  | 2012 |  | 2011
Deferred Tax Assets: |  |  |  |  |
Inventories, principally due to additional costs inventoried for tax purposes and changes in inventory reserves | $ | — |  |  | $ | 28 |  |  | $ | 426 |
Employee wages and benefits, principally due to accruals for financial reporting purposes | 14,831 |  |  | 18,608 |  |  | 20,910 |
Warranty reserves accrued for financial reporting purposes | 2,803 |  |  | 2,641 |  |  | 2,625 |
Receivables, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals | 1,593 |  |  | 1,540 |  |  | 1,464 |
Tax loss carryforwards | 8,696 |  |  | 6,619 |  |  | 5,915 |
Tax credit carryforwards | 4,078 |  |  | 6,720 |  |  | 8,554 |
Other | 2,523 |  |  | 2,329 |  |  | 1,777 |
Gross Deferred Tax Assets | $ | 34,524 |  |  | $ | 38,485 |  |  | $ | 41,671 |
Less: valuation allowance | (7,243 | ) |  | (4,719 | ) |  | (3,229 | )
Total Net Deferred Tax Assets | $ | 27,281 |  |  | $ | 33,766 |  |  | $ | 38,442 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Inventories, principally due to changes in inventory reserves | $ | 306 |  |  | $ | — |  |  | $ | — |
Property, Plant and Equipment, principally due to differences in depreciation and related gains | 7,446 |  |  | 7,945 |  |  | 9,167 |
Goodwill and Intangible Assets | 6,253 |  |  | 6,818 |  |  | 7,093 |
Total Deferred Tax Liabilities | $ | 14,005 |  |  | $ | 14,763 |  |  | $ | 16,260 |
Net Deferred Tax Assets | $ | 13,276 |  |  | $ | 19,003 |  |  | $ | 22,182 |
The valuation allowance at December 31, 2013 principally applies to Dutch tax loss and tax credit carryforwards that, in the opinion of management, are more likely than not to expire unutilized. However, to the extent that tax benefits related to these carryforwards are realized in the future, the reduction in the valuation allowance will reduce income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2013 |  | 2012
Balance at January 1, | $ | 3,480 |  |  | $ | 3,424 |
Increases as a result of tax positions taken during a prior period | 155 |  |  | — |
Increases as a result of tax positions taken during the current year | 508 |  |  | 611 |
Reductions as a result of a lapse of the applicable statute of limitations | (295 | ) |  | (447 | )
Decreases as a result of foreign currency fluctuations | (188 | ) |  | (108 | )
Balance at December 31, | $ | 3,660 |  |  | $ | 3,480 |
Included in the balance of unrecognized tax benefits at December 31, 2013 and 2012 are potential benefits of $3,384 and $3,259, respectively, that if recognized, would affect the effective tax rate from continuing operations. We recognize potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. In addition to the liability of $3,660 and $3,480 for unrecognized tax benefits as of December 31, 2013 and 2012 was approximately $525 and $462, respectively, for accrued interest and penalties. To the extent interest and penalties are not assessed with respect to uncertain tax positions, the amounts accrued will be revised and reflected as an adjustment to income tax expense. We are subject to U.S. federal income tax as well as income tax of numerous state and foreign jurisdictions. We are generally no longer subject to U.S. federal tax examinations for taxable years before 2011 and, with limited exceptions, state and foreign income tax examinations for taxable years before 2007. We are currently undergoing income tax examinations in various state and foreign jurisdictions covering 2007 to 2011. Although the final outcome of these examinations cannot be currently determined, we believe that we have adequate reserves with respect to these examinations. We do not anticipate that total unrecognized tax benefits will change significantly within the next 12 months.

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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 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=26873400&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 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: 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 6: 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