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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes [Abstract] |
Income Taxes | Note F—Income Taxes Income before income taxes and discontinued operations was derived from the following sources:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
United States |  | $ | 18,842 |  |  | $ | 9,007 |  |  | $ | 8,498 |
Foreign |  |  | 27,152 |  |  |  | 21,176 |  |  |  | 21,095 |
|  | $ | 45,994 |  |  | $ | 30,183 |  |  | $ | 29,593 |
The components of income taxes for the years ended December 31 are as follows:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 5,679 |  |  | $ | 1,768 |  |  | $ | 1,912 |
Foreign |  |  | 8,896 |  |  |  | 5,498 |  |  |  | 3,659 |
State and local |  |  | 1,123 |  |  |  | 809 |  |  |  | 507 |
|  |  | 15,698 |  |  |  | 8,075 |  |  |  | 6,078 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 726 |  |  |  | 342 |  |  |  | 81 |
Foreign |  |  | (1,199 | ) |  |  | (1,098 | ) |  |  | 615 |
State and local |  |  | (215 | ) |  |  | (144 | ) |  |  | (14 | )
|  |  | (688 | ) |  |  | (900 | ) |  |  | 682 |
Income taxes |  | $ | 15,010 |  |  | $ | 7,175 |  |  | $ | 6,760 |
The differences between the provision for income taxes at the U.S. federal statutory rate and the tax shown in the Statements of Consolidated Income for the years ended December 31 are summarized as follows:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
U. S. federal statutory tax rate |  |  | 35 | % |  |  | 35 | % |  |  | 34 | %
Federal tax at statutory rate |  | $ | 16,098 |  |  | $ | 10,564 |  |  | $ | 10,062 |
State and local taxes, net of federal benefit |  |  | 590 |  |  |  | 432 |  |  |  | 325 |
U.S. federal permanent items |  |  | (387 | ) |  |  | 12 |  |  |  | 461 |
Foreign earnings and related tax credits |  |  | 261 |  |  |  | 641 |  |  |  | 394 |
Non-U.S. tax rate variances |  |  | (1,510 | ) |  |  | (3,121 | ) |  |  | (918 | )
ASC 740 (formally FIN 48) |  |  | 21 |  |  |  | (368 | ) |  |  | (607 | )
Valuation allowance |  |  | 19 |  |  |  | (403 | ) |  |  | (480 | )
Tax credits |  |  | (265 | ) |  |  | (329 | ) |  |  | (77 | )
Gain from acquisition of business |  |  | — |  |  |  | — |  |  |  | (2,711 | )
Other, net |  |  | 183 |  |  |  | (253 | ) |  |  | 311 |
|  | $ | 15,010 |  |  | $ | 7,175 |  |  | $ | 6,760 |
Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax basis of assets and liabilities and their carrying value for financial statement purposes. The tax effects of temporary differences that give rise to the Company’s deferred tax assets and liabilities at December 31 are as follows:
|  |  | September 30, |  |  |  | September 30, |
|  | 2011 |  |  | 2010 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued compensation and benefits |  | $ | 1,520 |  |  | $ | 1,126 |
Inventory valuation reserves |  |  | 1,938 |  |  |  | 1,798 |
Allowance for doubtful accounts |  |  | 138 |  |  |  | 69 |
Benefit plan reserves |  |  | 9,126 |  |  |  | 6,183 |
Foreign tax credits |  |  | 202 |  |  |  | 1,397 |
Capital tax loss carryforwards |  |  | 2,054 |  |  |  | 2,056 |
Net operating loss carryforwards |  |  | 1,061 |  |  |  | 937 |
Other accrued expenses |  |  | 1,882 |  |  |  | 1,565 |
Unrealized foreign exchange |  |  | 346 |  |  |  | — |
Gross deferred tax assets |  |  | 18,267 |  |  |  | 15,131 |
Valuation allowance |  |  | (3,115 | ) |  |  | (2,993 | )
Net deferred tax assets |  |  | 15,152 |  |  |  | 12,138 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and other basis differences |  |  | (4,602 | ) |  |  | (3,535 | )
Undistributed foreign earnings |  |  | (139 | ) |  |  | (236 | )
Prepaid expenses |  |  | (64 | ) |  |  | (70 | )
Intangibles |  |  | (2,706 | ) |  |  | (3,299 | )
Unrealized foreign exchange |  |  | — |  |  |  | (166 | )
Other |  |  | (104 | ) |  |  | (109 | )
Deferred tax liabilities |  |  | (7,615 | ) |  |  | (7,415 | )
Net deferred tax assets |  | $ | 7,537 |  |  | $ | 4,723 |
|  |  | September 30, |  |  |  | September 30, |
|  | 2011 |  |  | 2010 |
Change in net deferred tax assets: |  |  |  |  |  |  |  |
Deferred income tax benefit |  | $ | 688 |  |  | $ | 900 |
Items of other comprehensive income (loss) |  |  | 2,175 |  |  |  | (202 | )
Currency translation |  |  | (49 | ) |  |  | 78 |
Deferred tax balances from business acquisition |  |  | — |  |  |  | (2,148 | )
Total change in net deferred tax assets |  | $ | 2,814 |  |  | $ | (1,372 | )
Deferred taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income tax bases of assets and liabilities and operating loss and tax credit carryforwards. At December 31, 2011, the Company had $.2 million of U.S. foreign tax credit carryforwards that will expire in 2014, $2.1 million of U.S. capital loss carryfowards that will expire in 2013 and $1 million of foreign net operating loss carryfowards that will expire between the years 2012 and 2015. The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. Based on this evaluation, the Company has established a valuation allowance of $3.1 million at December 31, 2011 in order to measure only the portion of the deferred tax asset that is more likely than not will be realized. Therefore, the Company recorded an allowance of $2.1 million against the U.S. capital loss carryfoward and $1 million against the foreign net operating loss carryforwards. The net increase of $.1 million in the valuation allowance is primarily due to foreign net operating loss carryfowards. In 2010, the net decrease in the valuation allowance was primarily due to the reversal of U.S. foreign tax credit carryforwards. As of December 31, 2011, the Company established a deferred tax liability of $.1 million associated with undistributed foreign earnings of $1.3 million. The Company has not established a deferred tax liability associated with approximately $118 million of its undistributed foreign earnings at December 31, 2011 as these earnings are considered to be permanently reinvested. These earnings would be taxable upon the sale or liquidation of these foreign subsidiaries, or upon the remittance of dividends. While the measurement of the unrecognized U.S. income taxes with respect to these earnings is not practicable, foreign tax credits would be available to offset some or all of any portion of such earnings that would be remitted as dividends. Income taxes paid, net of refunds, were approximately $14 million in 2011, $8.4 million in 2010, and $5.8 million in 2009. The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. As of December 31, 2011, with few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2005. The changes in unrecognized tax benefits for the years ended December 31 are as follows:
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Balance at January 1 |  | $ | 1,062 |  |  | $ | 1,304 |  |  | $ | 1,176 |
Additions for tax positions of current year |  |  | — |  |  |  | 53 |  |  |  | 164 |
Additions for tax positions of prior years |  |  | — |  |  |  | 62 |  |  |  | 678 |
Reductions for tax positions of prior years |  |  | (32 | ) |  |  | (281 | ) |  |  | (79 | )
Expiration of statutes of limitations |  |  | (15 | ) |  |  | (76 | ) |  |  | (635 | )
Balance at December 31 |  | $ | 1,015 |  |  | $ | 1,062 |  |  | $ | 1,304 |
Accrued interest and penalties are not included in the above unrecognized tax balances. The Company records accrued interest as well as penalties related to unrecognized tax benefits as part of the provision for income taxes. The Company recognized less than $.1 million, $.1 million and $(.2) in interest, net of the amount lapsed through expiring statutes during the years ended December 31, 2011, 2010 and 2009, respectively. The Company had approximately $.5 million, $.4 million and $.3 million for the payment of interest accrued at December 31, 2011, 2010 and 2009, respectively. The Company had approximately $.3 million accrued for the payment of penalties at December 31, 2011, 2010 and 2009. If recognized, approximately $.5 million, $.4 million, and $.7 million of unrecognized tax benefits would affect the tax rate for the years ended December 31, 2011, 2010 and 2009, respectively. The Company does not expect that the unrecognized tax benefits will change significantly within the next twelve months.

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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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