XML 28 R25.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Taxes [Abstract] |
Income Taxes |
16. | Income Taxes
The income tax provision (benefit) consists of the following (in thousands):
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |  |
Domestic |  | $ | 31,220 |  |  | $ | 17,791 |  |  | $ | 10,887 |
Foreign |  |  | 1,706 |  |  |  | 1,362 |  |  |  | 1,108 |
Total current |  |  | 32,926 |  |  |  | 19,153 |  |  |  | 11,995 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | (1,178 | ) |  |  | 5,909 |  |  |  | (11,886 | )
Foreign |  |  | 171 |  |  |  | (84 | ) |  |  | 12 |
Total deferred |  |  | ( 1,007 | ) |  |  | 5,825 |  |  |  | (11,874 | )
Total income tax provision |  | $ | 31,919 |  |  | $ | 24,978 |  |  | $ | 121 |
We have not provided for U.S. income taxes on the undistributed earnings of our foreign subsidiaries that are deferred from U.S. income taxation and that we intend to be permanently reinvested. Cumulative undistributed earnings of foreign subsidiaries on which no U.S. income tax has been provided were $25.5 million at the end of 2013, $27.6 million at the end of 2012 and $19.9 million at the end of 2011. Earnings before income taxes for foreign operations amounted to approximately $6.4 million, $4.4 million and $4.3 million in 2013, 2012 and 2011, respectively. Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
U.S. Federal income tax rate of 35% |  | $ | 29,737 |  |  | $ | 23,781 |  |  | $ | 22,557 |
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | 2,936 |  |  |  | 2,021 |  |  |  | 2,261 |
Income tax (tax benefits) attributable to foreign income |  |  | (428 | ) |  |  | (852 | ) |  |  | (163 | )
Change in unrecognized tax benefits |  |  | — |  |  |  | — |  |  |  | (454 | )
Other non-deductible items, net |  |  | (806 | ) |  |  | 697 |  |  |  | (2,455 | )
Change in valuation allowance |  |  | 480 |  |  |  | (669 | ) |  |  | (21,625 | )
Provision for income taxes |  | $ | 31,919 |  |  | $ | 24,978 |  |  | $ | 121 |
The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands):
|  | December 31, |
|  | 2013 |  |  | 2012 |
Deferred tax assets: |  |  |  |  |  |
Inventories |  | $ | 16,801 |  |  | $ | 16,115 |
Allowance for customer returns |  |  | 11,622 |  |  |  | 10,660 |
Postretirement benefits |  |  | 2,446 |  |  |  | 2,911 |
Allowance for doubtful accounts |  |  | 2,592 |  |  |  | 2,223 |
Accrued salaries and benefits |  |  | 9,110 |  |  |  | 7,924 |
Net operating loss |  |  | — |  |  |  | 84 |
Capital loss |  |  | 5,999 |  |  |  | 6,007 |
Tax credit carryforwards |  |  | 695 |  |  |  | 1,167 |
Deferred gain on building sale |  |  | 1,713 |  |  |  | 2,123 |
Accrued asbestos liabilities |  |  | 9,780 |  |  |  | 10,358 |
Other |  |  | — |  |  |  | 470 |
|  |  | 60,758 |  |  |  | 60,042 |
Valuation allowance (1) |  |  | (6,694 | ) |  |  | (7,174 | )
Total deferred tax assets |  |  | 54,064 |  |  |  | 52,868 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | 7,583 |  |  |  | 8,328 |
Promotional costs |  |  | 187 |  |  |  | 197 |
Other |  |  | 383 |  |  |  | — |
Total deferred tax liabilities |  |  | 8,153 |  |  |  | 8,525 |
Net deferred tax assets |  | $ | 45,911 |  |  | $ | 44,343 |
| (1) | Current net deferred tax assets are $35.6 million and $33.2 million for 2013 and 2012, respectively. Non-current net deferred tax assets are $10.3 million and $11.1 million for 2013 and 2012, respectively. The tax valuation allowance was allocated to long term deferred tax assets in the amounts of $6.7 million and $7.2 million in 2013 and 2012, respectively. None of the valuation allowance was allocated to current deferred tax assets in 2013 and 2012.
In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient taxable income in those periods in which temporary differences become deductible and/or net operating loss carryforwards can be utilized. We consider the level of historical taxable income, scheduled reversal of temporary differences, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. We also consider cumulative losses in recent years as well as the impact of one-time events in assessing our pre-tax earnings. Assumptions regarding future taxable income require significant judgment. Our assumptions are consistent with estimates and plans used to manage our business. In December 2011, we realized a non-recurring non-cash benefit of $21.5 million in our tax provision related to a reduction of a significant portion of our deferred tax valuation allowance on net U.S. deferred tax assets. In assessing the ability to recognize our deferred tax assets, we reviewed all positive and negative evidence and considered historical book and taxable income, the scheduled reversal of deferred tax assets and liabilities, and projected future book and taxable income. Based upon this detailed assessment, we determined that it is more likely than not that a significant portion of our net U.S. deferred tax assets, for which a valuation allowance had been previously recorded, will be realized and, as such, reversed $21.5 million of the valuation allowance on net U.S. deferred tax assets. The valuation allowance of $6.7 million as of December 31, 2013 was intended to provide for uncertainty regarding the ultimate realization of our state tax credit carryovers, U.S. capital loss carryforwards, and U.S. foreign tax credit carryovers. Based on these considerations, we believed it was more likely than not that we would realize the benefit of the net deferred tax asset of $45.9 million as of December 31, 2013, which was net of the remaining valuation allowance. At December 31, 2013, we have foreign tax credit carryforwards of approximately $0.6 million that will expire in varying amounts by 2020, and a capital loss carryforward of $15.5 million that will expire in 2014. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
Balance at January 1, 2012 |  | $ | 349 |
Increase based on tax positions taken in the current year |  |  | — |
Decrease based on tax positions taken in the current year |  |  | — |
Balance at December 31, 2012 |  |  | 349 |
Increase based on tax positions taken in the current year |  |  | — |
Decrease based on tax positions taken in the current year |  |  | — |
Balance at December 31, 2013 |  | $ | 349 |
The amount of unrecognized tax benefits at December 31, 2013, if ultimately recognized, will reduce our annual effective tax rate. We are subject to taxation in the U.S. and various state, local and foreign jurisdictions. As of December 31, 2013, the Company is no longer subject to U.S. Federal tax examinations for years before 2010. We remain subject to examination by state and local tax authorities for tax years 2009 through 2013. Foreign jurisdictions have statutes of limitations generally ranging from 2 to 6 years. Years still open to examination by foreign tax authorities in major jurisdictions include Canada (2009 onward), Hong Kong (2008 onward) and Poland (2008 onward). We do not presently anticipate that our unrecognized tax benefits will significantly increase or decrease prior to September 15, 2014, the due date for the U.S. Federal tax return; however, actual developments in this area could differ from those currently expected. We recognize interest and penalties associated with income tax matters as components of the “provision for income taxes.”

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