Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Provision for Income Tax Expense (Benefit)

The provision for income tax expense (benefit) consisted of the following:

	(In thousands)
	Years Ended December 31,
	2012			2011			2010
Current tax expense (benefit)
Federal	$	7,608		$	2,133		$	6,204
State		(579	)		(223	)		(854	)
		7,029			1,910			5,350
Deferred tax expense (benefit)
Federal		(260	)		(6,044	)		(686	)
State		(1,191	)		(608	)		191
		(1,451	)		(6,652	)		(495	)
Income tax expense (benefit)	$	5,578		$	(4,742	)	$	4,855

Summary of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) were composed of the following:

	(In thousands)
	December 31,
	2012			2011
Accrued expenses	$	386		$	672
Allowance for doubtful accounts		213			195
Contract overrun reserves		139			192
Deferred compensation		164			1,139
Employment-related reserves		6,088			5,700
Environmental reserves		762			895
Inventory reserves		4,123			5,238
Pension obligation		4,445			4,574
Prepaid insurance		406			308
State net operating loss carryforwards		818			818
State tax credit carryforwards		3,253			1,849
Stock-based compensation		4,012			4,003
Workers’ compensation		35			17
Other		970			286
		25,814			25,886
Depreciation		(5,424	)		(7,663	)
Goodwill		(5,764	)		(3,400	)
Intangibles		(66,604	)		(71,163	)
Unbilled receivables		(1,251	)		(1,675	)
Valuation allowance		(4,120	)		(2,008	)
Net deferred tax assets (liabilities)	$	(57,349	)	$	(60,023	)

Principle Reasons for Variation Between Expected and Effective Tax Rate

The principal reasons for the variation between expected and effective tax rates were as follows:

	Years Ended December 31,
	2012			2011			2010
Statutory federal income tax rate		35.0	%		(35.0	)%		35.0	%
State income taxes (net of federal benefit)		(2.8	)		(2.2	)		0.3
Acquisition costs		—			2.0			—
Benefit of qualified domestic production activities		(2.7	)		(0.5	)		(3.5	)
Benefit of research and development tax credits		(4.3	)		(2.6	)		(6.2	)
Book income not subject to tax		—			—			(0.8	)
Goodwill impairment		—			28.8			—
Increase in valuation allowance		9.9			—			2.4
Reduction of state effective tax rate		(7.0	)		—			—
Reduction of tax reserves		(4.0	)		—			(7.4	)
Unremitted earnings (losses) of foreign subsidiary		0.8			0.3			(0.5	)
Other		0.4			0.1			0.4
Effective income tax rate		25.3	%		(9.1	)%		19.7	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

	(In thousands)
	Years Ended December 31,
	2012			2011
Balance at January 1,	$	2,194		$	1,343
Additions based on tax positions related to the current year		214			536
Additions for tax positions for prior years		68			482
Reductions for tax positions of prior years		(820	)		(167	)
Balance at December 31,	$	1,656		$	2,194