Note 15.

Income Taxes

Significant components of the Company's deferred tax liabilities and assets as of December 31, 2011 and 2010 are as follows:

	2011			2010
Deferred tax liabilities:	In thousands
Goodwill and other intangibles	$	(12,884	)	$	(13,452	)
Depreciation		(3,499	)		(2,080	)
Inventories		(4,333	)		(2,979	)
Unrepatriated earnings of foreign subsidiary		(428	)		(428	)
Other-net		(174	)		0
Total deferred tax liabilities		(21,318	)		(18,939	)
Deferred tax assets:
Pension liability		3,210			2,313
Warranty reserve		2,058			1,712
Deferred compensation		1,601			1,146
Accounts receivable		924			845
Long-term liabilities		675			1,410
Deferred gain on sale / leaseback		178			593
State tax incentives		5			56
Net operating loss carryforwards		88			100
Foreign tax credit carryforwards		112			196
Other-net		0			90
Total deferred tax assets		8,851			8,461
Valuation allowance for deferred tax assets		0			0
Deferred tax assets		8,851			8,461
Net deferred tax (liability) / asset	$	(12,467	)	$	(10,478	)

Significant components of the provision for income taxes are as follows:

	2011			2010			2009
	In thousands
Current:
Federal	$	4,573		$	10,300		$	8,990
State		494			789			1,441
Foreign		2,493			31			0
Total current		7,560			11,120			10,431
Deferred:
Federal		3,446			1,204			(783	)
State		553			111			108
Foreign		(515	)		(185	)		0
Total deferred		3,484			1,130			(675	)
Total income tax expense	$	11,044		$	12,250		$	9,756

The company has unrecorded deferred income taxes on the undistributed earnings of its foreign subsidiaries because of management's intent and practice to indefinitely reinvest such earnings. At December 31, 2011, the aggregate undistributed earnings of the foreign subsidiaries (including cumulative unrealized currency gains related to previously taxed income) amounted to approximately $40,556,000. Upon distribution of these earnings in the form of dividends or otherwise, the Company may be subject to U.S. income taxes and foreign withholding taxes. It is not practical, however, to estimate the amount of taxes that may be payable on the eventual remittance of these earnings because of the complexity of the calculation.

Income before income taxes, as shown in the accompanying consolidated statements of operations, includes the following components:

	2011		2010			2009
	In thousands
Domestic	$	24,720	$	32,845		$	25,483
Foreign		9,219		(103	)		0
Income before income taxes	$	33,939	$	32,742		$	25,483

The reconciliation of income tax computed at statutory rates to income tax expense is as follows:

	2011	2010	2009
Statutory rate	35.0%	35.0%	35.0%
Rates different than statutory	(2.2)	0.0	0.0
State income tax	2.1	2.2	4.0
Nondeductible expenses	0.7	0.2	(1.0)
Tax credits	(1.9)	0.0	0.0
Other	(1.2)	0.0	0.3
	32.5%	37.4%	38.3%

At December 31, 2011 and 2010, the tax benefit of net operating loss carryforwards available for state income tax purposes was approximately $88,000 and $100,000, respectively. The net operating loss carryforwards will expire in 2017 through 2024. The Company has foreign tax credit carryforwards in the amount of $112,000 that will expire in 2012 through 2016. The Company received approximately $903,000 in state tax refunds in 2011 not previously recognized by the Company as realization was not more likely than not.

The following table provides a reconciliation of unrecognized tax benefits as of December 31, 2011 and 2010:

	2011			2010
	In thousands
Unrecognized tax benefits at beginning of period:	$	645		$	119
Portec acquisition		0			581
Increases based on tax positions for prior periods		1,401			0
Increases based on tax positions related to current period		34			0
Decreases related to settlements with taxing authorities		(139	)		0
Decreases as a result of a lapse of the applicable statute of limitations		(92	)		(55	)
Balance at end of period	$	1,849		$	645

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $1,849,000 at December 31, 2011. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. At December 31, 2011, the Company had accrued interest and penalties related to unrecognized tax benefits of $316,000.

The Company files income tax returns in the United States and in various state, local and foreign jurisdictions. The Company is subject to federal income tax examinations for the period 2008 forward. With respect to the state, local and foreign filings, the Company is generally subject to income tax examinations for the periods 2007 forward.