Income Taxes

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements [Abstract]

Income Taxes

NOTE F — INCOME TAXES

The income tax provision (benefit) attributable to continuing operations for the years ended December 31, 2012, 2011, and 2010, consists of the following:

	Year Ended December 31,
	2012		2011			2010
	(In Thousands)
Current
Federal	$	1,362		$	(1,661)		$	8,930
State		683			1,294			1,096
Foreign		9,396			6,875			4,993
		11,441			6,508			15,019
Deferred
Federal		(361)			(7,053)			(41,513)
State		(495)			(2,258)			(3,922)
Foreign		(1,156)			3,554			(52)
		(2,012)			(5,757)			(45,487)
Total tax provision (benefit)	$	9,429		$	751		$	(30,468)

A reconciliation of the provision (benefit) for income taxes attributable to continuing operations, computed by applying the federal statutory rate for the years ended December 31, 2012, 2011, and 2010, to income before income taxes and the reported income taxes, is as follows:

	Year Ended December 31,
	2012		2011			2010
	(In Thousands)
Income tax provision (benefit) computed at
statutory federal income tax rates	$	9,864		$	2,182		$	(25,827)
State income taxes (net of federal benefit)		122			(627)			(1,837)
Nondeductible expenses		2,340			1,577			1,654
Impact of international operations		(2,377)			(1,229)			(3,526)
Other		(520)			(1,152)			(932)
Total tax provision (benefit)	$	9,429		$	751		$	(30,468)

^{The provision (benefit) for income taxes includes amounts related to the anticipated repatriation of certain earnings of our non-U.S. subsidiaries. Undistributed earnings above the amounts upon which taxes have been provided, which was $36.9 million at December 31, 2012, are intended to be permanently invested. It is not practicable to determine the amount of applicable taxes that would be incurred if any such earnings were repatriated.}

^{Income (loss) before taxes and discontinued operations includes the following components:}

	Year Ended December 31,
	2012		2011			2010
	(In Thousands)
Domestic	$	2,206		$	(9,167)		$	(92,557)
International		25,977			15,400			18,764
Total	$	28,183		$	6,233		$	(73,793)

^{A reconciliation of the beginning and ending amount of our gross unrecognized tax benefit liability is as follows:}

	Year Ended December 31,
	2012		2011			2010
	(In Thousands)
Gross unrecognized tax benefits at beginning of period	$	1,552		$	1,849		$	2,256
Additions related to acquisitions		742			-			-
Increases in tax positions for prior years		-			-			-
Decreases in tax positions for prior years		-			-			-
Increases in tax positions for current year		313			-			-
Settlements		-			-			-
Lapse in statute of limitations		(280)			(297)			(407)
Gross unrecognized tax benefits at end of period	$	2,327		$	1,552		$	1,849

^{We recognize interest and penalties related to uncertain tax positions in income tax expense. During the years ended December 31, 2012, 2011, and 2010, we recognized $0.3 million, $0.3 million, and $(0.2) million, respectively, of interest and penalties to the provision for income tax. As of December 31, 2012 and 2011, we had $2.3 million and $1.5 million, respectively, of accrued potential interest and penalties associated with these uncertain tax positions. The total amount of unrecognized tax benefits that would affect our effective tax rate if recognized is $2.6 million and $1.1 million as of December 31, 2012 and 2011, respectively. We do not expect a significant change to the unrecognized tax benefits during the next twelve months.}

^{We file tax returns in the U.S. and in various state, local, and non-U.S. jurisdictions. The following table summarizes the earliest tax years that remain subject to examination by taxing authorities in any major jurisdiction in which we operate:}

Jurisdiction	Earliest Open Tax Period
United States - Federal	2010
United States - State and Local	2002
Non-U.S. jurisdictions	2006

^{We use the liability method for reporting income taxes, under which current and deferred tax assets and liabilities are recorded in accordance with enacted tax laws and rates. Under this method, at the end of each period, the amounts of deferred tax assets and liabilities are determined using the tax rate expected to be in effect when the taxes are actually paid or recovered. We will establish a valuation allowance to reduce the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. While we have considered future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance, there can be no guarantee that we will be able to realize all of our deferred tax assets. Significant components of our deferred tax assets and liabilities as of December 31, 2012 and 2011, are as follows:}

	December 31,
	2012		2011
	(In Thousands)
Net operating losses		20,888			5,570
Foreign tax credits and alternative minimum
tax credits		6,976			5,003
Accruals	$	46,259		$	53,584
Goodwill		-			1,975
All other		2,130			17,489
Total deferred tax assets		76,253			83,621
Valuation allowance		(4,048)			(4,769)
Net deferred tax assets	$	72,205		$	78,852

	December 31,
	2012		2011
	(In Thousands)
Excess book over tax basis in
property, plant, and equipment	$	78,614		$	81,501
All other		7,506			6,225
Total deferred tax liability		86,120			87,726
Net deferred tax liability	$	13,915		$	8,874

^{The change in the valuation allowance during 2012 primarily relates to the utilization and expiration of certain state net operating losses that were previously fully valued. We believe the ability to generate sufficient taxable income may not allow us to realize all the tax benefits of the deferred tax assets within the allowable carryforward period. Therefore, an appropriate valuation allowance has been provided.}

^{At December 31, 2012, we had approximately $137.0 million of federal, foreign and state net operating loss carryforwards. In those countries and states in which net operating losses are subject to an expiration period, our loss carryforwards, if not utilized, will expire at various dates from 2013 through 2032. At December 31, 2012, we had $6.3 million of foreign tax credits available to offset future payment of federal income taxes. The foreign tax credits expire in varying amounts from 2020 through 2022.}