Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consists of the following:



	For the Year Ended December 31,
	2014		2013		2012
United States	$	87,505	$	67,355	$	79,812
Foreign	31,659		51,303		23,294
Income before income taxes	$	119,164	$	118,658	$	103,106

Schedule of Components of Income Tax Expense (Benefit)

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



	Year Ended December 31,
	2014			2013			2012
Current:
Federal	$	22,608		$	19,421		$	28,076
State and local	1,406			1,618			1,768
Foreign	12,326			11,864			5,456
Total current	36,340			32,903			35,300
Deferred:
Federal	3,135			21			(3,477		)
State and local	180			(364		)	(684		)
Foreign	(3,563		)	(1,264		)	(357		)
Total deferred	(248		)	(1,607		)	(4,518		)
Total provision	$	36,092		$	31,296		$	30,782

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows:



	Year Ended December 31,
	2014			2013			2012
Income tax expense at U.S. federal statutory rate	$	41,708		$	41,530		$	36,087
State income taxes, net of federal tax benefit	841			757			711
Foreign income, net of credit on foreign taxes	(245		)	501			48
Effective tax rate differential of earnings outside of U.S.	(5,411		)	(8,257		)	(4,983		)
Foreign investment tax credit	—			—			(406		)
Research & experimentation credits	(1,150		)	(2,105		)	—
Non-deductible items	1,947			865			2,885
Change in uncertain tax positions	(52		)	(347		)	(394		)
Domestic production activities deduction	(2,093		)	(2,237		)	(2,490		)
Other items	547			589			(676		)
Income tax expense	$	36,092		$	31,296		$	30,782

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	December 31,
	2014			2013
Deferred tax assets:
Accruals and reserves	$	23,197		$	25,478
Pensions	6,161			2,536
Inventory	5,176			4,350
Share-based compensation	7,235			6,107
Tax credit carryforwards	553			—
Foreign net operating loss carryforwards	1,154			594
State net operating loss carryforward	1,331			1,610
Other – net	3,230			844
Total deferred tax assets before valuation allowance	48,037			41,519
Valuation allowance	(1,982		)	(1,250		)
Total deferred tax assets, net of valuation allowance	$	46,055		$	40,269
Deferred tax liabilities:
Property, plant and equipment	$	24,063		$	17,248
Intangibles	47,771			53,314
Convertible notes	2,118			2,623
Total deferred tax liabilities	$	73,952		$	73,185
Net deferred tax liabilities	$	27,897		$	32,916
The net deferred tax liability is classified as follows:
Deferred income taxes	$	(17,248	)	$	(14,675	)
Other assets	(1,743		)	(125		)
Long-term deferred tax liabilities	46,888			47,716
Net deferred tax liabilities	$	27,897		$	32,916

Summary of Income Tax Contingencies [Table Text Block]

Unrecognized Income Tax Benefits

The reconciliation of beginning to ending unrecognized tax benefits is as follows:



	Year Ended December 31,
	2014			2013			2012
Unrecognized tax benefits at beginning of the year	$	941		$	3,339		$	2,440
Additions for tax positions of prior years	358			299			1,921
Reductions for tax positions of prior years	(329		)	(1,921		)	—
Reductions for settlements	—			—			(905		)
Lapse of statutes of limitation	(22		)	(776		)	(117		)
Unrecognized tax benefits at end of the year	$	948		$	941		$	3,339

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details