Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income before Income Tax, Domestic and Foreign

The jurisdictional components of income before taxes consist of the following:



	December 31,
(in thousands)	2013		2012		2011
Income before income taxes:
Domestic	$	35,146	$	29,390	$	28,109
Foreign	16,242		14,056		20,020
	$	51,388	$	43,446	$	48,129

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) consist of the following:



	December 31,
(in thousands)	2013			2012			2011
Current:
Domestic	$	10,605		$	9,273		$	7,771
Foreign	3,200			4,919			5,682
State	2,366			756			1,139
	16,171			14,948			14,592
Deferred:
Domestic	(1,074		)	(192		)	397
Foreign	249			(363		)	331
State	(52		)	150			122
	(877		)	(405		)	850
Total income taxes	$	15,294		$	14,543		$	15,442

Schedule of Effective Income Tax Rate Reconciliation

The difference between income tax expense (benefit) for financial statement purposes and the amount of income tax expense computed by applying the domestic statutory income tax rate of 35% to income loss before income taxes consist of the following:



	December 31,
(in thousands)	2013			2012			2011
Domestic statutory rate at 35% (34% for 2011 and 2010)	$	17,985		$	15,206		$	16,364
Increase (reduction) from:
Jurisdictional rate differences	(1,959		)	(1,477		)	(1,315		)
Goodwill impairment	—			157			633
Valuation allowance	(114		)	825			—
Stock based compensation	136			214			161
U.S. state taxes	1,496			589			740
Domestic Production Deduction	(1,162		)	(948		)	(796		)
R&E Credit Reserve	(856		)	(130		)	(252		)
Other, net	(232		)	107			(93		)
Provision for income taxes	$	15,294		$	14,543		$	15,442
Effective tax rate	30		%	33		%	32		%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred income tax assets and liabilities consist of the following:



	December 31,
(in thousands)	2013			2012
Deferred income tax assets:
Inventory basis difference	$	1,576		$	1,475
Accounts receivable reserve	201			299
Stock based compensation	904			614
Pension liability	1,604			3,595
Employee benefit accrual	601			459
Product liability and warranty reserves	1,417			1,120
Expenses not deductible for tax purposes	1,064			487
Foreign net operating loss	2,954			1,608
State net operating loss	76			82
Other	34			3

Total deferred income tax assets	$	10,431		$	9,742
Less: Valuation allowance	(711		)	(825		)

Net deferred income tax assets	$	9,720		$	8,917

Deferred income tax liabilities:
Inventory basis differences	$	—		$	(253	)
Depreciation	(3,068		)	(2,867		)
Intangible assets	(1,277		)	(1,011		)
Deferred revenue	(66		)	(135		)
Expenses not deductible for tax purposes	(461		)	(777		)

Total deferred income tax liabilities	$	(4,872	)	$	(5,043	)

Net deferred income tax assets	$	4,848		$	3,874

Schedule of Unrecognized Tax Benefits Roll Forward



	December 31,
	2013			2012
Balance as of beginning of year	$	257,000		$	235,000
Additions for tax positions related to the current year	56,000			—
Additions for tax positions related to prior years	27,000			22,000
Reduction due to lapse of statute of limitations	(194,000		)	—
Balance as of end of year	$	146,000		$	257,000