Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Income before Income Tax, Domestic and Foreign

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



	December 31,
(in thousands)	2015		2014		2013
Income before income taxes:
Domestic	$	52,313	$	43,345	$	35,146
Foreign	14,554		17,260		16,242
	$	66,867	$	60,605	$	51,388

Schedule of Components of Income Tax Expense (Benefit)

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



	December 31,
(in thousands)	2015			2014			2013
Current:
Domestic	$	13,293		$	13,495		$	10,605
Foreign	4,614			3,382			3,200
State	2,947			2,685			2,366
	20,854			19,562			16,171
Deferred:
Domestic	3,481			(600		)	(1,074		)
Foreign	(718		)	540			249
State	41			(48		)	(52		)
	2,804			(108		)	(877		)
Total income taxes	$	23,658		$	19,454		$	15,294

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 before income taxes consist of the following:



	December 31,
(in thousands)	2015			2014			2013
Domestic statutory rate at 35%	$	23,403		$	21,212		$	17,985
Increase (reduction) from:
Jurisdictional rate differences	(2,192		)	(2,119		)	(1,959		)
Valuation allowance	797			353			(114		)
Stock based compensation	257			199			136
U.S. state taxes	1,942			1,649			1,496
Domestic production deduction	(518		)	(1,321		)	(1,162		)
R&D credit	(475		)	(614		)	(856		)
Other, net	444			95			(232		)
Provision for income taxes	$	23,658		$	19,454		$	15,294
Effective tax rate	35		%	32		%	30		%

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)	2015			2014
Deferred income tax assets:
Inventory basis difference	$	2,241		$	1,051
Accounts receivable reserve	529			394
Depreciation	110			—
Stock based compensation	968			1,284
Pension liability	2,481			3,018
Employee benefit accrual	2,038			1,448
Product liability and warranty reserves	1,517			1,480
Expenses not currently deductible for tax purposes	60			410
Foreign net operating loss	2,726			1,379
State net operating loss	49			10
Other	194			—

Total deferred income tax assets	$	12,913		$	10,474
Less: Valuation allowance	(1,651		)	(1,064		)

Net deferred income tax assets	$	11,262		$	9,410

Deferred income tax liabilities:
Inventory basis differences	$	(310	)	$	—
Depreciation	(4,624		)	(2,786		)
Intangible assets	(7,934		)	(2,144		)
Deferred revenue	—			38
Expenses not currently deductible for tax purposes	(642		)	(356		)

Total deferred income tax liabilities	$	(13,510	)	$	(5,248	)

Net deferred income tax liabilities and assets	$	(2,248	)	$	4,162

Schedule of Unrecognized Tax Benefits Roll Forward



	December 31,
	2015			2014
Balance as of beginning of year	$	388,000		$	146,000
Additions for tax positions related to the current year	63,000			63,000
Additions for tax positions related to prior years	—			262,000
Reduction due to lapse of statute of limitations	(150,000		)	(83,000		)
Balance as of end of year	$	301,000		$	388,000