Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income from continuing operations

Income from continuing operations for the three years ended December 31, was as follows:

	2013		2012		2011
U.S. operations	$	54,702	$	47,220	$	40,282
Foreign operations	5,176		12,670		8,448
Total	$	59,878	$	59,890	$	48,730

Income tax expense (benefit)

Income tax expense (benefit) for the three years ended December 31, was as follows:

	2013			2012			2011
Current:
Federal	$	13,551		$	8,158		$	10,321
Foreign	3,567			4,633			2,277
State	1,136			1,089			1,450
	$	18,254		$	13,880		$	14,048
Deferred:
Federal	$	1,856		$	4,423		$	2,330
Foreign	(424		)	(126		)	(203		)
State	(39		)	129			(158		)
	$	1,393		$	4,426		$	1,969
Total:
Federal	$	15,407		$	12,581		$	12,651
Foreign	3,143			4,507			2,074
State	1,097			1,218			1,292
Total Income Tax Expense	$	19,647		$	18,306		$	16,017

Effective tax rate reconciliation

Our effective income tax rate varied from the U.S. federal statutory tax rate for the three years ended December 31, as follows:

	2013		2012		2011
Tax at statutory rate	35.0	%	35.0	%	35.0	%
Increases (decreases) in the tax rate from:
State and local taxes, net of federal benefit	1.7		1.0		2.0
Effect of foreign operations	(3.3	)	(6.2	)	0.5
Effect of changes in valuation allowances	3.7		2.3		—
Domestic production activities deduction	(1.6	)	(1.5	)	(1.6	)
Other, net	(2.7	)	—		(3.0	)
Effective income tax rate	32.8	%	30.6	%	32.9	%

Deferred tax assets and liabilities

Deferred tax assets and liabilities were comprised of the following as of December 31:

	2013			2012			2011
Deferred Tax Assets:
Inventories, principally due to additional costs inventoried for tax purposes and changes in inventory reserves	$	—		$	28		$	426
Employee wages and benefits, principally due to accruals for financial reporting purposes	14,831			18,608			20,910
Warranty reserves accrued for financial reporting purposes	2,803			2,641			2,625
Receivables, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals	1,593			1,540			1,464
Tax loss carryforwards	8,696			6,619			5,915
Tax credit carryforwards	4,078			6,720			8,554
Other	2,523			2,329			1,777
Gross Deferred Tax Assets	$	34,524		$	38,485		$	41,671
Less: valuation allowance	(7,243		)	(4,719		)	(3,229		)
Total Net Deferred Tax Assets	$	27,281		$	33,766		$	38,442
Deferred Tax Liabilities:
Inventories, principally due to changes in inventory reserves	$	306		$	—		$	—
Property, Plant and Equipment, principally due to differences in depreciation and related gains	7,446			7,945			9,167
Goodwill and Intangible Assets	6,253			6,818			7,093
Total Deferred Tax Liabilities	$	14,005		$	14,763		$	16,260
Net Deferred Tax Assets	$	13,276		$	19,003		$	22,182

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2013			2012
Balance at January 1,	$	3,480		$	3,424
Increases as a result of tax positions taken during a prior period	155			—
Increases as a result of tax positions taken during the current year	508			611
Reductions as a result of a lapse of the applicable statute of limitations	(295		)	(447		)
Decreases as a result of foreign currency fluctuations	(188		)	(108		)
Balance at December 31,	$	3,660		$	3,480