Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Earnings from continuing operations before income taxes

Earnings from continuing operations before income taxesfor 2011, 2010 and 2009 consisted of the following:

(Thousands of dollars)	2011		2010		2009
United States	$	76,025	$	50,278	$	17,880
Foreign		29,444		17,167		15,132
Total earnings before income taxes	$	105,469	$	67,445	$	33,012

Components of the income tax provision

The income tax provision for 2011, 2010 and 2009 consisted of the following:

(Thousands of dollars)	2011			2010			2009
Current:
U.S. federal and state income taxes	$	21,466		$	15,815		$	7,286
Foreign		8,465			6,663			4,793
Total current		29,931			22,478			12,079
Deferred:
U.S. federal and state income taxes		9,820			2,819			(1,186	)
Foreign		(253	)		(1,383	)		(360	)
Total deferred		9,567			1,436			(1,546	)
Total	$	39,498		$	23,914		$	10,533

Reconciliation of the income tax provision from statutory to GAAP

A reconciliation of the income tax provision as computed at the statutory U.S. income tax rate and the income tax provision presented in the consolidated financial statements is as follows:

(Thousands of dollars)	2011			2010			2009
Tax provision computed at statutory rate	$	36,914		$	23,606		$	11,554
Tax effect of:
Expenses for which no benefit was realized		1,569			279			335
Change in effective state tax rate		(6	)		13			(44	)
Tax credit		(817	)		(1,065	)		(962	)
State taxes net of federal benefit		1,779			1,813			504
Benefit of manufacturing deduction		(1,492	)		(1,127	)		(481	)
Acquisition costs		1,919
Other, net		(368	)		395			(373	)
Total provision for taxes	$	39,498		$	23,914		$	10,533

Primary components of deferred tax assets and liabilities and the related valuation allowances

The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows:

(Thousands of dollars)	2011			2010
Deferred income tax assets:
Pension costs	$	36,430		$	10,138
Payroll and benefits		1,365			1,313
Accrued warranty expenses		1,425			1,078
Postretirement benefits		8,143			6,356
Accrued liabilities		591			2,526
Other, net		1,680			758
Total deferred income tax assets		49,634			22,169
Less valuation allowance		(1,117	)		(389	)
Total deferred income tax assets		48,517			21,780
Noncurrent deferred income tax liabilities:
Prepaid expenses		(993	)		(644	)
Depreciation		(34,143	)		(21,004	)
Inventories		(1,758	)		(1,486	)
Intangible assets		(8,784	)		(2,099	)
Other, net		(5,585	)		(4,877	)
Total noncurrent deferred income tax liabilities, net		(51,263	)		(30,110	)
Total net deferred tax liability	$	(16,178	)	$	(8,330	)
Current deferred tax asset
Continuing operations	$	1,140		$	3,554
Discontinued operations		-			69
Total current deferred tax asset		1,140			3,623
Non-current deferred tax liability
Continuing operations		(3,886	)		(11,953	)
Total non-current deferred tax liability		(3,886	)		(11,953	)
Total net deferred tax liability	$	(2,746	)	$	(8,330	)

Reconciliation of unrecognized tax benefits

K 57

At December 31, 2011, 2010 and 2009 there are $2.1 million, $1.8 million and $1.5 million, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate.  A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(Thousands of dollars)	2011			2010			2009
Balance at January 1,	$	1,838		$	1,509		$	1,368
Gross increases- current year tax positions		791			372			593
Gross increases- tax positions from prior periods		115			233			93
Gross decreases- tax positions from prior periods		(657	)		(262	)		(372	)
Settlements		(27	)		(14	)		(173	)
Balance at December 31,	$	2,060		$	1,838		$	1,509