Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

For financial reporting purposes, income from continuing operations before income taxes includes the following components:

	Year Ended December 31
	2014			2013		2012
Continuing operations
United States	$	57,651		$	53,315	$	47,400
Foreign		(4,045	)		4,927		6,297
Income from continuing operations before income taxes	$	53,606		$	58,242	$	53,697

Provision for income tax

The provision for income taxes consists of the following:

	Year Ended December 31
	2014			2013			2012
Continuing operations
Current provision:
Federal	$	18,713		$	16,239		$	9,637
State		2,992			2,785			2,096
Foreign		243			2,664			1,996
Total current provision		21,948			21,688			13,729
Deferred provision (benefit):
Federal		(1,627	)		(885	)		6,135
State		(222	)		(923	)		(768	)
Foreign		(699	)		(852	)		391
Total deferred provision (benefit)		(2,548	)		(2,660	)		5,758
Total provision (benefit):
Federal		17,086			15,354			15,772
State		2,770			1,862			1,328
Foreign		(456	)		1,812			2,387
Income tax provision on continuing operations		19,400			19,028			19,487
Income tax provision on discontinued operations		--			--			3,796
Total tax provision	$	19,400		$	19,028		$	23,283

Reconciliation of provision for income taxes at the statutory federal income tax rate

A reconciliation of the provision for income taxes at the statutory federal income tax rate to the amount provided is as follows:

	Year Ended December 31
	2014			2013			2012
Continuing operations
Tax at the statutory federal income tax rate	$	18,762		$	20,385		$	18,794
Qualified production activity deduction		(1,360	)		(1,395	)		(958	)
State income tax, net of federal income tax		1,727			1,105			758
Other permanent differences		840			464			360
Research and development tax credits		(1,323	)		(2,054	)		(419	)
Change in valuation allowance		1,675			810			1,034
Other items		(921	)		(287	)		(82	)
Income tax provision on continued operations		19,400			19,028			19,487
Income tax provision on discontinued operations		--			--			3,796
Total tax provision	$	19,400		$	19,028		$	23,283

Significant components of company's 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:
Inventory reserves	$	6,539		$	6,340
Warranty reserves		2,988			3,558
Bad debt reserves		598			636
State tax loss carryforwards		2,377			2,100
Accrued vacation		2,060			1,805
SERP		1,231			1,245
Deferred compensation		1,255			1,226
Restricted stock units		2,256			2,601
Foreign exchange gains/losses		3,111			2,345
Pension and post-employment benefits		2,197			1,498
Foreign deferred tax assets		3,311			3,642
Foreign net operating losses		3,168			1,561
Other		3,267			2,708
Valuation allowances		(6,029	)		(4,354	)
Total deferred tax assets		28,329			26,911
Deferred tax liabilities:
Property and equipment		19,394			19,711
Amortization		1,087			1,200
Goodwill		2,014			2,012
Pension		1,313			1,132
Foreign tax rate differential		2,236			3,681
Foreign deferred tax liabilities		3,820			1,227
Total deferred tax liabilities		29,864			28,963
Total net deferred liabilities	$	(1,535	)	$	(2,052	)

Reconciliation of unrecognized tax benefit

A reconciliation of the beginning and ending unrecognized tax benefits excluding interest and penalties is as follows:

	December 31
	2014		2013			2012
Balance, beginning of year	$	1,933	$	2,095		$	1,682
Additions for tax positions related to the current year		127		102			396
Additions for tax positions related to prior years		525		128			90
Reductions due to lapse of statutes of limitations		--		(149	)		(73	)
Decreases related to settlements with tax authorities		--		(243	)		--
Balance, end of year	$	2,585	$	1,933		$	2,095

- 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.

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