Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income from continuing operations

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

	2012		2011		2010
U.S. operations	$	47,220	$	40,282	$	26,297
Foreign operations	12,670		8,448		8,430
Total	$	59,890	$	48,730	$	34,727

Income tax expense (benefit)

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

	2012			2011			2010
Current:
Federal	$	8,158		$	10,321		$	6,756
Foreign	4,633			2,277			3,005
State	1,089			1,450			1,214
	$	13,880		$	14,048		$	10,975
Deferred:
Federal	$	4,423		$	2,330		$	(10,541	)
Foreign	(126		)	(203		)	(248		)
State	129			(158		)	(262		)
	$	4,426		$	1,969		$	(11,051	)
Total:
Federal	$	12,581		$	12,651		$	(3,785	)
Foreign	4,507			2,074			2,757
State	1,218			1,292			952
	$	18,306		$	16,017		$	(76	)

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, was as follows:

	2012		2011		2010
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	1.0		2.0		0.7
Effect of foreign operations	(6.2	)	0.5		0.5
International restructuring	—		—		(31.4	)
Effect of changes in valuation allowances	2.3		—		0.1
Domestic production activities deduction	(1.5	)	(1.6	)	(3.0	)
Other, net	—		(3.0	)	(2.1	)
Effective income tax rate	30.6	%	32.9	%	(0.2	)%

Deferred tax assets and liabilities

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

	2012			2011			2010
Deferred tax assets:
Inventories, principally due to additional costs inventoried for tax purposes and changes in inventory reserves	$	28		$	426		$	1,081
Employee wages and benefits, principally due to accruals for financial reporting purposes	18,608			20,910			17,948
Warranty reserves accrued for financial reporting purposes	2,641			2,625			2,175
Accounts receivable, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals	1,540			1,464			1,252
Tax loss carryforwards	6,619			5,915			12,725
Valuation allowance	(4,719		)	(3,229		)	(9,170		)
Tax credit carryforwards	6,720			8,554			10,119
Other	2,329			1,777			1,937
Total deferred tax assets	$	33,766		$	38,442		$	38,067
Deferred tax liabilities:
Property, Plant and Equipment, principally due to differences in depreciation and related gains	$	7,945		$	9,167		$	8,562
Goodwill and Intangible Assets	6,818			7,093			8,390
Total deferred tax liabilities	$	14,763		$	16,260		$	16,952
Net deferred tax assets	$	19,003		$	22,182		$	21,115

Reconciliation of unrecognized tax benefits

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

	2012			2011
Balance at January 1,	$	3,424		$	5,272
Decreases as a result of tax positions taken during a prior period	—			(765		)
Increases as a result of tax position taken during the current year	611			828
Decreases relating to settlements with taxing authorities	—			(193		)
Reductions as a result of a lapse of the applicable statute of limitations	(447		)	(1,551		)
Decreases as a result of foreign currency fluctuations	(108		)	(167		)
Balance at December 31,	$	3,480		$	3,424