Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income from continuing operations

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

	2014		2013		2012
U.S. operations	$	52,315	$	54,702	$	47,220
Foreign operations	17,223		5,176		12,670
Total	$	69,538	$	59,878	$	59,890

Income tax expense (benefit)

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

	2014			2013			2012
Current:
Federal	$	11,903		$	13,551		$	8,158
Foreign	3,373			3,567			4,633
State	1,543			1,136			1,089
	$	16,819		$	18,254		$	13,880
Deferred:
Federal	$	2,650		$	1,856		$	4,423
Foreign	(524		)	(424		)	(126		)
State	(58		)	(39		)	129
	$	2,068		$	1,393		$	4,426
Total:
Federal	$	14,553		$	15,407		$	12,581
Foreign	2,849			3,143			4,507
State	1,485			1,097			1,218
Total Income Tax Expense	$	18,887		$	19,647		$	18,306

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:

	2014		2013		2012
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		1.7		1.0
Effect of foreign operations	(4.6	)	(3.3	)	(6.2	)
Effect of changes in valuation allowances	(0.9	)	3.7		2.3
Domestic production activities deduction	(1.6	)	(1.6	)	(1.5	)
Other, net	(2.4	)	(2.7	)	—
Effective income tax rate	27.2	%	32.8	%	30.6	%

Deferred tax assets and liabilities

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

	2014			2013
Deferred Tax Assets:
Employee wages and benefits, principally due to accruals for financial reporting purposes	16,696			14,831
Warranty reserves accrued for financial reporting purposes	2,895			2,803
Receivables, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals	1,549			1,593
Tax loss carryforwards	6,845			8,696
Tax credit carryforwards	1,043			4,078
Other	1,246			2,523
Gross Deferred Tax Assets	$	30,274		$	34,524
Less: valuation allowance	(5,699		)	(7,243		)
Total Net Deferred Tax Assets	$	24,575		$	27,281
Deferred Tax Liabilities:
Inventories, principally due to changes in inventory reserves	$	305		$	306
Property, Plant and Equipment, principally due to differences in depreciation and related gains	6,745			7,446
Goodwill and Intangible Assets	5,611			6,253
Total Deferred Tax Liabilities	$	12,661		$	14,005
Net Deferred Tax Assets	$	11,914		$	13,276

Reconciliation of unrecognized tax benefits

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

	2014			2013
Balance at January 1,	$	3,660		$	3,480
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	610			508
Decreases relating to settlement with tax authorities	(6		)	—
Reductions as a result of a lapse of the applicable statute of limitations	(1,033		)	(295		)
Decreases as a result of foreign currency fluctuations	(202		)	(188		)
Balance at December 31,	$	3,029		$	3,660