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<div> <b><b><b><b><b><b><b><b><b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>Q.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>OTHER</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company has entered into a royalty agreement with another absorbent products company. Under the agreement, it receives royalties for its trademarks, technology, know-how, and the use of equipment that embodies that technology and know-how. It also purchases and sells to the other company the requisite materials for the use of the technology. During 2011, incident to that agreement, the Company recognized material sales of $4,874,000 (classified as Net Sales) and royalty income (classified as Other Income) of $479,000. As of December 31, 2011, the assets that pertain to this agreement are as follows: Net Accounts Receivable of $3,911,000; Other Current Assets: $1,500,000; and Net Property, Plant, and Equipment: $6,771,000.</p> </div>
<div> <b><b> </b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: bold 10pt Arial,sans-serif;"><font style="font-family: Times New Roman,serif;" class="_mt">C.</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font-family: Times New Roman,serif;" class="_mt"><b>ACCRUED LIABILITIES:</b></font></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">At December 31, 2011, accrued liabilities consisted of payroll $6,472,000, product liability $6,052,000, environmental $2,250,000, and other $1,261,000. At December 31, 2010, accrued liabilities consisted of payroll $6,536,000, product liability $6,448,000, environmental $2,535,000, and other $1,053,000. <b> </b></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company is self-insured for health care costs, although it does carry stop loss and other insurance to cover health care claims once they reach a specified threshold. The Company is also subject to product liability claims in the normal course of business. It is partly self-insured for product liability claims, and therefore records an accrual for known claims and incurred but unreported claims in the Company's consolidated financial statements. The Company utilizes historical trends and other analysis to assist in determining the appropriate accrual. An increase in the number or magnitude of claims could have a material impact on the Company's financial condition and results of operations. The Company's policy is to accrue for legal fees expected to be incurred in connection with loss contingencies. See Note K for a discussion of environmental remediation liabilities.</p> </div>
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<div> <b><b><b><b><b><b><b><b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b></b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>P.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>BUSINESS ACQUISITION</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">On November 1, 2011, the Company purchased the assets of ALS Technologies, Inc., a small Arkansas manufacturer of less than lethal ammunition. Products include smoke and tear gas grenades, specialty impact munitions, diversionary devices and stun munitions, support accessories like launchers and gas masks, as well as training for the use of its products. Sales for 2011, including the portion of the year prior to the purchase, were $8,046,000. The products are sold primarily to law enforcement, corrections, and military. The acquisition was immaterial to the Company's consolidated financial statements. The purchase price allocation included in the Company's financial statements is preliminary and will be finalized in 2012 upon the completion of a business valuation.</p> </div>
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<div> <b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>I.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>COMMITMENTS AND CONTINGENCIES</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company is involved in routine litigation incidental to its business. Management believes the ultimate outcome of this litigation will not have a material effect on the Company's consolidated financial position, liquidity, or results of operations.</p> </div>
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<div> <b><b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: bold 10pt Arial,sans-serif;"><font style="font-family: Times New Roman,serif;" class="_mt">J.</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font-family: Times New Roman,serif;" class="_mt"><b>CONCENTRATIONS:</b></font></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">In the Housewares/Small Appliance segment, one customer accounted for 11% of consolidated net sales for the years ended December 31, 2010 and 2009. In the Absorbent Products segment, one customer accounted for 12%, 11% and 12% of consolidated net sales for the years ended December 31, 2011, 2010, and 2009, respectively.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company sources most of its housewares/small appliances from vendors in the Orient and as a result risks deliveries from the Orient being disrupted by labor or supply problems at the vendors, or transportation delays. Should such problems or delays materialize, products might not be available in sufficient quantities during the prime selling period. The Company has made and will continue to make every reasonable effort to prevent these problems; however, there is no assurance that its efforts will be totally effective. In addition, the Company's manufacturing contracts with its foreign suppliers contain provisions to share the impact of fluctuations in the exchange rate between the U.S. dollar and the Hong Kong dollar above and below a fixed range contained in the contracts. All transactions with the foreign suppliers were within the exchange rate range specified in the contracts during 2011, 2010, and 2009. There is no similar provision applicable to the Chinese Yuan<b>,</b> which until 2005 had been tied to the U.S. dollar, but which has since been allowed to float and has appreciated in value. To date, any material impact from the change in the value of the currency has been to the cost of products secured via purchase orders issued subsequent to the currency value change. Foreign transaction gains/losses are immaterial to the financial statements for all years presented.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company's Defense segment manufactures products primarily for the U.S. Department of Defense (DOD) and DOD prime contractors. As a consequence, this segment's future business essentially depends on the product needs and governmental funding of the DOD. During 2011, 2010, and 2009, almost all of the work performed by this segment directly or indirectly for the DOD was performed on a fixed-price basis. Under fixed-price contracts, the price paid to the contractor is awarded based on competition at the outset of the contract and therefore, with the exception of limited escalation provisions on specific materials, is generally not subject to any adjustments reflecting the actual costs incurred by the contractor. In addition, with the award of the 40mm systems contract, key components and services are provided by third party subcontractors, several of which the segment is required to work with by government edict. Under the contract, the segment is responsible for the performance of those subcontractors, many of which it does not control. The Defense segment's contracts and subcontracts contain the customary provision permitting termination at any time for the convenience of the government, with payment for any work completed, associated profit, and inventory/work in process at the time of termination. Materials used in the Defense segment are available from multiple sources. As of December 31, 2011, 208<font style="color: black;" class="_mt"> employees of Amron, or 21% of the Company's total workforce, are members of the United Steel Workers union. The contract between Amron and the union is effective through February 28, 2015. </font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">Raw materials for the Absorbent Products segment are commodities that are typically available from multiple sources.</p> </div>
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<div> <p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>F.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>STOCK-BASED COMPENSATION: </b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company, from time to time, enters into separate non-vested share-based payment arrangements with employees and executive officers under the Incentive Compensation Plan approved by stockholders on May 18, 2010, which authorized 50,000 shares to be available for grants. The Compensation Committee of the Company's Board of Directors approves stock-based compensation awards for all employees and executive officers of the Company. The Company grants restricted stock that is subject to continued employment and vesting conditions, but has dividend and voting rights, and uses the fair-market value of the Company's common stock on the grant date to measure the fair value of the awards. The fair value of restricted stock is recognized as expense ratably over the requisite serviced period, net of estimated forfeitures. The Company does not capitalize stock-based compensation costs.</p>
<p style="background-color: white; margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">During 2011 and 2010, the Company granted 3,402 and 3,328 shares of restricted stock, respectively, to 15 employees and executive officers of the Company. The restricted stock vests on specified dates in 2015 through 2017, subject to the recipients' continued employment or service through each applicable vesting date.</p>
<p style="background-color: white; margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="background-color: white; margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company recognized pre-tax compensation expense in the consolidated statements of earnings related to stock-based compensation of $29,000, $3,000, and $0 in 2011, 2010, and 2009, respectively. Certain accrued bonuses as of December 31, 2009 were converted to restricted stock awards during 2010. The fair value of the awards on the 2010 grant date was $238,000, which approximates the amount that was included in selling and general expense in the consolidated statement of earnings for 2009 when the bonuses were accrued.</p>
<p style="background-color: white; margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">As of December 31, 2011, there was approximately $412,000 of unrecognized compensation cost related to the restricted stock awards that is expected to be recognized over a period of 5.2 years. There were no shares of restricted stock that vested during 2011, 2010, or 2009.</p>
<p style="background-color: white; margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The following table summarizes the activity for non-vested restricted stock:</p>
<p style="background-color: white; margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 95%; border-collapse: collapse; margin-left: 0.25in; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="6"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">2011</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="6"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">2010</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">Shares</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">Weighted <br />Average Fair <br />Value at <br />Grant Date</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">Shares</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">Weighted <br />Average Fair <br />Value at<br />Grant Date</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="width: 40%; font-family: fault),serif;">Non-vested at beginning of period</td>
<td style="width: 3%; font-family: fault),serif;"> </td>
<td style="width: 1%; font-family: fault),serif;"> </td>
<td style="text-align: right; width: 10%; font-family: fault),serif;">3,328</td>
<td style="width: 1%; font-family: fault),serif;"> </td>
<td style="width: 3%; font-family: fault),serif;"> </td>
<td style="width: 1%; font-family: fault),serif;">$</td>
<td style="text-align: right; width: 10%; font-family: fault),serif;">109.38</td>
<td style="width: 1%; font-family: fault),serif;"> </td>
<td style="width: 3%; font-family: fault),serif;"> </td>
<td style="width: 1%; font-family: fault),serif;"> </td>
<td style="text-align: right; width: 10%; font-family: fault),serif;">0</td>
<td style="width: 1%; font-family: fault),serif;"> </td>
<td style="width: 3%; font-family: fault),serif;"> </td>
<td style="width: 1%; font-family: fault),serif;">$</td>
<td style="text-align: right; width: 10%; font-family: fault),serif;">0.00</td>
<td style="width: 1%; font-family: fault),serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">Granted</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">3,402</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">93.32</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">3,328</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">109.38</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;">Non-vested at end of period</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">6,730</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">101.26</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">3,328</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">109.38</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td></tr></table> </div>
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38008000
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55889000
56665000
56665000
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9.26
6.98
9.13
9.26
6.98
<div> <b><b><b><b> </b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>E.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>NET EARNINGS PER SHARE:</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">Earnings per share was calculated using the two-class method, which is an earnings allocation formula that determines earnings per share for common shareholders and each participating security according to dividends declared and participation rights in undistributed earnings.</p> </div>
<div> <p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>K.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>ENVIRONMENTAL</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">In May 1986, the Company's Eau Claire, Wisconsin site was placed on the United States Environmental Protection Agency's National Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 because of hazardous waste deposited on the property. As of December 31, 1998, all remediation projects required at the Company's Eau Claire, Wisconsin, site had been installed, were fully operational, and restoration activities had been completed. In addition, the Company is a member of a group of companies that may have disposed of waste into an Eau Claire area landfill in the 1960s and 1970s. After the landfill was closed, elevated volatile organic compounds were discovered in the groundwater. Remediation plans were established, and the costs associated with remediation and monitoring at the landfill are split evenly between the group and the City of Eau Claire. As of December 31, 2011, there does not appear to be exposure related to this site that would have a material impact on the operations or financial condition of the Company.</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">Based on factors known as of December 31, 2011, it is believed that the Company's existing environmental accrued liability reserve will be adequate to satisfy on-going remediation operations and monitoring activities both on- and off-site; however, should environmental agencies require additional studies, extended monitoring, or remediation projects, it is possible that the existing accrual could be inadequate. Management believes that in the absence of any unforeseen future developments, known environmental matters will not have any material effect on the results of operations or financial condition of the Company. The Company's environmental accrued liability on an undiscounted basis was $2,250,000 and $2,535,000 as of December 31, 2011 and 2010, respectively, and is included in accrued liabilities on the balance sheet.</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"><i> </i></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"><i> </i></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">Expected future payments for environmental matters are as follows:</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 50%; border-collapse: collapse; font-size: 10pt;" cellspacing="0" cellpadding="0" align="center">
<tr style="vertical-align: bottom;"><td style="font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="font: bold 8pt Times New Roman, Times, Serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">(In<br />thousands)</font></td>
<td style="font: bold 8pt Times New Roman, Times, Serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">Years Ending December 31:</font></td>
<td style="font-family: Times New Roman, Times, Serif;"> </td>
<td style="font-family: Times New Roman, Times, Serif;"> </td>
<td style="text-align: right; font-family: Times New Roman, Times, Serif; border-top: windowtext 1pt solid;"> </td>
<td style="font-family: Times New Roman, Times, Serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="width: 85%; font-family: Times New Roman,serif;">2012</td>
<td style="width: 3%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif;">390</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">2013</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">265</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">2014</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">249</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">2015</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">234</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">2016</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">218</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">Thereafter</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">894</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">2,250</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td></tr></table> </div>
11485000
18468000
110092000
113574000
93759000
94397000
99355000
75025000
<div> <b><b><b><b><b><b><b> </b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>H.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>INCOME TAXES:</b></font></b></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"><b> </b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The following table summarizes the provision for income taxes:</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 95%; border-collapse: collapse; margin-left: 0.25in; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="10">For Years Ended December 31 (in thousands)</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">2011</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">2010</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">2009</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Current:</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white;"><td style="padding-left: 9pt; width: 46%; font-family: Times New Roman,serif; vertical-align: bottom;">Federal</td>
<td style="width: 5%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; width: 11%; font-family: Times New Roman,serif; vertical-align: top;">17,596</td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 5%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; width: 11%; font-family: Times New Roman,serif; vertical-align: top;">30,317</td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 5%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; width: 11%; font-family: Times New Roman,serif; vertical-align: top;">29,267</td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr>
<tr style="background-color: #d6f3e8;"><td style="padding-bottom: 1pt; padding-left: 9pt; font-family: Times New Roman,serif; vertical-align: bottom;">State</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;"> 4,365</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">5,905</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;"> 2,383</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr>
<tr style="background-color: white;"><td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">21,961</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">36,222</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">31,650</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr>
<tr style="background-color: #d6f3e8;"><td style="font-family: Times New Roman,serif; vertical-align: bottom;">Deferred:</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="vertical-align: top;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="vertical-align: top;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="vertical-align: top;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr>
<tr style="background-color: white;"><td style="padding-left: 9pt; font-family: Times New Roman,serif; vertical-align: bottom;">Federal</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">4,972</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(996</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">)</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(34</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">)</td></tr>
<tr style="background-color: #d6f3e8;"><td style="padding-bottom: 1pt; padding-left: 9pt; font-family: Times New Roman,serif; vertical-align: bottom;">State</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;"> 124</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">598</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;"> 205</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr>
<tr style="background-color: white;"><td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">5,096</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(398</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;">)</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">171</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr>
<tr style="background-color: #d6f3e8;"><td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif; vertical-align: bottom;">Total tax provision</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif; vertical-align: top;">27,057</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif; vertical-align: top;"> 35,824</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif; vertical-align: top;"> 31,821</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr></table>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The effective rate of the provision for income taxes as shown in the consolidated statements of earnings differs from the applicable statutory federal income tax rate for the following reasons:</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 95%; border-collapse: collapse; margin-left: 0.25in; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="10">Percent of Pre-tax Income</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">2011</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">2010</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">2009</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8;"><td style="width: 49%; font-family: Times New Roman,serif; vertical-align: bottom;">Statutory rate</td>
<td style="width: 4%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif; vertical-align: top;">35.0</td>
<td style="width: 2%; font-family: Times New Roman,serif; vertical-align: bottom;">%</td>
<td style="width: 4%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif; vertical-align: top;">35.0</td>
<td style="width: 2%; font-family: Times New Roman,serif; vertical-align: bottom;">%</td>
<td style="width: 4%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif; vertical-align: top;">35.0</td>
<td style="width: 2%; font-family: Times New Roman,serif; vertical-align: bottom;">%</td></tr>
<tr style="background-color: white;"><td style="font-family: Times New Roman,serif; vertical-align: bottom;">State tax, net of federal benefit</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">3.9</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">4.6</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">1.8</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%</td></tr>
<tr style="background-color: #d6f3e8;"><td style="font-family: Times New Roman,serif; vertical-align: bottom;">Tax exempt interest and dividends</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(0.5</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%)</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(0.7</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%)</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(1.1</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%)</td></tr>
<tr style="background-color: white;"><td style="font-family: Times New Roman,serif; vertical-align: bottom;">Other</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(2.3</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%)</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(2.8</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%)</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(2.0</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%)</td></tr>
<tr style="background-color: #d6f3e8;"><td style="font-family: Times New Roman,serif; vertical-align: bottom;">Effective rate</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif; vertical-align: bottom; border-top: black 1pt solid;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif; vertical-align: top; border-top: black 1pt solid;">36.1</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif; vertical-align: bottom; border-top: black 1pt solid;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif; vertical-align: top; border-top: black 1pt solid;">36.1</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif; vertical-align: bottom; border-top: black 1pt solid;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif; vertical-align: top; border-top: black 1pt solid;">33.7</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">%</td></tr></table>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">Deferred tax assets and liabilities are recorded based on the differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. The tax effects of the cumulative temporary differences resulting in deferred tax assets and liabilities are as follows at December 31:</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 95%; border-collapse: collapse; margin-left: 0.25in; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="6"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">(In thousands)</font></td>
<td style="font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">2011</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">2010</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman, Times, Serif; font-weight: bold;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">Deferred tax assets</font></td>
<td style="font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="text-align: right; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="text-align: right; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 0.25in; width: 70%; font-family: Times New Roman,serif;">Insurance (primarily product liability)</td>
<td style="width: 3%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif;">2,847</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 3%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif;">2,713</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-left: 0.25in; font-family: Times New Roman,serif;">Vacation</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">951</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">885</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 0.25in; font-family: Times New Roman,serif;">Environmental</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">894</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">993</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-left: 0.25in; font-family: Times New Roman,serif;">Goodwill</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">859</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1,321</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 1pt; padding-left: 0.25in; font-family: Times New Roman,serif;">Other</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">589</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">356</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;">Total deferred tax assets</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">6,140</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">6,268</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif; font-weight: bold;">Deferred tax liabilities</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 0.25in; font-family: Times New Roman,serif;">Depreciation</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">9,366</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">4,398</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-bottom: 1pt; padding-left: 0.25in; font-family: Times New Roman,serif;">Other</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">39</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">69</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;">Net deferred tax liabilities</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">9,405</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">4,467</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif; font-weight: bold;">Net deferred tax assets (liabilities)</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">(3,265</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;">)</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">1,801</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td></tr></table>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company establishes tax reserves in accordance with FASB ASC 740, <i>Income Taxes</i>. As of December 31, 2011, the carrying amount of the Company's gross unrecognized tax benefits was $248,000 which, if recognized, would affect the Company's effective income tax rate.</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The following is a reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2011 and 2010:</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 95%; border-collapse: collapse; margin-left: 0.25in; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="6"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">(In thousands)</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">2011</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman, Times, Serif;" colspan="2"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">2010</font></td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="width: 70%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">Balance at January 1</font></td>
<td style="width: 3%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">$</font></td>
<td style="text-align: right; width: 10%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">418</font></td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="width: 3%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">$</font></td>
<td style="text-align: right; width: 10%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">1,447</font></td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif;"><font style="font-family: Times New Roman, Times, Serif;" class="_mt"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Additions for tax positions taken related to the current year</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">87</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">75</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Additions for tax positions taken related to prior years</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">12</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">0</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Reductions for tax positions taken related to prior years</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">0</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">(111</td>
<td style="font-family: Times New Roman,serif;">)</td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">Settlements</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">(269</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">)</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">(993</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">)</td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;">Balance at December 31</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">248</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;">418</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td></tr></table>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">It is the Company's practice to include interest and penalties in tax expense. During the years ended December 31, 2011 and 2010, the Company accrued approximately $11,000 and $37,000 in interest, respectively.</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company is subject to U.S. federal income tax as well as income taxes of multiple states. The Company is currently under audit by the Internal Revenue Service for the tax years 2009 and 2010. For all states in which it does business, the Company is subject to state audit statutes.</p> </div>
30663000
36479000
26686000
31821000
35824000
27057000
7090000
6138000
-711000
16765000
-1244000
-17973000
2074000
-432000
-4292000
-3145000
14557000
10284000
5362000
5604000
6729000
<div> <b> </b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>B.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>INVENTORIES:</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The amount of inventories valued on the LIFO basis was $30,159,000 and $35,095,000 as of December 31, 2011 and 2010, respectively, and consists of housewares/small appliance finished goods. Under LIFO, inventories are valued at approximately $5,518,000 and $4,205,000 below current cost determined on a first-in, first-out (FIFO) basis at December 31, 2011 and 2010, respectively. During the years ended December 31, 2011, 2010, and 2009, $5,474,000, $601,000, and $892,000, respectively, of a LIFO layer was liquidated. The Company uses the LIFO method of inventory accounting to improve the matching of costs and revenues for the Housewares/Small Appliance segment.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The following table describes that which would have occurred if LIFO inventories had been valued at current cost determined on a FIFO basis:</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 95%; border-collapse: collapse; margin-left: 0.25in; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="13">Increase (Decrease) – (In thousands, except per share data)</td></tr>
<tr style="vertical-align: bottom;"><td style="border-bottom: black 1pt solid; font: bold 8pt Times New Roman,serif;">Year</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Cost of<br />Sales</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Net<br />Earnings</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Earnings<br />Per Share</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8;"><td style="width: 52%; font-family: Times New Roman,serif; vertical-align: bottom;">2011</td>
<td style="width: 4%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif; vertical-align: top;">(1,313</td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;">)</td>
<td style="width: 4%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif; vertical-align: top;">832</td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 4%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; width: 10%; font-family: Times New Roman,serif; vertical-align: top;">0.12 </td>
<td style="width: 1%; font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr>
<tr style="background-color: white;"><td style="font-family: Times New Roman,serif; vertical-align: bottom;">2010</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(1,850</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">)</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">1,169</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">0.17</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td></tr>
<tr style="background-color: #d6f3e8;"><td style="font-family: Times New Roman,serif; vertical-align: bottom;">2009</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">2,082</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(1,357</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">)</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;"> </td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: top;">(0.20</td>
<td style="font-family: Times New Roman,serif; vertical-align: bottom;">)</td></tr></table>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">This information is provided for comparison with companies using the FIFO basis.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">Inventory for Defense, Absorbent Products, and raw materials of the Housewares/Small Appliance segments are valued under the first-in, first-out method and total $64,347,000 and $48,037,000 at December 31, 2011 and 2010, respectively. The December 31, 2011 FIFO total is comprised of $2,600,000 of finished goods, $50,462,000 of work in process, and $11,285,000 of raw material and supplies. At December 31, 2010 the FIFO total was comprised of $2,049,000 of finished goods, $37,040,000 of work in process, and $8,948,000 of raw material and supplies.</p> </div>
37144000
32759000
83132000
94506000
8948000
11285000
37040000
50462000
1946000
1955000
415133000
411641000
66729000
65946000
79626000
90305000
101005000
59360000
-37765000
-55481000
-56226000
-98000
-1542000
21816000
62145000
57768000
58686000
62576000
62576000
63531000
63531000
47968000
47968000
91347000
97082000
73984000
<div> <p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>M.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>OPERATING LEASES</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company leases office, manufacturing, and warehouse facilities and equipment under noncancelable operating leases, many of which contain renewal options ranging from one to five years. Rent expense was approximately $806,000, $771,000, and $836,000 for the years ended December 31, 2011, 2010, and 2009, respectively. Future minimum annual rental payments required under operating leases are as follows:</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 50%; border-collapse: collapse; font-size: 10pt;" cellspacing="0" cellpadding="0" align="center">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman, Times, Serif;" nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">Years ending December 31:</font></td>
<td style="font: bold 8pt Times New Roman, Times, Serif;" nowrap="nowrap"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; font: bold 8pt Times New Roman, Times, Serif;" colspan="2" nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">(In thousands)</font></td>
<td style="font: bold 8pt Times New Roman, Times, Serif;" nowrap="nowrap"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="text-align: center; padding-left: 1.5pt; width: 85%; font-family: Times New Roman, Times, Serif;" nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">2012</font></td>
<td style="width: 3%; font-family: Times New Roman, Times, Serif;" nowrap="nowrap"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif;" nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">$</font></td>
<td style="text-align: right; width: 10%; font-family: Times New Roman, Times, Serif; border-top: windowtext 1pt solid;" nowrap="nowrap"><font style="font-family: Times New Roman, Times, Serif;" class="_mt">391</font></td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif;" nowrap="nowrap"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="text-align: center; padding-left: 1.5pt; font-family: Times New Roman,serif;" nowrap="nowrap">2013</td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;" nowrap="nowrap">180</td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="text-align: center; padding-left: 1.5pt; font-family: Times New Roman,serif;" nowrap="nowrap">2014</td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;" nowrap="nowrap">28</td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="text-align: center; padding-left: 1.5pt; font-family: Times New Roman,serif;" nowrap="nowrap">2015</td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;" nowrap="nowrap">28</td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="text-align: center; padding-left: 1.5pt; font-family: Times New Roman,serif;" nowrap="nowrap">2016</td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;" nowrap="nowrap">28</td>
<td style="font-family: Times New Roman,serif;" nowrap="nowrap"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1pt; padding-left: 1.5pt; font-family: Times New Roman,serif;" nowrap="nowrap">Thereafter</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;" nowrap="nowrap">44</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;" nowrap="nowrap"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 2.5pt; padding-left: 1.5pt; font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;" nowrap="nowrap"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;" nowrap="nowrap">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif;" nowrap="nowrap">699</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;" nowrap="nowrap"> </td></tr></table> </div>
14301000
21270000
107000
107000
-514000
-514000
-57000
-57000
-682000
790000
-628000
3050000
2273000
1041000
-228000
1580000
220000
38008000
55889000
56665000
78486000
45464000
40962000
4526000
3337000
17972000
15003000
<div> <b><b><b><b><b><b> </b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: bold 10pt Arial,sans-serif;"><font style="font-family: Times New Roman,serif;" class="_mt"><b>G.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font></b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font-family: Times New Roman,serif;" class="_mt"><b>401(K) PLAN:</b></font></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company sponsors a 401(k) retirement plan that covers substantially all non-union employees. Historically, the Company matched up to 50% of the first 4% of salary contributed by employees to the plan. This matching contribution was made with common stock. Starting in 2004, the Company began to match, in cash, an additional 50% of the first 4% of salary contributed by employees plus 3% of total compensation for certain employees. Contributions made from treasury stock, including the Company's related cash dividends, totaled $1,030,000 in 2011, $904,000 in 2010, and $592,000 in 2009. In addition, the Company made cash contributions of $697,000 in 2011, $667,000 in 2010, and $634,000 in 2009 to the 401(k) Plan. The Company also contributed $369,000, $370,000, and $472,000 to the 401(k) retirement plan covering its union employees at the Amron Division of the AMTEC subsidiary during the years ended December 31, 2011, 2010, and 2009, respectively.</p> </div>
243000
408000
439000
81426000
62109000
82521000
71000
1365000
6000
107099000
121608000
58108000
64268000
<div> <b><b><b><b><b><b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>N.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>INTERIM FINANCIAL INFORMATION (UNAUDITED):</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The following represents quarterly unaudited financial information for 2011 and 2010:</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 100%; border-collapse: collapse; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="18"> (In thousands, except per share data)</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="border-bottom: black 1pt solid; font: bold 8pt Times New Roman,serif;">Quarter</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Net Sales</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Gross <br />Profit</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Net<br />Earnings</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Earnings<br />per Share<br />(Basic)</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Earnings <br />per Share <br />(Diluted)</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">2011</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 9pt; width: 35%; font-family: Times New Roman,serif;">First</td>
<td style="width: 2%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">108,886</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 2%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">21,954</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 2%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">11,363</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 2%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">1.65</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 2%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">1.65</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-left: 9pt; font-family: Times New Roman,serif;">Second</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">98,268</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">20,665</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">10,817</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.57</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.57</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 9pt; font-family: Times New Roman,serif;">Third</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">104,861</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">23,657</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">12,386</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.80</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.80</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-left: 9pt; font-family: Times New Roman,serif;">Fourth</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">119,006</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">27,483</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">13,402</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.96</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.96</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 0.25in; font-family: Times New Roman,serif;">Total</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">431,021</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">93,759</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">47,968</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">6.98</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">6.98</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">2010</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-left: 9pt; font-family: Times New Roman,serif;">First</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">106,400</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">24,587</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">13,199</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.92</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.92</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 9pt; font-family: Times New Roman,serif;">Second</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">117,075</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">26,517</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">14,975</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">2.18</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">2.18</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-left: 9pt; font-family: Times New Roman,serif;">Third</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">113,547</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">24,363</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">13,213</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.93</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">1.92</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 9pt; font-family: Times New Roman,serif;">Fourth</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">141,978</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">38,107</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">22,144</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">3.23</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">3.24</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-left: 0.25in; font-family: Times New Roman,serif;">Total</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">479,000</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">113,574</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">63,531</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">9.26</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">9.26</td>
<td style="font-family: Times New Roman,serif;"> </td></tr></table>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">As shown above, fourth quarter sales are significantly impacted by the holiday driven seasonality of the Housewares/Small Appliance segment. This segment purchases inventory during the first three quarters to meet the sales demand of the fourth quarter. The other segments are typically non-seasonal.</p> </div>
351571000
342873000
478468000
479000000
431021000
<div> <b><b><b><b><b><b><b><b><b><b><b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b>
<p style="text-align: center; margin: 0px; font: 10pt Times New Roman,serif;"><b>SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS</b></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"><b> </b></p>
<p style="text-align: center; margin: 0px; font: 10pt Times New Roman,serif;"><b>For the Years Ended December 31, 2011, 2010 and 2009</b></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"><b> </b></p>
<table style="width: 100%; font: 10pt Times New Roman, Times, Serif;" cellspacing="0" cellpadding="0">
<tr style="font: bold 8pt (default); vertical-align: bottom;"><td> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="14">(In thousands)</td>
<td style="padding-bottom: 1pt;"> </td></tr>
<tr style="font: bold 8pt (default); vertical-align: bottom;"><td style="border-bottom: black 1pt solid; text-align: center;">Column A</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Column B</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Column C</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Column D</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Column E</td>
<td style="padding-bottom: 1pt;"> </td></tr>
<tr style="font: bold 8pt (default); vertical-align: bottom;"><td style="border-bottom: black 1pt solid; text-align: center;">Description</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Balance at<br />Beginning<br />of Period</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Additions (A)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Deductions (B)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Balance at<br />End<br />of Period</td>
<td style="padding-bottom: 1pt;"> </td></tr>
<tr style="font: bold 8pt (default); vertical-align: bottom;"><td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td></tr>
<tr style="background-color: rgb(214,243,232); font: 10pt (default); vertical-align: bottom;"><td style="text-align: left;">Deducted from assets:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-left: 0.25in;">Allowance for doubtful accounts:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: transparent; vertical-align: bottom;"><td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: rgb(214,243,232);"><td style="padding-bottom: 2.5pt; padding-left: 0.5in; width: 40%;">Year ended December 31, 2011</td>
<td style="padding-bottom: 2.5pt; width: 3%;"> </td>
<td style="border-bottom: black 3px double; text-align: left; width: 1%;">$</td>
<td style="border-bottom: black 3px double; text-align: right; width: 10%;">527</td>
<td style="text-align: left; padding-bottom: 2.5pt; width: 1%;"> </td>
<td style="padding-bottom: 2.5pt; width: 3%;"> </td>
<td style="border-bottom: black 3px double; text-align: left; width: 1%;">$</td>
<td style="border-bottom: black 3px double; text-align: right; width: 10%;">1,037</td>
<td style="text-align: left; padding-bottom: 2.5pt; width: 1%;"> </td>
<td style="padding-bottom: 2.5pt; width: 3%;"> </td>
<td style="border-bottom: black 3px double; text-align: left; width: 1%;">$</td>
<td style="border-bottom: black 3px double; text-align: right; width: 10%;">203</td>
<td style="text-align: left; padding-bottom: 2.5pt; width: 1%;"> </td>
<td style="padding-bottom: 2.5pt; width: 3%;"> </td>
<td style="border-bottom: black 3px double; text-align: left; width: 1%;">$</td>
<td style="border-bottom: black 3px double; text-align: right; width: 10%;">1,361</td>
<td style="text-align: left; padding-bottom: 2.5pt; width: 1%;"> </td></tr>
<tr style="background-color: transparent; vertical-align: bottom;"><td style="padding-left: 0.5in;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: rgb(214,243,232);"><td style="padding-bottom: 2.5pt; padding-left: 0.5in;">Year ended December 31, 2010</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">467</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">50</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">(10</td>
<td style="text-align: left; padding-bottom: 2.5pt;">)</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">527</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td></tr>
<tr style="background-color: transparent; vertical-align: bottom;"><td style="padding-left: 0.5in;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: rgb(214,243,232);"><td style="padding-bottom: 2.5pt; padding-left: 0.5in;">Year ended December 31, 2009</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">480</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">13</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">467</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td></tr></table>
<p style="margin: 0px; font: 12pt Times New Roman,serif;"> </p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;">Notes:</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">(A) Amounts charged to selling and general expenses</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">(B) Principally bad debts written off, net of recoveries</p>
<p style="margin: 0px; font: 12pt Times New Roman,serif;"> </p>
<table style="width: 100%; font: 10pt Times New Roman, Times, Serif;" cellspacing="0" cellpadding="0">
<tr style="font: bold 8pt (default); vertical-align: bottom;"><td> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="14">(In thousands)</td>
<td style="padding-bottom: 1pt;"> </td></tr>
<tr style="font: bold 8pt (default); vertical-align: bottom;"><td style="border-bottom: black 1pt solid; text-align: center;">Column A</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Column B</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Column C</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Column D</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Column E</td>
<td style="padding-bottom: 1pt;"> </td></tr>
<tr style="font: bold 8pt (default); vertical-align: bottom;"><td style="border-bottom: black 1pt solid; text-align: center;">Description</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Balance at<br />Beginning<br />of Period</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Additions</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Deductions</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Balance at<br />End<br />of Period</td>
<td style="padding-bottom: 1pt;"> </td></tr>
<tr style="font: bold 8pt (default); vertical-align: bottom;"><td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td>
<td> </td>
<td style="text-align: right;" colspan="2"> </td>
<td> </td></tr>
<tr style="background-color: rgb(214,243,232);"><td style="text-align: left; padding-left: 0.25in;">Valuation allowance for deferred tax assets</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: rgb(214,243,232);"><td style="padding-bottom: 2.5pt; padding-left: 0.5in; width: 40%;">Year ended December 31, 2011</td>
<td style="padding-bottom: 2.5pt; width: 3%;"> </td>
<td style="border-bottom: black 3px double; text-align: left; width: 1%;">$</td>
<td style="border-bottom: black 3px double; text-align: right; width: 10%;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt; width: 1%;"> </td>
<td style="padding-bottom: 2.5pt; width: 3%;"> </td>
<td style="border-bottom: black 3px double; text-align: left; width: 1%;">$</td>
<td style="border-bottom: black 3px double; text-align: right; width: 10%;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt; width: 1%;"> </td>
<td style="padding-bottom: 2.5pt; width: 3%;"> </td>
<td style="border-bottom: black 3px double; text-align: left; width: 1%;">$</td>
<td style="border-bottom: black 3px double; text-align: right; width: 10%;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt; width: 1%;"> </td>
<td style="padding-bottom: 2.5pt; width: 3%;"> </td>
<td style="border-bottom: black 3px double; text-align: left; width: 1%;">$</td>
<td style="border-bottom: black 3px double; text-align: right; width: 10%;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt; width: 1%;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 0.5in;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: rgb(214,243,232);"><td style="padding-bottom: 2.5pt; padding-left: 0.5in;">Year ended December 31, 2010</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="padding-left: 0.5in;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td></tr>
<tr style="background-color: rgb(214,243,232);"><td style="padding-bottom: 2.5pt; padding-left: 0.5in;">Year ended December 31, 2009</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">709</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">709</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="border-bottom: black 3px double; text-align: left;">$</td>
<td style="border-bottom: black 3px double; text-align: right;">—</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td></tr></table> </div>
<div> <b><b><b><b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>L.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>BUSINESS SEGMENTS:</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company operates in three business segments. The Company identifies its segments based on the Company's organization structure, which is primarily by principal products. The principal product groups are Housewares/Small Appliances, Defense Products, and Absorbent Products. Sales for all three segments are primarily to customers in North America.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Housewares/Small Appliance segment designs, markets, and distributes housewares and small appliances. These products are sold primarily in the United States and Canada directly to retail outlets and also through independent distributors. As more fully described in Note J, the Company primarily sources its Housewares/Small Appliance products from non-affiliated suppliers located in the Orient. Sales are seasonal, with the normal peak sales period occurring in the fourth quarter of the year prior to the holiday season.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Defense Segment was started in 2001 with the acquisition of AMTEC Corporation, which manufactures precision mechanical and electromechanical assemblies for the U.S. government and prime contractors. During 2005, and again during 2010, AMTEC Corporation was one of two prime contractors selected by the Army to supply all requirements for the 40mm family of practice and tactical ammunition cartridges for a period of five years. AMTEC's manufacturing plant is located in Janesville, Wisconsin. During 2003, this segment was expanded with the acquisition of Spectra Technologies, LLC of East Camden, Arkansas. This facility performs Load, Assemble, and Pack (LAP) operations on ordnance-related products for the U.S. government and prime contractors. During 2006, the segment was expanded with the acquisition of certain assets of Amron, LLC of Antigo, Wisconsin, which primarily manufactures cartridge cases used in medium caliber (20-40mm) ammunition. In 2011 the segment was further augmented with the purchase of certain assets of ALS Technologies, Inc. of Bull Shoals, Arkansas, which manufactures less than lethal ammunitions.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Absorbent Products segment was started in 2001 with the acquisition of certain assets from RMED International, Inc, forming Presto Absorbent Products, Inc. This company manufactured diapers. During 2003, this segment was expanded with the purchase of the assets of NCN Hygienic Products, Inc., a Marietta, Georgia manufacturer of adult incontinence products and training pads for dogs. Starting in 2004, the company began making adult incontinence products at the Company's facilities in Eau Claire, Wisconsin. The segment's products are sold to distributors and other absorbent product manufacturers. In 2007, the Company completed the closure of the Georgia facility and consolidated its absorbent products manufacturing in the Eau Claire, Wisconsin facility. It no longer manufactures dog pads.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">In the following summary, operating profit represents earnings before other income, principally interest income, and income taxes. The Company's segments operate discretely from each other with no shared manufacturing facilities. Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliance segment for all periods presented.</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 100%; border-collapse: collapse; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="14">(in thousands)</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Housewares /<br />Small<br />Appliances</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Defense<br />Products</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Absorbent<br />Products</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Total</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: bold 10pt Times New Roman,serif;">Year ended December 31, 2011</td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: bold 10pt Times New Roman,serif;"> </td>
<td style="font: bold 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="width: 40%; font: 10pt Times New Roman,serif;">External net sales</td>
<td style="width: 3%; font: 10pt Times New Roman,serif;"> </td>
<td style="width: 1%; font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; width: 10%; font: 10pt Times New Roman,serif;">130,852</td>
<td style="width: 1%; font: 10pt Times New Roman,serif;"> </td>
<td style="width: 3%; font: 10pt Times New Roman,serif;"> </td>
<td style="width: 1%; font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; width: 10%; font: 10pt Times New Roman,serif;">202,372</td>
<td style="width: 1%; font: 10pt Times New Roman,serif;"> </td>
<td style="width: 3%; font: 10pt Times New Roman,serif;"> </td>
<td style="width: 1%; font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; width: 10%; font: 10pt Times New Roman,serif;">97,797</td>
<td style="width: 1%; font: 10pt Times New Roman,serif;"> </td>
<td style="width: 3%; font: 10pt Times New Roman,serif;"> </td>
<td style="width: 1%; font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; width: 10%; font: 10pt Times New Roman,serif;">431,021</td>
<td style="width: 1%; font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Gross profit</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">27,016</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">62,006</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">4,737</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">93,759</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Operating profit</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">16,716</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">55,049</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">2,219</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">73,984</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Total assets</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">238,534</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">109,137</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">63,970</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">411,641</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Depreciation and amortization</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">993</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">3,469</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">4,575</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">9,037</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Capital expenditures</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">3,249</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">1,558</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">10,196</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">15,003</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: bold 10pt Times New Roman,serif;">Year ended December 31, 2010</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">External net sales</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">157,474</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">240,762</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">80,764</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">479,000</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Gross profit</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">37,032</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">68,071</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">8,471</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">113,574</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Operating profit</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">27,558</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">61,443</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">8,081</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">97,082</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Total assets</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">256,945</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">106,487</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">51,701</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">415,133</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Depreciation and amortization</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">926</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">3,650</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">4,061</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">8,637</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Capital expenditures</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">1,117</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">3,473</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">13,382</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">17,972</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: bold 10pt Times New Roman,serif;">Year ended December 31, 2009</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">External net sales</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">150,016</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">253,789</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">74,663</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;">$</td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">478,468</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Gross profit</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">40,336</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">61,866</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">7,890</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">110,092</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Operating profit</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">30,290</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">54,823</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">6,234</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">91,347</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Total assets</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">260,854</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">107,907</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">33,644</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">402,405</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Depreciation and amortization</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">925</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">3,570</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">4,243</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">8,738</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font: 10pt Times New Roman,serif;">Capital expenditures</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">1,240</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">1,275</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">822</td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="font: 10pt Times New Roman,serif;"> </td>
<td style="text-align: right; font: 10pt Times New Roman,serif;">3,337</td>
<td style="font: 10pt Times New Roman,serif;"> </td></tr></table> </div>
18745000
16492000
19775000
6848000
6858000
6865000
6875000
<div> <b><b><b><b><b><b><b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>O.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>LINE OF CREDIT AND COMMERCIAL LETTERS OF CREDIT</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">The Company maintains an unsecured line of credit for short term operating cash needs. The line of credit is renewed each year at the end of the third quarter. As of December 31, 2011 and 2010, the line of credit limit was set at $5,000,000, with $0 outstanding on both dates. The interest rate on the line of credit is reset monthly to the London Inter-Bank Offered Rate (LIBOR) plus one half of one percent. In addition, the Company had issued commercial letters of credit totaling $1,940,000 and $0 as of December 31, 2011 and 2010, respectively, related to performance on certain customer contracts. As of December 31, 2011, the entire balance of the letters of credit was unused.</p> </div>
<div> <p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>A.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:</b></font></b></p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(1)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS: In preparation of the Company's consolidated financial statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and related revenues and expenses. Actual results could differ from the estimates used by management.</font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(2)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of National Presto Industries, Inc. and its subsidiaries, all of which are wholly-owned. All material intercompany accounts and transactions are eliminated. For a further discussion of the Company's business and the segments in which it operates, please refer to Note L.</font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(3)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">FAIR VALUE OF FINANCIAL INSTRUMENTS: The Company utilizes the methods of determining fair value as described in Financial Accounting Standard Board ("FASB") Accounting Standard Codification ("ASC") 820, <i>Fair Value Measurements and Disclosures</i> to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.</font></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">The carrying amount for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximates fair value due to the immediate or short-term maturity of these financial instruments.</p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(4)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES: </font></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"><b> </b></p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"><b>Cash and Cash Equivalents: </b>The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents. Cash equivalents include money market funds and certificates of deposit. The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. Certificates of deposit are reported at par value, and money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820).</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">The Company's cash management policy provides for its bank disbursement accounts to be reimbursed on a daily basis. Checks issued but not presented to the bank for payment of $5,313,000 and $2,788,000 at December 31, 2011 and 2010, respectively, are included as reductions of cash and cash equivalents or bank overdrafts in accounts payable, as appropriate.</p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"><b>Marketable Securities: </b>The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity. Highly liquid, tax exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities. Also included are certificates of deposit with maturities greater than three months.</p>
<p style="margin: 0px 0px 0px 17.4pt; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">At December 31, 2011 and 2010, cost for marketable securities was determined using the specific identification method. A summary of the amortized costs and fair values of the Company's marketable securities at December 31 is shown in the following table. All of the Company's marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable. There were no transfers into or out of Level 2 during 2011.</p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 90%; border-collapse: collapse; margin-left: 0.5in; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="14">(In thousands)</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="14">MARKETABLE SECURITIES</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Amortized<br />Cost</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Fair Value</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Gross <br />Unrealized <br />Gains</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">Gross <br />Unrealized<br />Losses</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif; text-decoration: underline;">December 31, 2011</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="width: 44%; font-family: Times New Roman,serif;">Tax-exempt Municipal Bonds</td>
<td style="width: 3%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">26,214</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 3%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">26,326</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 3%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">128</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 3%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 9%; font-family: Times New Roman,serif;">16</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Variable Rate Demand Notes</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; font-family: Times New Roman,serif;">33,034</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; font-family: Times New Roman,serif;">33,034</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; font-family: Times New Roman,serif;">0</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: windowtext 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; font-family: Times New Roman,serif;">0</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Total Marketable Securities</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">59,248</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">59,360</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">128</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">16</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif; text-decoration: underline;">December 31, 2010</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Tax-exempt Municipal Bonds</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">62,339</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">62,537</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">354</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">156</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Variable Rate Demand Notes</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">37,779</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">37,779</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">0</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif;">0</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">Certificates of Deposit</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">689</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">689</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">0</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">0</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;">Total Marketable Securities</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">100,807</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">101,005</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">354</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; font-family: Times New Roman,serif;">156</td>
<td style="font-family: Times New Roman,serif;"> </td></tr></table>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">Proceeds from sales of marketable securities totaled $82,521 in 2011, $62,109,000 in 2010, and $81,426,000 in 2009. There were no gross gains or gross losses related to sales of marketable securities during the years ended December 31, 2011, 2010 and 2009. Net unrealized gains (losses) are reported as a separate component of accumulated other comprehensive income and were gains of $112,000, $198,000 and $990,000 before taxes at December 31, 2011, 2010, and 2009, respectively. No unrealized gains were reclassified out of accumulated other comprehensive income (loss) during the years ended December 31, 2011, 2010, and 2009.</p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">The contractual maturities of the marketable securities held at December 31, 2011 are as follows: $8,288,000 within one year; $17,193,000 beyond one year to five years; $12,654,000 beyond five years to ten years, and $21,225,000 beyond ten years.<font style="color: black;" class="_mt"> All of the instruments in the beyond five year ranges, with the exception of $4,804,000 of tax-exempt municipal bonds with maturities between five and seven years, are variable rate demand notes which as noted above can be tendered for cash at par plus interest within seven days. Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable. </font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(5)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">ACCOUNTS RECEIVABLE: The Company's accounts receivable are related to sales of products. Credit is extended based on prior experience with the customer and evaluation of customers' financial condition. Accounts receivable are primarily due within 30 to 60 days. <font style="color: black;" class="_mt">The Company does not accrue interest on past due accounts receivable. Receivables are written off only after all collection attempts have failed and are based on individual credit evaluation and the specific circumstances of the customer. </font>The allowance for doubtful accounts represents an estimate of amounts considered uncollectible and is determined based on the Company's historical collection experience, adverse situations that may affect the customer's ability to pay, and prevailing economic conditions.</font></p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(6)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">INVENTORIES: Housewares/Small Appliance segment inventories are stated at the lower of cost or market with cost being determined principally on the last-in, first-out (LIFO) method. Inventories for the Defense and Absorbent Products segments are stated at the lower of cost or market with cost being determined on the first-in, first-out (FIFO) method.</font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(7)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment are stated at cost. For machinery and equipment, all amounts which are fully depreciated have been eliminated from both the asset and allowance accounts. Straight-line depreciation is provided in amounts sufficient to charge the costs of depreciable assets to operations over their service lives which are estimated at 15 to 40 years for buildings, 3 to 10 years for machinery and equipment, and 15 to 20 years for land improvements. The Company reviews long lived assets consisting principally of property, plant, and equipment, for impairment when material events and changes in circumstances indicate the carrying value may not be recoverable.</font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(8)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">GOODWILL: The Company recognizes the excess cost of acquired entities over the net amount assigned to the fair value of assets acquired and liabilities assumed as goodwill. Goodwill is tested for impairment on an annual basis at the start of the fourth quarter and between annual tests whenever an impairment is indicated, such as the occurrence of an event that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Impairment losses are recognized whenever the implied fair value of goodwill is less than its carrying value. No goodwill impairments were recognized during 2011, 2010, or 2009. The Company's goodwill as of December 31, 2011 and 2010 was $18,468,000 and $11,485,000, respectively, relating entirely to its Defense Products segment, which had zero cumulative impairment charges at December 31, 2011. During 2011, $6,983,000 was added to goodwill as a result of the acquisition of the assets of ALS Technologies, Inc., more fully described in Note P. The acquisition purchase price allocation to goodwill is preliminary and will be finalized in 2012 upon the completion of a business valuation. The Absorbent Products segment value of goodwill was $0, with cumulative impairment charges of $4,648,000, at both December 31, 2011 and 2010. The Company has no recorded intangible assets, other than goodwill.</font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(9)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">REVENUE RECOGNITION: For all of its segments, the Company recognizes revenue when product is shipped or title passes pursuant to customers' orders, the price is fixed and collection is reasonably assured. For the Housewares/Small appliance segment, the Company provides for its 60-day over-the-counter return privilege and warranties at the time of shipment. Net sales for this segment are calculated by deducting early payment discounts and cooperative advertising allowances from gross sales. The Company records cooperative advertising allowances when revenue is recognized. See Note A(10) for a description of the Company's policy for sales returns.</font></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.3in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(10)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">SALES & RETURNS: Sales are recorded net of estimated discounts and returns. The latter pertain primarily to warranty returns, returns of seasonal items, and returns of those newly introduced products sold with a return privilege. The calculation of warranty returns is based in large part on historical data, while seasonal and new product returns are primarily developed using customer provided information. </font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.3in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(11)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">SHIPPING AND HANDLING COSTS: In accordance with FASB ASC 605-45, <i>Revenue Recognition</i>, the Company includes shipping and handling revenues in net sales and shipping costs in cost of sales.</font></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.3in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(12)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">ADVERTISING: The Company's policy is to expense advertising as incurred and include it in selling and general expenses. Advertising expense was $70,000, $9,000, and $237,000 in 2011, 2010, and 2009, respectively.</font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.3in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(13)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">ACCUMULATED OTHER COMPREHENSIVE INCOME: The $72,000 and $129,000 of accumulated comprehensive income at December 31, 2011 and 2010, respectively, relate to the unrealized gain on the Company's available-for-sale marketable security investments. These amounts are recorded net of tax effect of $40,000 and $69,000 for 2011 and 2010, respectively.</font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.3in; margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt">(14)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt">PRODUCT WARRANTY: The Company's Housewares/Small Appliance segment's products are generally warranted to the original owner to be free from defects in material and workmanship for a period of 1 to 12 years from date of purchase. The Company allows a 60-day over-the-counter initial return privilege through cooperating dealers. The Company services its products through a corporate service repair operation. The Company estimates its product warranty liability based on historical percentages which have remained relatively consistent over the years.</font></p>
<p style="margin: 0px; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">The product warranty liability is included in accounts payable on the balance sheet. The following table shows the changes in product warranty liability for the period:</p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<table style="width: 90%; border-collapse: collapse; margin-left: 0.5in; font-size: 10pt;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="6">(In thousands)<br />Year Ended December 31</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="vertical-align: bottom;"><td style="text-align: center; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">2011</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: center; font: bold 8pt Times New Roman,serif;" colspan="2">2010</td>
<td style="padding-bottom: 1pt; font: bold 8pt Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="width: 57%; font-family: Times New Roman,serif;">Beginning balance January 1</td>
<td style="width: 8%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 11%; font-family: Times New Roman,serif;">326</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td>
<td style="width: 8%; font-family: Times New Roman,serif;"> </td>
<td style="width: 1%; font-family: Times New Roman,serif;">$</td>
<td style="text-align: right; width: 12%; font-family: Times New Roman,serif;">405</td>
<td style="width: 1%; font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr><td style="font-family: Times New Roman,serif;">Accruals during the period</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: bottom;">523</td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="text-align: right; font-family: Times New Roman,serif; vertical-align: bottom;">353</td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr style="background-color: #d6f3e8; vertical-align: bottom;"><td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">Charges / payments made under the warranties</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">(508</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">)</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; font-family: Times New Roman,serif;">(432</td>
<td style="padding-bottom: 1pt; font-family: Times New Roman,serif;">)</td></tr>
<tr style="background-color: white; vertical-align: bottom;"><td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td style="font-family: Times New Roman,serif;"> </td>
<td> </td>
<td style="font-family: Times New Roman,serif;"> </td></tr>
<tr><td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;">Balance December 31</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif; vertical-align: bottom;">341</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td>
<td style="border-bottom: black 3px double; font-family: Times New Roman,serif;">$</td>
<td style="border-bottom: black 3px double; text-align: right; font-family: Times New Roman,serif; vertical-align: bottom;">326</td>
<td style="padding-bottom: 2.5pt; font-family: Times New Roman,serif;"> </td></tr></table>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.3in; margin: 0px 0px 0px 0.5in; font: 10pt Courier New;"><font style="font-family: Times New Roman,serif;" class="_mt">(15)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font-family: Times New Roman,serif;" class="_mt">STOCK-BASED COMPENSATION: The Company accounts for stock-based compensation in accordance with ASC 718, <i>Compensation — Stock Compensation</i>. Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, net of estimated forfeitures. As more fully described in Note F, the Company awards non-vested restricted stock to employees and executive officers.</font></p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.3in; margin: 0px 0px 0px 0.5in; font: 10pt Courier New;"><font style="font-family: Times New Roman,serif;" class="_mt">(16)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font-family: Times New Roman,serif;" class="_mt">INCOME TAXES: Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting bases of assets and liabilities based on enacted tax rates and laws. The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year. The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported. Income tax contingencies are accounted for in accordance with FASB ASC 740, <i>Income Taxes</i>. See Note H for summaries of the provision, the effective tax rates, and the tax effects of the cumulative temporary differences resulting in deferred tax assets and liabilities. </font></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;"> </p>
<p style="text-indent: -0.3in; margin: 0px 0px 0px 0.5in; font: 10pt Courier New;"><font style="font-family: Times New Roman,serif;" class="_mt">(17)</font><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font-family: Times New Roman,serif;" class="_mt">RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS: </font></p>
<p style="text-align: justify; margin: 0px; font: 10pt Times New Roman,serif;"><b> </b></p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">In January 2010, the FASB issued Accounting Standards Update ("ASU") No. 2010-06, <i>Fair Value Measurements and Disclosures (Topic 820) – Improving Disclosures about Fair Value Measurements</i>, to provide amendments to Subtopic 820-10 that require new disclosures about transfers into and out of Level 1 and Level 2 of the fair value hierarchy and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. Specifically, for assets and liabilities that are measured at fair value on a recurring basis in periods after initial recognition (e.g., trading securities), this ASU requires: separate disclosure of the amount of significant transfers between Levels 1 and 2 and a description of the reasons for the transfers; and separate information about purchases, sales, issuances, and settlements, on a gross basis, in the reconciliation of Level 3 fair value measurements valued using significant unobservable inputs. ASU 2010-06 clarifies existing disclosures as follows:</p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 1in; font: 10pt Times New Roman,serif;">Level of disaggregation: An entity should provide fair value measurement disclosures for each class of assets and liabilities. A class is often a subset of assets or liabilities within a line item in the statement of financial position. An entity needs to use judgment in determining the appropriate classes of assets and liabilities.</p>
<p style="margin: 0px 0px 0px 1.4in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 1in; font: 10pt Times New Roman,serif;">Disclosures about inputs and valuations techniques: An entity should provide disclosures about the valuation techniques (i.e., the income, market, or cost approaches) and input used to measure fair value for both recurring and nonrecurring fair value measurements. Those disclosures are required for fair value measurements that fall in either Level 2 or Level 3.</p>
<p style="margin: 0px 0px 0px 1.4in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">ASU 2010-06 also includes conforming amendments to the guidance on employers' disclosures about postretirement benefit plan assets (Subtopic 715-20), which include a change in terminology from <i>major categories</i> of assets to <i>classes</i> of assets and a cross-reference to the guidance in Subtopic 820-10 on how to determine appropriate classes to present fair value disclosures. This ASU is effective for interim and annual reporting periods beginning after December 15, 2009, except for the separate disclosures about purchases, sales, issuance and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. In the period of initial adoption, entities will not be required to provide the amended disclosures for any previous periods presented for comparative purposes. However, comparative disclosures are required for periods ending after initial adoption. Early adoption is permitted. Except for the separate disclosures about purchases, sales, issuance and settlements in the roll forward of activity in Level 3 fair value measurements, the Company adopted ASU 2010-06 during the first quarter of 2010, which did not have a material effect on the Company's consolidated financial statements. The Company adopted the separate disclosures about purchases, sales, issuance and settlements in the roll forward of activity in Level 3 fair value measurements during the first quarter of 2011, which did not have a material effect on the Company's consolidated financial statements.</p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">In May 2011, the FASB issued ASU No. 2011-04, <i>Amendments to Achieve Common Fair Value </i>Measurement<i> and Disclosure Requirements in U.S. GAAP and IFRSs</i>. The amendments in this ASU generally represent clarifications of Topic 820, but also include some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This ASU results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and IFRSs. The amendments in this ASU are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted. The Company will adopt the methodologies prescribed by ASU 2011-04 by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations.</p>
<p style="margin: 0px 0px 0px 0.7in; font: 10pt Times New Roman,serif;"> </p>
<p style="margin: 0px 0px 0px 0.5in; font: 10pt Times New Roman,serif;">In June 2011, the FASB issued ASU No. 2011-05, <i>Amendments to Topic 220, Comprehensive Income</i>. Under the amendments in this ASU, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The amendments in this ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The amendments in this ASU should be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted, because compliance with the amendments is already permitted. The amendments do not require any transition disclosures. In December 2011, the FASB deferred the requirement to present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income with the issuance of ASU 2011-12, <i>Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05</i>. Companies are required to either present amounts reclassified out of other comprehensive income on the face of the financial statements or disclose those amounts in the notes to the financial statements. During the deferral period, there is no requirement to separately present or disclose the reclassification adjustments into net income. The effective date of the deferral is consistent with the effective date of the ASU No. 2011-05. The Company will adopt ASU 2011-5 retrospectively by the required date.</p> </div>
343937000
336290000
361879000
353925000
592000
302000
290000
937000
701000
-1000
237000
1107000
801000
-1000
307000
10000
7000
10000
<div> <b><b><b><b><b><b><b><b><b><b><b><b><b><b><b><b><b> </b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>R.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>SUBSEQUENT EVENT</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">On February 17, 2012, the Company's Board of Directors announced a regular dividend of $1.00 per share, plus an extra dividend of $5.00 per share. On March 15, 2012, a payment of $41,292,000 was made to the shareholders of record as of March 2, 2012.</p> </div>
575368
565517
<div> <b><b><b> </b></b></b>
<p style="text-indent: -0.25in; margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman, Times, Serif;"><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>D.</b></font><b><font style="font: 7pt Times New Roman;" class="_mt"> </font><font style="font: 10pt Times New Roman,serif;" class="_mt"><b>TREASURY STOCK:</b></font></b></p>
<p style="margin: 0px 0px 0px 0.25in; font: 10pt Times New Roman,serif;">As of December 31, 2011, the Company has authority from the Board of Directors to reacquire an additional 504,600 shares. No shares were reacquired in 2011, 2010, or 2009. Treasury shares have been used for stock based compensation and to fund a portion of the Company's 401(k) contributions.</p> </div>
17942000
17635000
6854000
6862000
6872000
6854000
6862000
6871000