Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

Income taxes for interim periods have been computed using an estimated annual effective tax rate. This rate is revised, if necessary,

at the end of each successive interim period to reflect the current estimate of the annual effective tax rate.

The provision for income taxes consisted of the following:	For the Three Months Ended						For the Nine Months Ended
	September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
Current	$	3,394		$	2,568		$	7,358		$	5,697
Deferred	(1,126		)	(171		)	(1,310		)	695
Income taxes	$	2,268		$	2,397		$	6,048		$	6,392

The reconciliation of the income tax expense at the federal statutory income tax rate of 35% is as follows:

	For the Three Months Ended										For the Nine Months Ended
	September 30, 2013					September 30, 2012					September 30, 2013					September 30, 2012
	Amount			Percent of Pre-tax Income		Amount			Percent of Pre-tax Income		Amount			Percent of Pre-tax Income		Amount			Percent of Pre-tax Income
Income taxes at federal income tax rate	$	1,875		35.00	%	$	2,258		35.00	%	$	5,977		35.00	%	$	6,243		35.00	%
Effect of:
Small life deduction	(197		)	(3.68	)	(140		)	(2.17	)	(388		)	(2.27	)	(368		)	(2.06	)
Non-deductible expenses	34			0.63		17			0.26		81			0.47		87			0.49
Tax exempt interest	(38		)	(0.71	)	(23		)	(0.36	)	(109		)	(0.64	)	(73		)	(0.41	)
State taxes	170			3.17		67			1.04		415			2.43		319			1.79
Prior year tax true-up	312			5.82		116			1.80		312			1.83		103			0.58
Non-controlling interest	47			0.88		—			—		(304		)	(1.78	)	—			—
Other, net	65			1.21		102			1.58		64			0.37		81			0.45
Income taxes	$	2,268		42.32	%	$	2,397		37.15	%	$	6,048		35.41	%	$	6,392		35.84	%

The Company's majority-owned subsidiary, ProtectCELL, is taxed as a partnership, therefore, the non-controlling interest is recorded on a pre-tax basis, and the tax effect is shown in the income tax rate reconciliation in the above table. The Company records tax balances only on its ownership interest in ProtectCELL.

As of September 30, 2013, the Company has fully utilized its net operating loss carryforward which was subject to limitation under Section 382 of the Internal Revenue Code ("IRC").

The Company has research and experimentation tax credit carry forwards for federal and state income tax purposes in the amount of $0.5 million and $0.2 million, respectively. The Federal Research Credit is also subject to certain limitations under IRC Section 382. The Federal Research Credit carry forwards will begin to expire in 2019. The Company carries a $0.2 million liability against the deferred tax asset associated with these credits, unchanged in the current period.

During the later part of 2012, the Company was under examination by the Internal Revenue Service ("IRS") for the 2009 and 2010 tax years. In February 2013, the IRS completed its field audit for those tax years and in March 2013, the Company received notice from the IRS that the audit report has been fully approved. The Company has agreed to those findings and paid $57.0 thousand, which was expensed during the first quarter of 2013.

The Company has reviewed its uncertain tax positions and management has concluded that there are no additional amounts required to be recorded in accordance with ASC 740-10.