INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Expense (Benefit)

The components of the income tax expense (benefit) are as follows:

	2013		2012		2011
Current
Federal	$	11,308,000	$	9,787,000	$	2,347,000
State		(202,000)		132,000		777,000
Total Current		11,106,000		9,919,000		3,124,000
Deferred
Federal	$	(863,000)	$	(1,210,000)	$	5,446,000
State		(25,000)		(127,000)		569,000
Total Deferred		(888,000)		(1,337,000)		6,015,000
Total Income Tax Expense	$	10,218,000	$	8,582,000	$	9,139,000

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) consisted of the following at December 31,

	2013		2012		2011
Deferred compensation		-		-		301,000
Reserves on inventory and sales		332,000		336,000		242,000
Credit and loss carryforwards		413,000		692,000		545,000
Stock compensation		896,000		-		-
Accrued expenses and deferred costs		1,260,000		690,000		516,000
Inventory capitalization		337,000		526,000		555,000
Sales tax accrual		337,000		1,228,000		-
Total deferred tax assets		3,575,000		3,472,000		2,159,000
Unrealized gain/loss on investments		(476,000)		(333,000)		(250,000)
Prepaid expenses		(710,000)		(752,000)		(426,000)
Depreciation		(7,091,000)		(7,729,000)		(8,075,000)
Stock compensation		-		(105,000)		(109,000)
Total deferred tax liabilities		(8,277,000)		(8,919,000)		(8,860,000)
Net deferred tax liabilities	$	(4,702,000)	$	(5,447,000)	$	(6,701,000)

Statutory Tax Rate and Effective Tax Rate

The differences between the United States federal statutory tax rate and the Company's effective tax rate are as follows:

	2013				2012					2011
Statutory federal tax	$	11,965,000	35.0	%	$	8,559,000	35.0	%	$	9,688,000	35.0	%
State income taxes, net of federal benefit		304,000	0.9	%		679,000	2.8	%		1,015,000	3.7	%
Domestic manufacturer deduction		(979,000)	-2.9	%		(902,000)	-3.7	%		(248,000)	-0.9	%
FTC settlement		-	0.0	%		1,389,000	5.7	%		-
Other permanent differences		173,000	0.5	%		(190,000)	-0.8	%		71,000	0.3	%
Research and development and jobs credits		(459,000)	-1.3	%		(267,000)	-1.1	%		(336,000)	-1.2	%
Other state income tax benefits		(707,000)	-2.1	%		(686,000)	-2.8	%		(1,051,000)	-3.9	%
Other		(79,000)	-0.2	%		-				-
	$	10,218,000	29.9	%	$	8,582,000	35.1	%	$	9,139,000	33.0	%