INCOME TAXES

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

6.           INCOME TAXES

Deferred tax assets and liabilities are determined based on the differences between the financial and tax basis of existing assets and liabilities using the currently enacted tax rates in effect for the year in which the differences are expected to reverse. 

The provision for income taxes on income consisted of the following in 2013, 2012 and 2011:

	2013			2012			2011
Current:
Federal	$	3,960		$	202		$	11,902
State		415			321			1,428
Foreign		1,025			1,798			1,584
		5,400			2,321			14,914
Deferred:
Federal		(238	)		1,095			245
State		(28	)		122			27
Foreign		41			(7	)		(66	)
		(225	)		1,210			206
	$	5,175		$	3,531		$	15,120

The principal differences between the federal statutory tax rate and the income tax expense in 2013, 2012 and 2011:

	2013			2012			2011
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal tax benefit		3.7	%		4.0	%		4.0	%
Excess of foreign tax over US tax on foreign income		0.3	%		0.6	%		0.6	%
Domestic Tax Credits		(1.5	)%		(10.8	)%		--
Other		(0.2	)%		(0.9	)%		0.1	%
Effective tax rate		37.3	%		27.9	%		39.7	%

Income taxes for 2012 include $1,361 of income tax benefits resulting primarily from Federal Domestic Activity Deductions, as well as Federal Research and Development and other tax credits recognized during the period.

Deferred income tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting and income tax reporting purposes. Temporary differences and carry forwards which give rise to deferred tax assets and liabilities at December 31, 2013 and 2012 are as follows:

	2013		2012
Deferred tax assets:
Allowance for doubtful accounts	$	95	$	95
Accruals and reserves		3,739		3,390
Other		54		96
Total deferred tax assets		3,888		3,581
Deferred tax liabilities:
Property, plant, and equipment		1,842		1,758
Total deferred tax liabilities		1,842		1,758
Net deferred tax asset	$	2,046	$	1,823

As of December 31, 2013, the Company has no federal or state net operating loss carryforwards.

At December 31, 2013 and 2012, the Company had no unrecognized tax positions. The Company does not expect its unrecognized tax positions to change significantly in the next twelve months. If unrecognized tax positions existed, the interest and penalties related to the unrecognized tax positions would be recorded as income tax expense in the consolidated statements of income.

The Company is subject to United States federal income taxes, as well as income taxes in various states and foreign jurisdictions. The Company’s tax years 2010 through 2012 remain open to examination for U.S. Federal and state income taxes.