INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of components of the provision for income taxes

Years ended December 31,	2020		2019		2018
(in thousands)
Current provision:
Federal	$	4,741	$	6,637	$	6,173
State		582		202		616
Deferred (benefit) provision:
Federal		(410)		(715)		384
State		99		95		(6)
Total income tax provision	$	5,012	$	6,219	$	7,167

Schedule of reconciliation between the federal statutory rate and effective tax rate

Years ended December 31,	2020		2019		2018
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	1.4		1.0		1.5
Research and experimentation credit	(1.5)		(1.2)		(0.8)
Non-deductible expenses	0.1		(0.7)		0.4
Change in contingencies	0.1		(0.1)		0.4
Adjustments related to the Act	—		—		(0.3)
Adjustments related to vesting of restricted stock	(1.5)		(1.5)		(1.8)
Other	0.9		(0.5)		(0.3)
Effective tax rate	20.5	%	18.0	%	20.1	%

Schedule of components of deferred tax assets and liabilities

December 31,	2020		2019
(in thousands)
Deferred tax assets:
Warranty costs	$	1,107	$	1,190
Sales incentives and discounts		278		404
Stock-based compensation		717		696
Pension		2,365		2,002
State NOL’s		423		484
State credits		1,818		1,818
All others		635		560
Valuation allowance		(1,818)		(1,818)
Total deferred tax assets		5,525		5,336
Deferred tax liabilities:
Depreciation and amortization expense		(965)		(947)
Basis differences in joint venture		(485)		(399)
Net deferred tax assets	$	4,075	$	3,990

Schedule of unrecognized tax benefits

	2020		2019
Balance at January 1	$	358,000	$	393,000
Additions (reductions) based on tax positions related to the current year		34,000		(28,000)
Additions (reductions) for tax positions of prior years		9,000		(7,000)
Balance at December 31	$	401,000	$	358,000