Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Expense

The items comprising income tax expense are as follows (in thousands):

	Year ended December 31,
	2013			2012		2011
Current                  —   Federal	$	12,541		$	8,934	$	9,973
—   State		1,065			1,050		880
		13,606			9,984		10,853
Deferred               —    Federal		(1,063	)		1,363		2,372
—    State		140			99		212
		(923	)		1,462		2,584
Total income tax expense	$	12,683		$	11,446	$	13,437

Deferred Income Tax Assets and Liabilities with Temporary Differences and Carryforwards

Temporary differences and carryforwards which have given rise to deferred income tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands):

	2013		2012
Deferred tax assets:
Benefit plans	$	1,590	$	1,099
Inventories		525		536
Other		37		38
Total deferred tax assets	$	2,152	$	1,673
Deferred tax liabilities:
Property, plant and equipment	$	9,716	$	10,299
Patents and goodwill		2,956		2,972
Other		166		11
Total deferred tax liabilities	$	12,838	$	13,282
Net deferred tax liability	$	10,686	$	11,609
Balance Sheet classification:
Non-current deferred income tax liability	$	12,062	$	12,232
Current deferred income tax asset		1,376		623
Net deferred tax liability	$	10,686	$	11,609

Illustration of Total Income Tax Expense Difference with Amount Provided by Applying Statutory Federal Income Tax Rate to Pretax Earnings

Total income tax expense differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below (in thousands):

	Year ended December 31,
	2013			2012			2011
Income tax expense at the statutory federal income tax rate	$	13,743		$	12,276		$	13,816
Increase (decrease) resulting from:
State income taxes		770			747			710
Section 199 manufacturing deduction		(1,307	)		(949	)		(996	)
Other, net		(523	)		(628	)		(93	)
Total income tax expense	$	12,683		$	11,446		$	13,437

Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits as required by ASC 740 is as follows (in thousands):

Gross unrecognized tax benefits at January 1, 2011	$	1,420
Decreases in tax positions for prior years		(77	)
Increases in tax positions for current year		134
Lapse in statutes of limitation		(216	)
Gross unrecognized tax benefits at December 31, 2011	$	1,261
Increase in tax positions for prior years		19
Increase in tax positions for current year		0
Decrease due to settlement with taxing authorities		(641	)
Lapse in statutes of limitation		(98	)
Gross unrecognized tax benefits at December 31, 2012	$	541
Increase in tax positions for prior years		11
Increase in tax positions for current year		0
Lapse in statutes of limitation		(206	)
Gross unrecognized tax benefits at December 31, 2013	$	346