INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES [Abstract]

Reconciliation of beginning and ending amount of liability for uncertain tax positions

A reconciliation of the beginning and ending amount of the liability for uncertain tax positions is as follows (dollars in thousands):

	2013			2012			2011
Liability for uncertain tax positions - January 1	$	2,711		$	4,132		$	3,835
Additions based on tax positions
related to the current year		28			1,221			297
Settlement/expiration of statutes of limitations		(550	)		(2,642	)		-
Liability for uncertain tax positions - December 31	$	2,189		$	2,711		$	4,132

Provision (benefit) for income taxes

The (benefit) provision for income taxes consists of the following (dollars in thousands):

	Years Ended December 31,
	2013			2012			2011
Current:
Federal	$	(1,099	)	$	(459	)	$	2,585
Foreign		1,120			241			478
State		113			76			362
		134			(142	)		3,425
Deferred:
Federal		(865	)		(807	)		599
State		65			(58	)		102
Foreign		(77	)		(369	)		(18	)
		(877	)		(1,234	)		683
	$	(743	)	$	(1,376	)	$	4,108

Reconciliation of taxes on income computed at the federal statutory rate

A reconciliation of taxes on income computed at the U.S. federal statutory rate to amounts provided is as follows (dollars in thousands):

	Years Ended December 31,
	2013					2012					2011
	$			%		$			%		$			%
Tax provision computed at the
federal statutory rate	$	5,309		35	%	$	339		34	%	$	2,676		34	%
Increase (decrease) in taxes resulting from:
Different tax rates and permanent differences
applicable to foreign operations		(4,677	)	(31	%)		(306	)	(31	%)		1,526		19	%
Increase in (reversal of) liability for uncertain
tax positions - net		(522	)	(3	%)		(1,421	)	(143	%)		297		4	%
Utilization of research and development, solar and foreign
tax credits		(1,049	)	(7	%)		-		0	%		(762	)	(10	%)
State taxes, net of federal benefit		117		1	%		-		0	%		341		4	%
Current year valuation allowance - U.S. segment		49		0	%		298		30	%		-		0	%
Permanent differences applicable to U.S. operations,
including qualified production activity credits,
SERP/COLI income, unrealized foreign exchange gains
and amortization of purchase accounting intangibles		(91	)	(1	%)		(260	)	(26	%)		44		1	%
Other		121		1	%		(26	)	(3	%)		(14	)	(0	%)
Tax (benefit) provision computed at the Company's
effective tax rate	$	(743	)	(5	%)	$	(1,376	)	(138	%)	$	4,108		52	%

Components of deferred income tax assets

Components of deferred income tax assets are as follows (dollars in thousands).

	December 31,
	2013			2012
	Tax Effect			Tax Effect
Deferred Tax Assets - current:
State tax credits	$	915		$	848
Reserves and accruals		2,020			1,334
Federal net operating loss carryforward		790			-
Other accruals		86			-
Valuation allowance		(816	)		(745	)
	$	2,995		$	1,437
Deferred Tax Assets - noncurrent:
Unfunded pension liability	$	668		$	1,150
Depreciation		(83	)		(426	)
Amortization		(4,065	)		(2,457	)
Federal, state and foreign net operating loss
and credit carryforwards		3,844			1,114
Restructuring expenses		-			319
Other accruals		2,455			2,438
Valuation allowances		(1,139	)		(1,129	)
	$	1,680		$	1,009