INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Provision for income tax benefit from continuing operations

The provision for income taxes (credit) for the years ended December 31, 2012, 2011 and 2010 consists of the following:

(thousands)	2012			2011			2010
Current:
Federal	$	211		$	(235	)	$	(148	)
State		134			54			50
Total current		345			(181	)		(98	)
Deferred:
Federal		(6,320	)		18			17
State		(848	)		-			-
Total deferred		(7,168	)		18			17
Income tax credit	$	(6,823	)	$	(163	)	$	(81	)

Reconciliation of the differences related to continuing operations

A reconciliation of the differences between the actual provision (credit) for income taxes and the tax provisions for income taxes at the federal statutory income tax rate for each of the years ended December 31, 2012, 2011 and 2010 is as follows:

(thousands)	2012			2011			2010
Tax provision, at federal statutory income tax rate	$	7,232		$	2,824		$	389
State taxes, net of federal benefit		1,101			54			50
Deferred tax valuation allowance		(15,570	)		(3,048	)		(311	)
Other		414			7			(209	)
Income tax credit	$	(6,823	)	$	(163	)	$	(81	)

Composition of the deferred tax assets and liabilities

The composition of the deferred tax assets and liabilities is as follows:

(thousands)	As of December 31	2012			2011
Gross deferred tax assets:
Trade receivables allowance		$	107		$	302
Inventory capitalization			291			152
Accrued expenses			2,081			1,479
Deferred compensation			964			993
Non-compete agreements			6			23
Inventory reserves			428			259
AMT and other tax credit carry-forwards			896			456
Federal and State NOL carry-forwards			2,390			7,987
Share-based compensation			287			299
Depreciation expense			-			937
Pension liability			30			103
Intangibles			1,212			2,663
Valuation allowance			-			(15,570	)
Gross deferred tax assets			8,692			83
Gross deferred tax liabilities:
Indefinite-lived intangible assets			-			(1,344	)
Prepaid expenses			(141	)		(76	)
Share-based compensation			-			(7	)
Depreciation expense			(2,726	)		-
Gross deferred tax liabilities			(2,867	)		(1,427	)
Net deferred tax assets (liabilities)		$	5,825		$	(1,344	)

The deferred tax amounts above have been reflected on the consolidated statements of financial position as of December 31, 2012 and 2011 as follows:

(thousands)	2012		2011
Current and long-term deferred tax assets	$	5,825	$	-
Long-term deferred tax liabilities		-		(1,344	)
Deferred tax assets (liabilities), net	$	5,825	$	(1,344	)