INCOME TAXES

12 Months Ended

Dec. 31, 2012

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 2012, 2011 and 2010:

	2012			2011			2010
Current:
Federal	$	202		$	11,902		$	300
State		321			1,428			634
Foreign		1,798			1,584			641
		2,321			14,914			1,575
Deferred:
Federal		1,095			245			5,874
State		122			27			68
Foreign		(7	)		(66	)		66
		1,210			206			6,008
	$	3,531		$	15,120		$	7,583

The principal differences between the federal statutory tax rate and the income tax expense in 2012, 2011 and 2010:

	2012			2011			2010
Federal statutory tax rate		35.0	%		35.0	%		34.4	%
State taxes, net of federal tax benefit		4.0	%		4.0	%		2.8	%
Excess of foreign tax over US tax on foreign income		0.6	%		0.6	%		0.8	%
Domestic Tax Credits		(10.8	)%		--			--
Other		(0.9	)%		0.1	%		1.3	%
Effective tax rate		27.9	%		39.7	%		39.3	%

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, 2012 and 2011 are as follows:

	2012		2011
Deferred tax assets:
Allowance for doubtful accounts	$	95	$	53
Accruals and reserves		3,390		4,024
Other		96		1,067
Total deferred tax assets		3,581		5,144
Deferred tax liabilities:
Property, plant, and equipment		1,758		2,110
Total deferred tax liabilities		1,758		2,110
Net deferred tax asset	$	1,823	$	3,034

As of December 31, 2012, the Company has no federal or state net operating loss carryforwards.

At December 31, 2012 and 2011, 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 2009 through 2011 remain open to examination for U.S. Federal income taxes.  With few exceptions, the Company is no longer subject to state or non-U.S. income tax examinations prior to 2009.