XML 46 R11.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Tax Disclosure [Abstract] |
Income Taxes |
| INCOME TAXES
The Company follows the provisions of the Financial Accounting Standards Codification 740 (“ASC 740”), “Accounting for Uncertainty in Income Taxes.” A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2012 |  | 2011 |  | 2010
Beginning of year | $ | 2,476,000 |  |  | $ | 2,483,000 |  |  | $ | 2,411,000 |
Additions based on tax positions related to the current year | 785,000 |  |  | 1,105,000 |  |  | 900,000 |
Additions for tax positions in prior years | 907,000 |  |  | 208,000 |  |  | 76,000 |
Reductions for tax positions in prior years | — |  |  | (78,000 | ) |  | (35,000 | )
Reductions as a result of completed audit examinations | — |  |  | (1,242,000 | ) |  | — |
Reductions as a result of a lapse of the applicable statute of limitations | — |  |  | — |  |  | (869,000 | )
End of year | $ | 4,168,000 |  |  | $ | 2,476,000 |  |  | $ | 2,483,000 |
If recognized, unrecognized tax benefits would affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits through the provision for income taxes. The Company has accrued approximately $250,000 and $95,000 for interest as of December 31, 2012 and 2011, respectively. Interest recorded during 2012, 2011 and 2010 was not considered significant. During 2011, the Company completed a routine audit examination with the Internal Revenue Service for tax years prior to 2010. As a result, unrecognized federal tax benefits pertaining to audited tax years prior to 2010 were reversed as of December 31, 2011. The Company is also subject to other periodic and routine audits in both domestic and foreign tax jurisdictions, and it is reasonably possible that the amounts of unrecognized tax benefits could change as a result of an audit. Based on the current audits in process, the payment of taxes as a result of audit settlements and the completion of tax examinations are not expected to have a significant impact on the Company’s financial position or results of operations. For the majority of tax jurisdictions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2008. In May 2011, the State of Michigan enacted a new Corporate Income Tax that was effective January 1, 2012. The new Corporate Income Tax does not have a significant effect on the Company’s consolidated financial position or results of operations. In January 2013, the American Taxpayer Relief Act of 2012 was signed into law and reinstated retroactively to January 1, 2012 various tax provisions known as tax "extenders" that had expired as of December 31, 2011. In accordance with ASC 740-45-15, the effects of changes in tax rates and laws on deferred tax balances and tax rates are recognized in the period the new legislation is enacted. As a result, the impact of the new legislation will be reflected in the Company's consolidated financial position and results of operations in calendar year 2013. The provision for income taxes is based on the earnings reported in the accompanying consolidated financial statements. The Company recognizes deferred income tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred income tax liabilities and assets are determined based on the cumulative temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates. Deferred income tax expense is measured by the net change in deferred income tax assets and liabilities during the year. The foreign components of income before the provision for income taxes were not material as of December 31, 2012. As a result, the domestic and foreign components of income before the provision for income taxes are not detailed in the income tax footnote. The components of the provision for income taxes are as follows:
| 2012 |  | 2011 |  | 2010
Currently payable: |  |  |  |  |
Federal | $ | 76,507,760 |  |  | $ | 63,307,583 |  |  | $ | 54,032,045 |
State | 2,450,000 |  |  | 1,663,000 |  |  | 789,000 |
Foreign | 1,238,000 |  |  | 850,000 |  |  | 494,000 |
Total | 80,195,760 |  |  | 65,820,583 |  |  | 55,315,045 |
Net deferred: |  |  |  |  |
Primarily federal | 843,000 |  |  | 13,943,000 |  |  | 10,391,000 |
Provision for income taxes | $ | 81,038,760 |  |  | $ | 79,763,583 |  |  | $ | 65,706,045 |
The currently payable provision is further reduced by the tax benefits associated with the exercise, vesting or disposition of stock under the stock plans described in Note 5. These reductions totaled approximately $1,457,000, $7,879,000 and $7,832,000 in 2012, 2011 and 2010, respectively, and were recognized as an adjustment of additional paid-in capital. The effective income tax rates are different from the statutory federal income tax rates for the following reasons:
| 2012 |  | 2011 |  | 2010
Statutory federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal income tax benefit | 0.6 |  |  | 0.1 |  |  | 0.2 |
Domestic production exclusion | (2.9 | ) |  | (2.3 | ) |  | (2.5 | )
Other | (0.2 | ) |  | (0.2 | ) |  | (0.4 | )
Effective income tax rate | 32.5 | % |  | 32.6 | % |  | 32.3 | %
The tax effect of temporary differences which give rise to deferred income tax assets and liabilities at December 31, 2012 and 2011, are as follows:
| 2012 |  | 2011
| Current |  | Non-Current |  | Current |  | Non-Current
Assets: |  |  |  |  |  |  |
Accruals not currently deductible | $ | 3,721,183 |  |  | $ | 186,997 |  |  | $ | 2,465,349 |  |  | $ | 152,716 |
Stock based compensation | 12,044,953 |  |  | 1,696,966 |  |  | 8,730,729 |  |  | 1,473,236 |
Impairment loss on available-for-sale securities | — |  |  | 327,308 |  |  | — |  |  | 471,401 |
Other | 5,690,130 |  |  | 3,609 |  |  | 4,874,704 |  |  | 3,809 |
Total deferred income tax assets | 21,456,266 |  |  | 2,214,880 |  |  | 16,070,782 |  |  | 2,101,162 |
Liabilities: |  |  |  |  |  |  |
Excess tax over book depreciation | — |  |  | (47,704,521 | ) |  | — |  |  | (41,681,342 | )
Patent costs | — |  |  | (8,137,111 | ) |  | — |  |  | (5,606,595 | )
Unrealized gain on investments | — |  |  | (3,146,585 | ) |  | — |  |  | (3,027,206 | )
Other | (527,417 | ) |  | — |  |  | (327,490 | ) |  | — |
Net deferred income taxes | $ | 20,928,849 |  |  | $ | (56,773,337 | ) |  | $ | 15,743,292 |  |  | $ | (48,213,981 | )
Income taxes paid in cash were approximately $63,351,000, $63,483,000 and $63,557,000 in 2012, 2011 and 2010, respectively. No provision has been made for U.S. Federal and State income taxes on foreign taxes that may result from remittances of undistributed earnings of foreign subsidiaries as of December 31, 2012. The Company expects such earnings will remain reinvested in those foreign subsidiaries indefinitely. Undistributed foreign earnings were not material as of December 31, 2012.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration