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Income Taxes: | 12 Months Ended
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Dec. 31, 2012
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Income Taxes Income from continuing operations before taxes for the years ended December 31, 2012, 2011 and 2010 is as follows:
|  | 2012 |  | 2011 |  | 2010
United States |  | $ | 62,204 |  |  | $ | 63,575 |  |  | $ | 46,669 |
Foreign |  | (365 | ) |  | 2,847 |  |  | 1,116 |
|  | $ | 61,839 |  |  | $ | 66,422 |  |  | $ | 47,785 |
The provision (benefit) for income taxes for the years ended December 31, 2012, 2011 and 2010 is as follows:
|  | 2012 |  | 2011 |  | 2010
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 21,072 |  |  | $ | 19,246 |  |  | $ | 15,331 |
State |  | 2,080 |  |  | 1,246 |  |  | 1,200 |
Foreign |  | 678 |  |  | 785 |  |  | 1,109 |
|  | 23,830 |  |  | 21,277 |  |  | 17,640 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | $ | (2,276 | ) |  | $ | 169 |  |  | $ | (781 | )
State |  | (796 | ) |  | 326 |  |  | 439 |
Foreign |  | (200 | ) |  | (19 | ) |  | 564 |
|  | (3,272 | ) |  | 476 |  |  | 222 |
|  | $ | 20,558 |  |  | $ | 21,753 |  |  | $ | 17,862 |
Current income taxes payable were reduced from the amounts in the above table by $4.6 million, $4.3 million and $1.7 million in 2012, 2011 and 2010, respectively, equal to the direct tax benefit that we receive upon exercise of stock options by employees and directors. That benefit is allocated to stockholders’ equity. We have accrued for tax contingencies for potential tax assessments, and in 2012 we recognized a $0.7 million net decrease of accruals most of which relates to various federal, state and foreign tax reserves. Reconciliations of the provision for income taxes at the statutory rate to our effective tax rate for the years ended December 31, 2012, 2011 and 2010 are as follows:
|  | 2012 |  | 2011 |  | 2010
|  | Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
Federal tax at the expected statutory rate |  | $ | 21,644 |  |  | 35.0 | % |  | $ | 23,247 |  |  | 35.0 | % |  | $ | 16,724 |  |  | 35.0 | %
State income tax, net of federal effect |  | 1,356 |  |  | 2.2 | % |  | 1,460 |  |  | 2.2 | % |  | 1,007 |  |  | 2.1 | %
Tax credits |  | (1,465 | ) |  | (2.4 | )% |  | (1,171 | ) |  | (1.8 | )% |  | (121 | ) |  | (0.3 | )%
Tax-exempt interest and dividends |  | (23 | ) |  | (0.1 | )% |  | (45 | ) |  | (0.1 | )% |  | (33 | ) |  | (0.1 | )%
Domestic production activities/other |  | (1,559 | ) |  | (2.5 | )% |  | (1,508 | ) |  | (2.3 | )% |  | (997 | ) |  | (2.0 | )%
Foreign income tax |  | 605 |  |  | 1.0 | % |  | (230 | ) |  | (0.3 | )% |  | 1,282 |  |  | 2.7 | %
|  | $ | 20,558 |  |  | 33.2 | % |  | $ | 21,753 |  |  | 32.7 | % |  | $ | 17,862 |  |  | 37.4 | %
Tax credits in 2012, 2011 and 2010 consist principally of research and developmental tax credits. The indirect effect of non-statutory stock options exercised on research and development tax credits and other tax credits were recorded as reductions of the effective tax provision. The components of our deferred income tax provision for the years ended December 31, 2012, 2011 and 2010 are as follows:
|  | 2012 |  | 2011 |  | 2010
Allowance for doubtful accounts |  | $ | (59 | ) |  | $ | (24 | ) |  | $ | (66 | )
Inventory reserves |  | 143 |  |  | 1,147 |  |  | (1,137 | )
Accruals |  | (2,375 | ) |  | (464 | ) |  | (1,792 | )
State income taxes |  | 177 |  |  | (7 | ) |  | (290 | )
Acquired future tax deductions |  | 50 |  |  | 293 |  |  | 300 |
Depreciation and amortization |  | (700 | ) |  | (205 | ) |  | 2,820 |
Tax credits |  | (508 | ) |  | (264 | ) |  | 387 |
|  | $ | (3,272 | ) |  | $ | 476 |  |  | $ | 222 |
The components of our deferred income tax assets (liabilities) at December 31, 2012 and 2011 are as follows:
|  | 2012 |  | 2011
Current deferred tax assets: |  |  |  |  |  |
State income taxes |  | $ | 437 |  |  | $ | 343 |
Foreign |  | 400 |  |  | 429 |
Accruals/other |  | 1,881 |  |  | 1,377 |
Tax credits |  | 441 |  |  | 452 |
Allowance for doubtful accounts |  | 101 |  |  | 102 |
Inventory reserves |  | 1,247 |  |  | 1,378 |
Current deferred tax asset before valuation allowance |  | $ | 4,507 |  |  | $ | 4,081 |
Valuation allowance |  | (214 | ) |  | — |
|  | 4,293 |  |  | 4,081 |
Non-current deferred tax asset: |  |  |  |  |  |
Foreign |  | $ | 983 |  |  | $ | 526 |
Accruals/other |  | 536 |  |  | 347 |
Depreciation and amortization |  | (458 | ) |  | (523 | )
Tax credits state |  | 4,927 |  |  | 4,409 |
Non-current deferred tax asset before valuation allowance |  | $ | 5,988 |  |  | $ | 4,759 |
Valuation allowance |  | $ | (346 | ) |  | $ | — |
|  | $ | 5,642 |  |  | $ | 4,759 |
Non-current deferred tax liability: |  |  |  |  |  |
State income taxes |  | $ | (1,751 | ) |  | $ | (1,481 | )
Foreign |  | (2,301 | ) |  | (2,633 | )
Accruals/other |  | (186 | ) |  | (186 | )
Depreciation and amortization |  | (6,429 | ) |  | (6,862 | )
Acquired future tax deductions |  | (515 | ) |  | (460 | )
Stock-based compensation |  | 5,581 |  |  | 3,843 |
Foreign currency translation adjustments |  | 354 |  |  | 635 |
|  | $ | (5,247 | ) |  | $ | (7,144 | )
Acquired future tax deductions are the tax benefits included in our consolidated income tax returns originating in Bio-Plexus, Inc., an entity purchased in 2002, prior to when we acquired the entity. They consist of: (a) the net tax benefit of items expensed for financial statement purposes but capitalized and amortized for tax purposes and (b) the tax benefited portion of Bio-Plexus’s NOL carry-forward which will be realized in approximately equal amounts over the next 11 years. Under Section 382 of the Internal Revenue Code, certain ownership changes limit the utilization of the NOL carry-forwards, and the amount of Bio-Plexus federal NOL carry-forwards recorded is the net federal benefit available. We have tax credits that we expect to utilize in future periods that may be carried forward indefinitely. Our Mexican subsidiary has a deferred tax liability of $2.3 million at December 31, 2012, as a result of tax legislation enacted in 2008. Foreign currency translation adjustments, and related tax effects, are an element of “other comprehensive income” and are not included in net income. The realization of deferred tax assets is dependent on generating sufficient foreign taxable income in the years that the temporary difference becomes deductible. A valuation allowance related to a foreign tax loss carry-forward has been provided for the portion of the deferred tax assets that we determined is more likely than not to remain unrealized based on estimated future taxable income and tax planning strategies. A valuation allowance of $0.6 million was recorded against its gross deferred tax asset balance as of December 31, 2012. For the year ended December 31, 2012, we recorded a net valuation allowance increase of $0.6 million, on the basis of management's reassessment of the amount of its deferred tax assets that are more likely than not to be realized. Our estimate of undistributed earnings of our foreign subsidiaries for which no federal or state liability has been recorded cumulatively totaled $13.5 million at December 31, 2012 and $14.0 million at December 31, 2011. These undistributed earnings are considered to be indefinitely reinvested. However, if unanticipated distribution of those earnings were to occur in the form of dividends or otherwise, some portion of the distribution would be subject to both foreign withholding taxes and U.S. income taxes. In the event that our position in this regard changes, determining the potential amount of unrecognized deferred federal and state income tax liability and foreign withholding taxes is not practicable because of the complexities associated with its hypothetical calculation. However, unrecognized foreign tax credits would be available to reduce some portion of the federal liability. We are subject to taxation in the United States and various states and foreign jurisdictions. Our United States federal income tax returns for tax years since 2010 are subject to examination by the Internal Revenue Service. Our principal state income tax returns for tax years since 2004 are subject to examination by the state tax authorities. The total gross amount of unrecognized tax benefits as of December 31, 2012 was $4.2 million that, if recognized, would impact the effective tax rate. We do not anticipate that unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. The following table summarizes our cumulative gross unrecognized tax benefits for 2012, 2011 and 2010 :
|  | 2012 |  | 2011 |  | 2010
Beginning balance |  | $ | 4,978 |  |  | $ | 4,411 |  |  | $ | 5,306 |
Increases (decreases) to prior year tax positions |  | 156 |  |  | 494 |  |  | (649 | )
Increases to current year tax positions |  | 490 |  |  | 764 |  |  | 518 |
Decrease related to settlements |  | (230 | ) |  | (392 | ) |  | (764 | )
Decrease related to lapse of statute of limitations |  | (1,158 | ) |  | (299 | ) |  | — |
Ending balance |  | $ | 4,236 |  |  | $ | 4,978 |  |  | $ | 4,411 |

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- 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
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