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INCOME TAXES | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
INCOME TAXES |
| 6. | INCOME TAXES
In November 2015, the FASB amended the Income Taxes topic of the Accounting Standards Codification to simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. The Company has elected to early adopt this standard on a retrospective basis. The effect of this adoption was to present the Company’s deferred income tax accounts as a long-term deferred income tax liability on the consolidated balance sheets as of December 31, 2016 and a long-term deferred income tax asset on the consolidated balance sheets as of December 31, 2015. Income before income taxes includes the following components:
|  | 2016 |  |  | 2015 |  |  | 2014 |
United States |  | $ | 25,038 |  |  | $ | 19,850 |  |  | $ | 18,703 |
Foreign |  |  | 6,039 |  |  |  | 5,013 |  |  |  | 4,795 |
Total |  | $ | 31,077 |  |  | $ | 24,863 |  |  | $ | 23,498 |
The provision for income taxes on income consisted of the following in 2016, 2015 and 2014:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 5,016 |  |  | $ | 5,778 |  |  | $ | 5,953 |
State |  |  | 955 |  |  |  | 913 |  |  |  | 707 |
Foreign |  |  | 1,965 |  |  |  | 1,623 |  |  |  | 1,853 |
|  |  | 7,936 |  |  |  | 8,314 |  |  |  | 8,513 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 3,057 |  |  |  | 548 |  |  |  | 283 |
State |  |  | 205 |  |  |  | 47 |  |  |  | 32 |
Foreign |  |  | (43 | ) |  |  | (22 | ) |  |  | (168 | )
|  |  | 3,219 |  |  |  | 573 |  |  |  | 147 |
|  | $ | 11,155 |  |  | $ | 8,887 |  |  | $ | 8,660 |
The principal differences between the federal statutory tax rate and the income tax expense in 2016, 2015 and 2014:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Federal statutory tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State taxes, net of federal tax benefit |  |  | 3.8 | % |  |  | 3.0 | % |  |  | 3.7 | %
Excess of (decreases in) foreign tax over US tax on foreign income |  |  | (0.5 | )% |  |  | (1.1 | )% |  |  | 0.1 | %
Domestic tax credits |  |  | (2.7 | )% |  |  | (1.2 | )% |  |  | (1.4 | )%
Other |  |  | 0.2 | % |  |  | — |  |  |  | (0.5 | )%
Effective tax rate |  |  | 35.8 | % |  |  | 35.7 | % |  |  | 36.9 | %
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. 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, 2016 and 2015 are as follows:
|  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 58 |  |  | $ | 78 |
Accruals and reserves |  |  | 2,552 |  |  |  | 3,468 |
Other |  |  | 222 |  |  |  | 179 |
Total deferred tax assets |  |  | 2,832 |  |  |  | 3,725 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant, and equipment |  |  | 3,610 |  |  |  | 2,499 |
Investments in foreign subsidiaries |  |  | 1,215 |  |  |  | — |
Total deferred tax liabilities |  |  | 4,825 |  |  |  | 2,499 |
Net deferred tax asset/(liability) |  | $ | (1,993 | ) |  | $ | 1,226 |
The Company's foreign subsidiaries' have undistributed earnings of approximately $40,479 at December 31, 2016. Of this amount, $11,479 have been and continue to be considered to be indefinitely reinvested outside the United States. During 2016, the Company changed its indefinite reinvestment assertion with respect to $29,000 of foreign earnings based on anticipated changes in U.S. tax policies and an evaluation of its anticipated U.S. and foreign capital requirements and cash positions. The Company recorded a deferred tax liability of approximately $1,215 related to the U.S. federal and state income taxes and foreign withholding taxes on these foreign earnings. Should the Company decide to repatriate these foreign earnings, the actual tax impact would depend on its tax positions at the time of repatriation and could be significantly different from this estimate. The Company estimates the deferred tax liability arising from temporary differences related to undistributed earnings which are considered to be indefinitely reinvested outside the U.S. is approximately $487 at December 31, 2016. As of December 31, 2016, the Company has no federal or state net operating loss carryforwards. As of December 31, 2016 the Company had approximately $1,037 of unrecognized tax benefits recorded as liabilities, and we are uncertain about if or when such amounts may be settled. Related to the unrecognized tax benefits, the Company has also recorded a liability for potential penalties of $198 and interest of $19. A summary of the activity of the unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014, is presented below:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Unrecognized tax benefits – January 1 |  |  | 792 |  |  |  | 526 |  |  |  | 344 |
Gross increases – tax positions in prior period |  |  | 245 |  |  |  | 266 |  |  |  | 182 |
Unrecognized tax benefits – December 31 |  | $ | 1,037 |  |  | $ | 792 |  |  | $ | 526 |
The tax benefits identified in the chart above would affect our effective tax rate if recognized. The Company is subject to United States federal income taxes, as well as income taxes in various states and foreign jurisdictions. The Company’s 2015 and later tax years remain open to examination by the tax authorities. With few exceptions, as of December 31, 2016, the Company is no longer subject to U.S. federal, state or non-U.S. income tax examinations prior to 2013.

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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 Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 Reference 4: 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=65882285&loc=d3e32639-109319 Reference 5: 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=65882285&loc=d3e32537-109319 + Details
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