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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] |
13. | INCOME TAXES
The provision for income taxes included the following components at December 31, 2012, 2011 and 2010:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,985 |  |  | $ | 5,483 |  |  | $ | 5,228 |
State |  |  | 928 |  |  |  | 951 |  |  |  | 1,020 |
Foreign |  |  | 972 |  |  |  | 2,490 |  |  |  | 420 |
Total |  |  | 8,885 |  |  |  | 8,924 |  |  |  | 6,668 |
Deferred |  |  | 1,648 |  |  |  | (343 | ) |  |  | 503 |
Total provision |  | $ | 10,533 |  |  | $ | 8,581 |  |  | $ | 7,171 |
The differences between the U.S. federal statutory income tax rate and the Company’s effective tax rate were as follows for the years ended December 31, 2012, 2011 and 2010:
|  | 2012 |  |  | 2011 |  |  | 2010 |
U.S. federal statutory income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal tax benefit |  |  | 2.3 |  |  |  | 2.5 |  |  |  | 3.1 |
Non-taxable municipal bond interest |  |  | (1.9 | ) |  |  | (2.7 | ) |  |  | (3.2 | )
Foreign income tax rate differences |  |  | (2.2 | ) |  |  | (1.5 | ) |  |  | (0.6 | )
Other |  |  | 0.9 |  |  |  | 1.0 |  |  |  | (0.6 | )
Effective tax rate |  |  | 34.1 | % |  |  | 34.3 | % |  |  | 33.7 | %
The foreign component of pretax net earnings was $6.2 million, $5.3 million and $3.8 million for 2012, 2011 and 2010, respectively. As of December 31, 2012, the total amount of unremitted foreign earnings was $5.7 million. The repatriation of foreign earnings would not have a material impact on the Company’s financial statements. The components of deferred taxes as of December 31, 2012 and 2011 were as follows:
|  | 2012 |  |  | 2011 |
|  | (Dollars in thousands) |
Deferred tax benefits: |  |  |  |  |  |  |  |
Accounts receivable reserves |  | $ | 421 |  |  | $ | 507 |
Pension liability |  |  | 10,882 |  |  |  | 10,428 |
Accrued liabilities |  |  | 1,934 |  |  |  | 1,727 |
|  |  | 13,237 |  |  |  | 12,662 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Inventory and related reserves |  |  | (1,316 | ) |  |  | (964 | )
Cash value of life insurance |  |  | (3,029 | ) |  |  | (2,821 | )
Property, plant and equipment |  |  | (1,713 | ) |  |  | (1,516 | )
Intangible assets |  |  | (5,051 | ) |  |  | (2,827 | )
Prepaid and other assets |  |  | (268 | ) |  |  | (263 | )
Foreign currency gains on intercompany loans |  |  | (419 | ) |  |  | (448 | )
|  |  | (11,796 | ) |  |  | (8,839 | )
Net deferred income tax benefits |  | $ | 1,441 |  |  | $ | 3,823 |
The net deferred tax benefit is classified in the Consolidated Balance Sheets as follows:
|  | 2012 |  |  | 2011 |
|  | (Dollars in thousands) |
Current deferred income tax benefits |  | $ | 649 |  |  | $ | 395 |
Noncurrent deferred income tax benefits |  |  | 792 |  |  |  | 3,428 |
|  | $ | 1,441 |  |  | $ | 3,823 |
Uncertain Tax Positions The Company accounts for its uncertain tax positions in accordance with ASC 740, Income Taxes (“ASC 740”). ASC 740 provides that the tax effects from an uncertain tax position can be recognized in the Company’s consolidated financial statements only if the position is more likely than not of being sustained on audit, based on the technical merits of the position. The following table summarizes the activity related to the Company’s unrecognized tax benefits:
(Dollars in thousands) |  |  |
Balance at December 31, 2009 |  | $ | 449 |
Increases related to current year tax positions |  |  | 9 |
Expiration of the statute of limitations for the assessment of taxes |  |  | (23 | )
Favorable settlements of tax positions |  |  | (351 | )
Balance at December 31, 2010 |  | $ | 84 |
Expiration of the statute of limitations for the assessment of taxes |  |  | (84 | )
Balance at December 31, 2011 |  | $ | - |
Increases related to current year tax positions |  |  | 124 |
Balance at December 31, 2012 |  | $ | 124 |
The Company had unrecognized tax benefits of $124,000 at December 31, 2012. This amount, if recognized, would reduce the Company’s annual effective tax rate. Included in the Consolidated Balance Sheets at December 31, 2012 was a liability for potential interest related to these positions of $2,000. The Company had no unrecognized tax benefits as of December 31, 2011. The Company files a U.S. federal income tax return, various U.S. state income tax returns and several foreign returns. In general, the 2008 through 2012 tax years remain subject to examination by those taxing authorities.

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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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