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INCOME TAXES | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | ## 13. INCOME TAXES The provision for income taxes included the following components at December 31, 2013, 2012 and 2011:
|  | 2013 |  | 2012 |  | 2011
|  | (Dollars in thousands)
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,449 |  |  | $ | 6,985 |  |  | $ | 5,483 |
State |  |  | 940 |  |  |  | 928 |  |  |  | 951 |
Foreign |  |  | 1,273 |  |  |  | 972 |  |  |  | 2,490 |
Total |  |  | 8,662 |  |  |  | 8,885 |  |  |  | 8,924 |
Deferred |  |  | 1,268 |  |  |  | 1,648 |  |  |  | (343 | )
Total provision |  | $ | 9,930 |  |  | $ | 10,533 |  |  | $ | 8,581 |
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, 2013, 2012 and 2011:
|  | 2013 |  | 2012 |  | 2011
U.S. federal statutory income tax rate |  |  | 35.0% |  |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal tax benefit |  |  | 2.6 |  |  |  | 2.3 |  |  |  | 2.5 |
Non-taxable municipal bond interest |  |  | (1.7) |  |  |  | (1.9 | ) |  |  | (2.7 | )
Foreign income tax rate differences |  |  | (0.9) |  |  |  | (2.2 | ) |  |  | (1.5 | )
Other |  |  | 0.2 |  |  |  | 0.9 |  |  |  | 1.0 |
Effective tax rate |  |  | 35.2% |  |  |  | 34.1 | % |  |  | 34.3 | %
The foreign component of pretax net earnings was $4.2 million, $6.2 million and $5.3 million for 2013, 2012 and 2011, respectively. As of December 31, 2013, the total amount of unremitted foreign earnings was $6.2 million. A deferred tax liability has not been recorded on these unremitted earnings because the Company intends to permanently reinvest such earnings outside of the U.S. Future dividends, if any, would be paid only out of current year earnings in the year earned. If the remaining unremitted foreign earnings at December 31, 2013 were to be repatriated in the future, the related deferred tax liability would not have a material impact on the Company’s financial statements. The components of deferred taxes as of December 31, 2013 and 2012 were as follows:
|  | 2013 |  | 2012
|  | (Dollars in thousands)
Deferred tax benefits: |  |  |  |  |  |  |  |
Accounts receivable reserves |  | $ | 440 |  |  | $ | 421 |
Pension liability |  |  | 8,691 |  |  |  | 10,882 |
Accrued liabilities |  |  | 2,164 |  |  |  | 1,934 |
|  |  | 11,295 |  |  |  | 13,237 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Inventory and related reserves |  |  | (2,601) |  |  |  | (1,316 | )
Cash value of life insurance |  |  | (3,240) |  |  |  | (3,029 | )
Property, plant and equipment |  |  | (1,757) |  |  |  | (1,713 | )
Intangible assets |  |  | (5,948) |  |  |  | (5,051 | )
Prepaid and other assets |  |  | (264) |  |  |  | (268 | )
Foreign currency gains on intercompany loans |  |  | (327) |  |  |  | (419 | )
|  |  | (14,137) |  |  |  | (11,796 | )
Net deferred income tax benefits |  | $ | (2,842) |  |  | $ | 1,441 |
The net deferred tax (liabilities) benefits are classified in the Consolidated Balance Sheets as follows:
|  | 2013 |  | 2012
|  | (Dollars in thousands)
Current deferred income tax (liabilities) benefits |  | $ | (849) |  |  | $ | 649 |
Noncurrent deferred income tax (liabilities) benefits |  |  | (1,993) |  |  |  | 792 |
|  | $ | (2,842) |  |  | $ | 1,441 |
## 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, 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 |
Increases related to current year tax positions |  |  | — |
Balance at December 31, 2013 |  | $ | 124 |
The Company had unrecognized tax benefits of $124,000 at December 31, 2013. This amount, if recognized, would reduce the Company’s annual effective tax rate. Included in the Consolidated Balance Sheets at December 31, 2013 was a liability for potential interest related to these positions of $5,000. 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 2009 through 2013 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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 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=26873400&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 9 -URI http://asc.fasb.org/extlink&oid=6907707&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=6907707&loc=d3e32537-109319 Reference 6: 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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