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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Components of the provision for income taxes are as follows:
| 2011 |  | 2010
Current: |  |  |
Federal - US | $ | 4,793,000 |  |  | $ | 1,420,000 |
Federal - Foreign | 242,000 |  |  | 199,000 |
State and local | 117,000 |  |  | 47,000 |
| 5,152,000 |  |  | 1,666,000 |
Deferred: |  |  |
Federal | 566,000 |  |  | 972,000 |
State and local | 4,000 |  |  | 5,000 |
| 570,000 |  |  | 977,000 |
Provision for income taxes | $ | 5,722,000 |  |  | $ | 2,643,000 |
A reconciliation of the income tax provision based on the federal statutory income tax rate of 34% to the Company's income tax provision for the years ended December 31 is as follows:
| 2011 |  | 2010
Provision at federal statutory rate - US | $ | 5,525,000 |  |  | $ | 1,712,000 |
Effect of PPACA adjustment | — |  |  | 1,021,000 |
Effect of Mexican income tax penalties, interest and surcharges | 89,000 |  |  | — |
Effect of foreign taxes | 84,000 |  |  | (93,000 | )
Other | 24,000 |  |  | 3,000 |
Provision for income taxes | $ | 5,722,000 |  |  | $ | 2,643,000 |
In the first quarter of 2010, the Patient Protection and Affordable Care Act (“PPACA”) was signed into law. The PPACA changed the tax treatment related to an existing retiree drug subsidy (“RDS”) available to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under Medicare Part D. As a result of the PPACA, RDS payments will effectively become taxable in tax years beginning in 2013 by requiring the amount of the subsidy received to be offset against the Company’s deduction for health care expenses. Accordingly, during the first quarter of 2010, the Company recorded a one time charge to income tax expense of $1,021,000 related to the write down of its deferred tax asset for RDS. The Company's 2009 Mexican income tax return was under review by Mexican tax authorities at December 31, 2011. This review was closed in early 2012. As a result of the review, the Company incurred expense of approximately $89,000 in income tax penalties, interest and surcharges during 2011, all of which is included in income tax expense. Certain tax benefits related to incentive stock options recorded directly to additional paid in capital totaled $322,000 for the year ended December 31, 2011. The Company’s consolidated balance sheets at December 31, 2011 and December 31, 2010 include a net deferred tax asset of $2,888,000 and $3,911,000, respectively. During 2010, the Company reduced its deferred tax asset by approximately $3,413,000 as a result of remeasurement and partial settlement of the post retirement benefits liability and by approximately $1,021,000 in association with the PPACA as noted above. The reduction in deferred tax asset for the remeasurement and partial settlement was recorded as a component of other comprehensive income in 2010. The Company performs analyses to evaluate the balance of deferred tax assets that will be realized. Such analyses are based on the premise that the Company is, and will continue to be, a going concern and that it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Deferred tax assets consist of the following at December 31:
| 2011 |  | 2010
Current asset (liability): |  |  |
Accrued liabilities | $ | 687,000 |  |  | $ | 605,000 |
Accounts receivable | 545,000 |  |  | 292,000 |
Inventory | 704,000 |  |  | 568,000 |
Other, net | (93,000 | ) |  | (74,000 | )
Total current asset | 1,843,000 |  |  | 1,391,000 |
Non-current asset (liability): |  |  |
Property, plant, and equipment | (2,197,000 | ) |  | (1,460,000 | )
Post retirement benefits | 3,459,000 |  |  | 3,903,000 |
Interest rate swap | 112,000 |  |  | 119,000 |
Other, net | (329,000 | ) |  | (42,000 | )
Total non-current asset | 1,045,000 |  |  | 2,520,000 |
Total deferred tax asset - net | $ | 2,888,000 |  |  | $ | 3,911,000 |
At December 31, 2011, a provision has not been made for U.S. taxes on accumulated undistributed earnings of approximately $3,236,000 of the Company's Mexican subsidiary that would become payable upon repatriation to the United States. It is the intention of the Company to reinvest all such earnings in operations and facilities outside of the United States. At December 31, 2011 and 2010 the Company had no liability for unrecognized tax benefits under guidance relating to tax uncertainties. The Company does not anticipate that the unrecognized tax benefits will significantly change within the next twelve months. The Company files income tax returns in the U.S. federal jurisdiction, Mexico and various state jurisdictions. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for the years before 2008, and no longer subject to Mexican income tax examinations by Mexican authorities for the years before 2006.

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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 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: 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 Reference 6: 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 7: 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 8: 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 + Details
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