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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | 7. Income Taxes The amounts of income tax expense (benefit) reflected in operations is as follows:
|  | 2015 |  | 2014
| Current: |  |  |  |  |  |  |  |  |
| Federal |  |  | $ | 1,304,253 |  |  | $ | 1,063,043 |
| State |  |  |  | 164,913 |  |  |  | 171,003 |
| Foreign |  |  |  | 553,259 |  |  |  | 572,660 |
|  |  |  |  | 2,022,425 |  |  |  | 1,806,706 |
| Deferred: |  |  |  |  |  |  |  |  |
| Federal |  |  |  | (196,476 | ) |  |  | 184,616 |
| State |  |  |  | (5,077 | ) |  |  | 22,398 |
|  |  |  |  | (201,553 | ) |  |  | 207,014 |
|  |  |  | $ | 1,820,872 |  |  | $ | 2,013,720 |
The current state tax provision was comprised of taxes on income, the minimum capital tax and other franchise taxes related to the jurisdictions in which the Company's facilities are located. A summary of United States and foreign income before income taxes follows:
|  | 2015 |  | 2014
United States |  | $ | 3,256,251 |  |  | $ | 3,877,541 |
Foreign |  |  | 3,358,146 |  |  |  | 2,925,184 |
|  | $ | 6,614,397 |  |  | $ | 6,802,725 |
As discussed in Note 10 below, for segment reporting, Direct Import sales are included in the United States segment. However, the revenues are earned by our Hong Kong subsidiary and related income taxes are paid in Hong Kong whose rate approximates 16.5%. As such, income of the Asian subsidiary is included in the foreign income before taxes.
|  | 2015 |  | 2014
Federal income |  |  |  |  |  |  |  |
taxes at |  |  |  |  |  |  |  |
34% statutory rate |  | $ | 1,878,464 |  |  | $ | 2,203,901 |
State and local |  |  |  |  |  |  |  |
taxes, net of |  |  |  |  |  |  |  |
federal income |  |  |  |  |  |  |  |
tax effect |  |  | 105,492 |  |  |  | 131,505 |
Permanent items |  |  | 328,075 |  |  |  | 11,693 |
Foreign tax rate difference |  |  | (601,269 | ) |  |  | (471,469 | )
Change in deferred income tax |  |  |  |  |  |  |  |
valuation allowance |  |  | 110,110 |  |  |  | 138,090 |
Provision for income taxes |  | $ | 1,820,872 |  |  | $ | 2,013,720 |
The following summarizes deferred income tax assets and liabilities:
|  | 2015 |  | 2014
Deferred income tax liabilities: |  |  |  |
Plant, property |  |  |  |
and equipment |  | $ | 536,759 |  |  | $ | 469,247 |
|  |  | 536,759 |  |  |  | 469,247 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Asset valuations |  |  | 677,994 |  |  |  | 608,905 |
Operating loss |  |  |  |  |  |  |  |
carryforwards and credits |  |  | 110,110 |  |  |  | 138,090 |
Pension |  |  | 189,920 |  |  |  | 166,625 |
Foreign tax credit |  |  | 186,504 |  |  |  | 28,049 |
Other |  |  | 753,219 |  |  |  | 734,993 |
|  |  | 1,917,747 |  |  |  | 1,676,662 |
Net deferred |  |  |  |  |  |  |  |
income tax asset before valuation allowance |  |  | 1,380,988 |  |  |  | 1,207,415 |
Valuation |  |  |  |  |  |  |  |
allowance |  |  | (110,110 | ) |  |  | (138,090 | )
Net deferred |  |  |  |  |  |  |  |
income tax asset |  | $ | 1,270,878 |  |  | $ | 1,069,325 |
In 2015, the Company evaluated its tax positions for years which remain subject to examination by major tax jurisdictions, in accordance with the requirements of ASC 740 and as a result concluded no adjustment was necessary. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s evaluation of uncertain tax positions was performed for the tax years ended December 31, 2013 and forward, the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2015. In accordance with the Company’s accounting policies, any interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. The Company provides deferred income taxes on foreign subsidiary earnings, which are not considered permanently reinvested. Earnings permanently reinvested would become taxable upon the sale or liquidation of a foreign subsidiary or upon the remittance of dividends. During 2015, the Company repatriated a total of $2.5 million of foreign earnings from its Hong Kong subsidiary. This repatriation was part of a two year plan which the Company started in 2014. During 2014, the Company repatriated a total of $11.8 million of foreign earnings, consisting of $10.5 million from its Hong Kong subsidiary and $1.3 million from its Canadian subsidiary. The repatriation related to the funding of the Company’s acquisition of certain assets of First Aid Only, Inc. U.S. income taxes on those repatriated earnings have been partially offset by foreign tax credits. The Company plans to repatriate future earnings of its Canadian subsidiary and will provide for U.S. income taxes accordingly. Foreign subsidiary earnings of $3,157,020 and $3,177,348 are considered permanently reinvested as of December 31, 2015 and 2014, respectively, and no deferred income taxes have been provided on these foreign earnings. These unremitted foreign earnings are related to the Hong Kong Subsidiary, and there is no unrecognized deferred income tax liability for these permanently reinvested earnings. Due to the uncertain nature of the realization of the Company's deferred income tax assets based on past performance of its German subsidiary and carry forward expiration dates, the Company has recorded a valuation allowance for the amount of deferred income tax assets which are not expected to be realized. This valuation allowance, all of which is related to deferred tax assets resulting from net operating losses of the Company’s German subsidiary, is subject to periodic review, and if the allowance is reduced, the tax benefit will be recorded in future operations as a reduction of the Company's tax expense.

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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=6907707&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=6907707&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=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 + Details
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