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INCOME TAXES | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
INCOME TAXES | 10. INCOME TAXES The components of the income tax expense (benefit) are as follows:
|  | 2013 |  | 2012 |  | 2011 |
Current |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 11,308,000 |  | $ | 9,787,000 |  | $ | 2,347,000 |
State |  |  | (202,000) |  |  | 132,000 |  |  | 777,000 |
Total Current |  |  | 11,106,000 |  |  | 9,919,000 |  |  | 3,124,000 |
Deferred |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (863,000) |  | $ | (1,210,000) |  | $ | 5,446,000 |
State |  |  | (25,000) |  |  | (127,000) |  |  | 569,000 |
Total Deferred |  |  | (888,000) |  |  | (1,337,000) |  |  | 6,015,000 |
Total Income Tax Expense |  | $ | 10,218,000 |  | $ | 8,582,000 |  | $ | 9,139,000 |
Deferred tax assets (liabilities) consisted of the following at December 31,
|  | 2013 |  | 2012 |  | 2011 |
Deferred compensation |  |  | - |  |  | - |  |  | 301,000 |
Reserves on inventory and sales |  |  | 332,000 |  |  | 336,000 |  |  | 242,000 |
Credit and loss carryforwards |  |  | 413,000 |  |  | 692,000 |  |  | 545,000 |
Stock compensation |  |  | 896,000 |  |  | - |  |  | - |
Accrued expenses and deferred costs |  |  | 1,260,000 |  |  | 690,000 |  |  | 516,000 |
Inventory capitalization |  |  | 337,000 |  |  | 526,000 |  |  | 555,000 |
Sales tax accrual |  |  | 337,000 |  |  | 1,228,000 |  |  | - |
Total deferred tax assets |  |  | 3,575,000 |  |  | 3,472,000 |  |  | 2,159,000 |
Unrealized gain/loss on investments |  |  | (476,000) |  |  | (333,000) |  |  | (250,000) |
Prepaid expenses |  |  | (710,000) |  |  | (752,000) |  |  | (426,000) |
Depreciation |  |  | (7,091,000) |  |  | (7,729,000) |  |  | (8,075,000) |
Stock compensation |  |  | - |  |  | (105,000) |  |  | (109,000) |
Total deferred tax liabilities |  |  | (8,277,000) |  |  | (8,919,000) |  |  | (8,860,000) |
Net deferred tax liabilities |  | $ | (4,702,000) |  | $ | (5,447,000) |  | $ | (6,701,000) |
The differences between the United States federal statutory tax rate and the Company's effective tax rate are as follows:
|  | 2013 |  |  | 2012 |  |  |  | 2011 |
Statutory federal tax |  | $ | 11,965,000 |  |  |  | 35.0 | % |  | $ | 8,559,000 |  |  |  | 35.0 | % |  | $ | 9,688,000 |  |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 304,000 |  |  |  | 0.9 | % |  |  | 679,000 |  |  |  | 2.8 | % |  |  | 1,015,000 |  |  |  | 3.7 | %
Domestic manufacturer deduction |  |  | (979,000) |  |  |  | -2.9 | % |  |  | (902,000) |  |  |  | -3.7 | % |  |  | (248,000) |  |  |  | -0.9 | %
FTC settlement |  |  | - |  |  |  | 0.0 | % |  |  | 1,389,000 |  |  |  | 5.7 | % |  |  | - |  |  |  |  |
Other permanent differences |  |  | 173,000 |  |  |  | 0.5 | % |  |  | (190,000) |  |  |  | -0.8 | % |  |  | 71,000 |  |  |  | 0.3 | %
Research and development and jobs credits |  |  | (459,000) |  |  |  | -1.3 | % |  |  | (267,000) |  |  |  | -1.1 | % |  |  | (336,000) |  |  |  | -1.2 | %
Other state income tax benefits |  |  | (707,000) |  |  |  | -2.1 | % |  |  | (686,000) |  |  |  | -2.8 | % |  |  | (1,051,000) |  |  |  | -3.9 | %
Other |  |  | (79,000) |  |  |  | -0.2 | % |  |  | - |  |  |  |  |  |  |  | - |  |  |  |  |
|  | $ | 10,218,000 |  |  |  | 29.9 | % |  | $ | 8,582,000 |  |  |  | 35.1 | % |  | $ | 9,139,000 |  |  |  | 33.0 | %
The 2013, 2012 and 2011 effective tax rates were impacted by the Company’s extensive state income tax planning. This planning includes taking advantage of Maryland’s apportionment methodology. As a manufacturing entity based in Maryland, the Company utilizes the single sales factor apportionment method in addition to claiming new state jobs credits and research & development credits. These benefits were offset in 2012 by a $3.7 million FTC nondeductible settlement. In addition, in 2013 the Company benefited from research and development credits effective January 1, 2013, applicable retroactively to 2012 activity. The Company has federal capital loss carry forwards of approximately $79,000 that can be carried forward for five years and will expire in 2016 through 2017. Separate company state net operating loss carry forwards totaling $2.2 million start expiring in 2027. Maryland state credits carry forwards totaling $237,000 and a Pennsylvania credit carry forward totaling $29,000 will expire in 2017.

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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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