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INCOME TAXES | 12 Months Ended
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Jan. 03, 2015
INCOME TAXES [Abstract] |
INCOME TAXES | 8. Income Taxes Deferred income taxes are provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and those for income tax reporting purposes. Deferred income tax (assets) liabilities relate to:
|  | 2014 |  | 2013 |  | 2012 |
Property, plant and equipment |  | $ | 6,503,597 |  | $ | 6,184,873 |  | $ | 5,942,048 |
Other |  |  | 92,531 |  |  | 208,938 |  |  | — |
Total deferred income tax liabilities |  |  | 6,596,128 |  |  | 6,393,811 |  |  | 5,942,048 |
Other postretirement benefits |  |  | (1,030,203 | ) |  | (787,087 | ) |  | (885,729 | )
Inventories |  |  | (829,876 | ) |  | (848,364 | ) |  | (761,613 | )
Allowance for doubtful accounts |  |  | (105,296 | ) |  | (104,695 | ) |  | (104,903 | )
Intangible assets |  |  | (396,541 | ) |  | (373,482 | ) |  | (422,443 | )
Accrued compensation |  |  | (203,180 | ) |  | (158,866 | ) |  | (197,582 | )
Pensions |  |  | (9,275,949 | ) |  | (3,828,224 | ) |  | (7,128,057 | )
Other |  |  | — |  |  | — |  |  | (116,826 | )
Total deferred income tax assets |  |  | (11,841,045 | ) |  | (6,100,718 | ) |  | (9,617,153 | )
Net deferred income tax (assets) liabilities |  | $ | (5,244,917 | ) | $ | 293,093 |  | $ | (3,675,105 | )
Income before income taxes consists of:
|  | 2014 |  | 2013 |  | 2012 |
Domestic |  | $ | 8,087,552 |  | $ | 7,139,039 |  | $ | 8,614,664 |
Foreign |  |  | 3,441,211 |  |  | 2,974,856 |  |  | 4,609,854 |
|  | $ | 11,528,763 |  | $ | 10,113,895 |  | $ | 13,224,518 |
The provision for income taxes follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,339,917 |  |  | $ | 1,942,271 |  |  | $ | 1,909,172 |
Foreign |  |  | 991,257 |  |  |  | 871,949 |  |  |  | 1,367,025 |
State |  |  | 295,554 |  |  |  | 162,952 |  |  |  | 220,820 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 164,830 |  |  |  | 241,821 |  |  |  | 1,022,660 |
Foreign |  |  | — |  |  |  | — |  |  |  | — |
State |  |  | 75,729 |  |  |  | (7,019 | ) |  |  | 79,041 |
|  | $ | 3,867,287 |  |  | $ | 3,211,974 |  |  | $ | 4,598,718 |
A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations follows:
|  | 2014 | 2013 | 2012
|  | Amount |  | Percent | Amount |  | Percent | Amount |  | Percent
Income taxes using U.S. federal statutory rate |  | $ 3,919,779 |  | 34 | % | $ 3,438,724 |  | 34 | % | $ 4,496,336 |  | 34 | %
State income taxes, net of federal benefit |  | 249,324 |  | 2 |  | 99,245 |  | 1 |  | 188,490 |  | 2 |
Impact of foreign subsidiaries on effective tax rate |  | (76,914 | ) | (1 | ) | (103,878 | ) | (1 | ) | 136,590 |  | 1 |
Impact of manufacturers deduction on effective tax rate |  | (185,993 | ) | (1 | ) | (138,127 | ) | (1 | ) | (232,928 | ) | (2 | )
Other—net |  | (38,909 | ) | - |  | (83,990 | ) | (1 | ) | 10,230 |  | - |
|  | $ 3,867,287 |  | 34 | % | $ 3,211,974 |  | 32 | % | $ 4,598,718 |  | 35 | %
Total income taxes paid were $3,989,978 in 2014, $2,568,708 in 2013 and $3,350,283 in 2012. United States income taxes have been provided on the undistributed earnings of foreign subsidiaries ($13,656,236 at January 3, 2015) only where necessary because such earnings are intended to be reinvested abroad indefinitely or repatriated only when substantially free of such taxes. The Company would be required to accrue and pay United States income taxes to repatriate the funds held by foreign subsidiaries not otherwise provided. During 2014, 2013 and 2012, the Company received tax benefits of $8,882, $0 and $0, respectively, as a result of the exercise and sale of incentive stock options that resulted in the disqualification of those incentive stock options, and the exercise of non-qualified stock options during the year. The tax benefit associated with the exercise of the incentive and non-qualified stock options has been recorded to common stock. A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows:
|  | 2014 |  | 2013 |  | 2012 |
Balance at beginning of year |  | $ | 220,289 |  | $ | 499,624 |  | $ | 486,332 |
Increases for positions taken during the current period |  |  | 50,735 |  |  | 49,636 |  |  | 119,893 |
Decreases relating to settlements |  |  | — |  |  | (263,856 | ) |  | — |
Decreases resulting from the expiration of the statute of limitations |  |  | (22,379 | ) |  | (65,115 | ) |  | (106,601 | )
Balance at end of year |  | $ | 248,645 |  | $ | 220,289 |  | $ | 499,624 |
The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2011 and non-U.S. income tax examinations by tax authorities prior to 2008. Included in the balance at January 3, 2015, are $164,106 of unrecognized tax benefits that would affect the annual effective tax rate. In 2014, the Company recognized accrued interest related to unrecognized tax benefits in income tax expense. The Company had approximately $33,000 of accrued interest at January 3, 2015. The total amount of unrecognized tax benefits could increase or decrease within the next twelve months for a number of reasons, including the closure of federal, state and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under ASC 740. The Company believes that the total amount of unrecognized tax benefits will not increase or decrease significantly over the next twelve months.

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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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