Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consists of the following:

 

(In thousands)    2013     2012     2011  

Current

      

US Federal

   $ 10,904      $ 11,173      $ 6,840   

State

     682        78        114   

Foreign

     81        2        47   

Deferred

     (722     (1,544     423   
  

 

 

   

 

 

   

 

 

 
   $ 10,945      $ 9,709      $ 7,424   
  

 

 

   

 

 

   

 

 

 

Effective Tax Rates Differ from Statutory Federal Income Tax Rate

The effective tax rates differ from the statutory federal income tax rate as follows:

 

     2013     2012     2011  

Statutory Federal Income Tax Rate

     35.0     35.0     35.0

Permanent Items

      

Non-deductible Stock Compensation Expense

     1.0     1.1     1.0

Domestic Production Activity Deduction

     (3.0 )%      (3.0 )%      (2.9 )% 

Non-deductible Acquisition Costs

     1.0     —       —  

Other

     —       0.1     (0.2 )% 

Foreign Tax Benefits

     (0.3 )%      (1.2 )%      (1.0 )% 

State Income Tax (Benefits), Net of Federal Income Tax Effect

     (0.1 )%      (0.1 )%      1.4

Research and Development Tax Credits

     (5.0 )%      (1.1 )%      (6.1 )% 

Other

     —       (0.1 )%      (1.6 )% 
  

 

 

   

 

 

   

 

 

 

Effective Tax Rate

     28.6     30.7     25.6
  

 

 

   

 

 

   

 

 

 

Significant Components of Company's Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, are as follows:

 

     2013     2012  
(In thousands)             

Deferred Tax Assets:

    

Goodwill and Intangible Assets

   $ 3,367      $ 6,918   

Asset Reserves

     5,780        4,901   

Deferred Compensation

     6,564        6,656   

State Investment Tax Credit Carryforwards, Net of Federal Tax

     665        665   

Customer Advanced Payments and Deferred Revenue

     956        1,113   

State Net Operating Loss Carryforwards and Other

     2,639        729   
  

 

 

   

 

 

 

Total Gross Deferred Tax Assets

     19,971        20,982   

Valuation Allowance for State and Foreign Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax

     (2,509     (2,190
  

 

 

   

 

 

 

Deferred Tax Assets

     17,462        18,792   
  

 

 

   

 

 

 

Deferred Tax Liabilities:

    

Depreciation

     7,164        4,806   

Intangible Assets

     27,742        —     

Other

     2,465        —     
  

 

 

   

 

 

 

Deferred Tax Liabilities

     37,371        4,806   
  

 

 

   

 

 

 

Net Deferred Tax Asset (Liabilities)

   $ (19,909   $ 13,986   
  

 

 

   

 

 

Components of Net Deferred Tax Assets and Liabilities

The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31:

 

(In thousands)    2013     2012  

Deferred Tax Asset — Current

   $ 5,291      $ 4,967   

Deferred Tax Asset — Long-term

     —          9,019   

Deferred Tax Liabilities — Current

     (970     —     

Deferred Tax Liabilities — Long-term

     (24,230     —     
  

 

 

   

 

 

 

Net Deferred Tax Liability

   $ (19,909   $ 13,986   
  

 

 

   

 

 

Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties

A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties which are insignificant, is as follows:

 

(in thousands)    2013      2012     2011  

Balance at Beginning of the Year

   $ 840       $ 880      $ 1,470   

Increases (Decreases) as a Result of Tax Positions Taken in Prior Years

     145         (220     (1,090

Increases as a Result of Tax Positions Taken in the Current Year

     955         180        500   
  

 

 

    

 

 

   

 

 

 

Balance at End of the Year

   $ 1,940       $ 840      $ 880