Note 6.  Income Taxes

Deferred tax attributes resulting from differences between financial and accounting amounts and tax basis of assets and liabilities at December 31, 2013 and 2012 are as follows:

The provision for income taxes is as follows:

The current year effective tax rate was primarily impacted by a change in the state of New Jersey’s apportionment rules which lowered our state rate compared with the prior year.

The reasons for the difference between total tax expense and the amount computed by applying the U.S. statutory federal income tax rate to income before income taxes are as follows:

The Company receives a tax deduction from the income realized by employees on the exercise of certain non-qualified stock options and restricted stock awards for which the tax effect of the difference between the book and tax deduction is recognized as a component of stockholders’ equity.

The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company has identified its federal consolidated tax return and its state tax return in New Jersey and its Canadian tax return as major tax jurisdictions. As of December 31, 2013 the Company’s Federal and Canadian tax returns remain open for examination for the years 2010 through 2013.The Company’s New Jersey tax returns are open for examination for the years 2009 through 2013. No liability or expense was recorded for interest or penalties related to uncertain tax positions at December 31, 2013 and 2012. The Company does not expect a significant increase or decrease in the amount of unrecognized tax positions in the next twelve months.

For financial reporting purposes, income before income taxes includes the following components: