NOTES TO CONSOLIDATED FINANCIAL STATEMENTS   (CONTINUED)
INCOME TAXES
The items comprising income tax expense for continuing operations are as follows (in thousands):
YEAR ENDED DECEMBER 31,
2003 2002 2001
Current — Federal $ 914 $ 1,081 $ 1,520
— State 32 (44) 188
946 1,037 1,708
Deferred — Federal 912 327 74
— State 21 39 21
933 366 95
Total income tax expense $ 1,879 $ 1,403 $ 1,803
Temporary differences and carryforwards which have given rise to deferred income tax assets and liabilities as of December 31, 2003 and 2002 are as
follows (in thousands):
2003 2002
DEFERRED TAX ASSETS:
Patents and goodwill $ 654 $ 1,041
Benefit plans 492 639
Inventories 374 342
Tax credits 169 451
Other 39 60
Total deferred tax assets $ 1,728 $ 2,533
DEFERRED TAX LIABILITIES:
Property, plant and equipment $ 3,838 $ 3,253
Pensions 626 362
Other — 15
Total deferred tax liabilities $ 4,464 $ 3,630
Net deferred tax liability $ 2,736 $ 1,097
BALANCE SHEET CLASSIFICATION:
Non-current deferred income tax liability $ 3,496 $ 2,115
Current deferred income tax asset 760 1,018
Net deferred tax liability $ 2,736 $ 1,097
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