NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) INCOME TAXES 5 16 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 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 The items comprising income tax expense for continuing operations are as follows (in thousands): 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):