Income Taxes

We recognize a liability or an asset for the deferred tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. These temporary differences will result in taxable or deductible amounts in future years when reported amounts of the assets or liabilities are recovered or settled. The deferred tax assets are periodically reviewed for recoverability.

There were no uncertain tax positions in fiscal 2015, 2014 and 2013.

At May 31, 2015 and 2014, we did not have any accrual for interest and penalties.

We are subject to taxation in the U.S., as well as various states and foreign jurisdictions. We have substantially settled all income tax matters for the United States federal jurisdiction for years through fiscal 2011. Major state jurisdictions have been examined through fiscal 2004 and 2005, and foreign jurisdictions have not been examined for their respective initial statutory periods of approximately 3 years.

For financial reporting purposes, income before income taxes comprised the following as of May 31:



	2015		2014		2013
Domestic	$	24,203	$	30,907	$	37,162
Foreign	447		1,619		(49		)
	$	24,650	$	32,526	$	37,113

The income tax provision consisted of the following for the fiscal years ended May 31:



	2015			2014			2013
Current
Federal	$	11,636		$	18,007		$	17,007
State	1,355			1,720			1,417
Foreign	387			319			573
Deferred
Federal	(3,626		)	(7,553		)	(4,401		)
State	(248		)	(500		)	257
Foreign	(286		)	125			(494		)
	$	9,218		$	12,118		$	14,359

The following reconciles the statutory federal income tax rate to the effective tax rate for the fiscal years ended May 31:



	2015		2014		2013
Statutory federal rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	2.9		2.5		3.0
Foreign tax credit/refund	(0.8	)	(0.6	)	—
Permanent differences resulting from valuation allowances	0.6		0.3		0.7
Other	(0.3	)	0.1		—
Effective tax rate	37.4	%	37.3	%	38.7	%

Our effective tax rate remained consistent with the prior fiscal year. The lower effective rate for fiscal 2014 as compared to fiscal 2013 was due to more income being apportioned to states with lower tax rates resulting in a lower effective state rate and to Belgian tax credits.

The tax effects of temporary differences that gave rise to significant portions of the net deferred tax liabilities consisted of the following at May 31:



	2015			2014
Deferred tax assets:
Allowance for doubtful accounts	$	113		$	198
Deferred compensation and benefits	4,588			4,547
Net operating losses	398			254
Valuation allowance	(398		)	(254		)
Other	1,890			1,791
	6,591			6,536
Deferred tax liabilities:
Accumulated depreciation	(42,505		)	(46,169		)
Deferred taxes on bargain purchase	(1,583		)	(2,027		)
Intangible asset	(155		)	(152		)
Net deferred tax liabilities	$	(37,652	)	$	(41,812	)

We determined that a valuation allowance was required in fiscal 2015, 2014 and 2013 of $398, $254 and $1,110, respectively, for our deferred tax assets related to certain foreign net operating loss carry forwards, which, if unused, will expire between fiscal 2017 and 2020. The change in the valuation allowance for fiscal 2015, 2014 and 2013 was not significant. As of May 31, 2015, 2014 and 2013, U.S. income taxes had not been assessed on approximately $7,574, $6,303 and $1,833, respectively, of undistributed earnings of foreign subsidiaries because we consider these earnings to be invested indefinitely.