Note 15.

Income Taxes

Significant components of the Company’s deferred tax liabilities and assets as of December 31, 2013 and 2012 are as follows:



		2013		2012

Deferred tax liabilities:
Goodwill and other intangibles	$	(11,360)	$	(12,057)
Depreciation		(3,369)		(2,745)
Inventories		(3,611)		(3,433)
Investment in joint venture		(587)		(582)
Other		(437)		(478)
Total deferred tax liabilities		(19,364)		(19,295)
Deferred tax assets:
Pension and post-retirement liability		1,033		2,787
Warranty reserve		2,689		5,752
Deferred compensation		1,525		1,161
Accounts receivable		388		358
Contingent liabilities		662		657
Long-term insurance reserves		569		592
Net operating loss / tax credit carryforwards		139		188
Other		843		245
Total deferred tax assets		7,848		11,740
Net deferred tax liability	$	(11,516)	$	(7,555)

Significant components of the provision for income taxes are as follows:



		2013		2012		2011

Current:
Federal	$	8,776	$	9,742	$	4,123
State		837		1,977		485
Foreign		1,982		1,910		2,493
Total current		11,595		13,629		7,101
Deferred:
Federal		3,200		(3,966)		3,446
State		273		(155)		553
Foreign		(229)		(442)		(515)
Total deferred		3,244		(4,563)		3,484
Total income tax expense from continuing operations	$	14,839	$	9,066	$	10,585

At December 31, 2013, the Company has not recorded deferred U.S. income taxes or foreign withholding taxes on $49,030 of undistributed earnings of its foreign subsidiaries. It is management’s intent and practice to indefinitely reinvest such earnings outside of the U.S. Determination of the amount of any unrecognized deferred income tax liability associated with these undistributed earnings is not practicable because of the complexities of the hypothetical calculation.

Income before income taxes, as shown in the accompanying consolidated statements of operations, includes the following components:



		2013		2012		2011


Domestic	$	37,283	$	16,600	$	23,433
Foreign		6,832		7,230		9,219
Income from continuing operations, before income taxes	$	44,115	$	23,830	$	32,652

The reconciliation of income tax computed at statutory rates to income tax expense is as follows:



	2013		2012		2011

Statutory rate	35.0	%	35.0	%	35.0	%
Foreign tax rate differential	(1.7)		(3.0)		(2.3)
State income taxes, net of federal benefit	2.6		4.5		2.2
Non-deductible expenses	0.6		1.4		0.7
Tax credits	(0.8)		(2.2)		(2.0)
Change in liability for unrecognized tax benefits	(1.9)		0.9		(0.6)
Other	(0.2)		1.4		(0.5)
	33.6	%	38.0	%	32.5	%

At December 31, 2013 and 2012, the tax benefit of net operating loss carryforwards available for state income tax purposes was $83 and $59, respectively. The net operating loss carryforwards will expire in 2019 through 2032. The Company has foreign tax credit carryforwards in the amount of $85 that will expire in 2022. The Company anticipates utilizing these operating loss and credit carryforwards prior to their expiration and, therefore, has not provided a valuation allowance for these amounts.

The following table provides a reconciliation of unrecognized tax benefits as of December 31, 2013 and 2012:



		2013		2012


Unrecognized tax benefits at beginning of period:	$	2,045	$	1,849
Increases based on tax positions for prior periods		149		220
Decreases based on tax positions for prior periods		(89)		-
Decreases related to settlements with taxing authorities		(596)		-
Decreases as a result of a lapse of the applicable statute of limitations		-		(24)
Balance at end of period	$	1,509	$	2,045

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $1,509 at December 31, 2013. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. At December 31, 2013, the Company had accrued interest and penalties related to unrecognized tax benefits of $342. As of December 31, 2013, it is reasonably possible that unrecognized tax benefits could decrease between $286 and $551 within the next 12 months related to state tax uncertainties. Ultimate realization of this decrease is dependent upon the occurrence of certain events, including the completion of audits by tax authorities and expiration of statutes of limitations.

The Company files income tax returns in the United States and in various state, local and foreign jurisdictions. The Company is subject to federal income tax examinations for the period 2010 and forward. With respect to the state, local and foreign filings, certain entities of the Company is subject to income tax examinations for the periods 2007 and forward.