8. INCOME TAXES

The provision for income taxes is based on income before income taxes as follows (in thousands):

	For the year ended
	December 31, 2014		December 31, 2013
Domestic	$	9,484	$	1,406
Foreign		9,139		4,375

Income before income taxes	$	18,623	$	5,781

Components of the total provision for income taxes are as follows (in thousands):

	For the year ended
	December 31, 2014		December 31, 2013
Current provision
Domestic	$	1,917	$	1,179
Foreign		1,126		898

Total current provision		3,043		2,077

Deferred provision
Domestic		1,297		(197	)
Foreign		423		(52	)

Total deferred provision		1,720		(249	)

Provision for income taxes	$	4,763	$	1,828

The provision for income taxes differs from the amount determined by applying the federal statutory rate as follows (in thousands):

	For the year ended
	December 31, 2014			December 31, 2013
Tax provision, computed at statutory rate		34.0	%		34.0	%
State tax, net of federal impact		0.6	%		3.7	%
Change in valuation allowance		(4.7	)%		0.0	%
Effect of foreign tax rate differences		(4.5	)%		(9.7	)%
Permanent items, other		(1.2	)%		(0.3	)%
Other		1.4	%		3.9	%

Provision for income taxes		25.6	%		31.6	%

The tax effects of significant temporary differences and credit and operating loss carryforwards that give rise to the net deferred tax assets and tax liabilities are as follows (in thousands):

	December 31, 2014			December 31, 2013
Current deferred tax assets:
Allowances and other	$	863		$	1,315
Net operating loss and tax credit carryforwards		2,189			3,628

Total current deferred tax assets		3,052			4,943
Valuation allowance		(1,164	)		(1,982	)

Net current deferred tax assets	$	1,888		$	2,961


Noncurrent deferred tax assets:
Employee benefit plans	$	2,563		$	2,074
Goodwill and Intangibles		1,019			1,553
Property, plant & equipment		(1,441	)		(381	)
Other		582			—

Total noncurrent deferred tax assets	$	2,723		$	3,246


Deferred tax liabilities:
Acquired property, plant and equipment and intangible assets	$	960		$	1,997
Other		339			330

Total deferred tax liabilities	$	1,299		$	2,327

The Company has foreign net operating loss carryforwards of approximately $8,900 expiring in 2015 through 2017 and tax credit carryforwards of approximately $142 expiring in 2018. These carryforwards and related valuation allowance were recorded in relation to the acquisition of Globe Motors, Inc. and are included in the purchase price.

Additionally, the Company has foreign operating losses and tax credit carryforwards that relate to a foreign subsidiary acquired in 2010. At the time of the acquisition, the Company could not conclude, on a more likely than not basis, that it would ultimately realize tax benefits from these losses and credits, and therefore valued the deferred benefit at zero. The Company will continue to assess its ability to utilize any portion of the tax carryforward balance and whether it should adjust the amount of deferred tax asset related to this carryforward.

Realization of the Company's recorded deferred tax assets is dependent upon the Company generating sufficient taxable income in the appropriate tax jurisdictions in future years to obtain benefit from the reversal of net deductible temporary differences and from utilization of net operating losses and tax credit carryforwards. During 2014, the Company utilized a portion of its net operating loss and tax credit carryforwards, and adjusted the value of its deferred tax asset related to the carryforwards due to enacted legislation in foreign jurisdictions affecting current and future periods. Also, the Company reduced the valuation allowance recorded due to the uncertainty related to the realization of certain deferred tax assets. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are changed. Management believes that it is more likely than not that the Company will realize the benefits of its deferred tax assets, net of valuation allowances as of December 31, 2014.

The Company files income tax returns in various U.S. and foreign taxing jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state tax examinations in its major tax jurisdictions for periods before 2010. The Company is no longer subject to tax examinations in The Netherlands or Sweden for periods before 2009. The Company is no longer subject to tax examinations in Portugal for periods before 2011.

In relation to the acquisition of Globe Motors, Inc., the Company filed a unilateral election under Section 338(g) of the Internal Revenue Code treating the acquisition as an asset purchase instead of a stock purchase. This election allows the Company to take a stepped-up basis at the fair market value purchase price and the transaction will be deemed, for purposes of the section, as an asset sale. The deemed sale resulted in a taxable gain for the Company.

In general, it is the practice and intention of the Company to reinvest the earnings of its non-domestic subsidiaries in activities outside the United States. Generally, such amounts would become subject to domestic taxation upon the remittance of dividends to the United States and under certain other circumstances. Exceptions may be made on a year-by-year basis to repatriate current year earnings of certain foreign subsidiaries based on cash needs in the United States. During 2013, the Company's foreign subsidiaries paid dividends of $3,400 to the Company's domestic parent in relation to completing the acquisition of Globe Motors, Inc. and U.S. tax consequences of the payments have been included in the Company's provision for income taxes. The Company does not intend to transfer or pay dividends of the remaining amounts and, therefore, has not recorded the domestic tax consequences of such payments. As of December 31, 2014, domestic income and foreign withholding taxes have not been provided for unremitted earnings of foreign subsidiaries. These earnings, which are considered to be indefinitely reinvested, would become subject to domestic income tax if they were remitted to the United States. The amount of unrecognized deferred income tax liability on the unremitted earnings has not been determined because the liability is based on the timing and jurisdictions of any repatriated amounts.