12.	INCOME TAXES:

The provision for income taxes consisted of the following:

	2011		2010		2009
Current:
Federal	$	15,306	$	20,898	$	15,896
State		3,004		3,191		1,584
Foreign		10,689		9,325		5,963
		28,999		33,414		23,443
Deferred		9,557		5,225		7,870
Total	$	38,556	$	38,639	$	31,313

	2011			2010
Deferred tax assets:
Postretirement benefits	$	10,743		$	9,516
Environmental reserve		2,430			2,649
Pension costs		25,524			19,112
Deferred compensation		1,037			5,898
Stock options		9,447			7,436
Other		22,790			16,162
		71,971			60,773
Deferred tax liabilities:
Depreciation		(3,503	)		(1,018	)
Goodwill		(48,494	)		(41,281	)
Other		(1,441	)		(2,203	)
		(53,438	)		(44,502	)

Net deferred tax asset	$	18,533		$	16,271

The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows:

	2011			2010			2009
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Effect of state income taxes, net of federal deduction		2.5			2.6			2.9
Foreign taxes less than federal statutory rate		(1.3	)		(0.7	)		(1.8	)
Other		(1.8	)		(1.9	)		(1.7	)
Effective tax rate		34.4	%		35.0	%		34.4	%

The Company's foreign subsidiaries had income before income taxes for the years ended September 30, 2011, 2010 and 2009 of approximately $36,870, $36,040 and $24,815, respectively. At September 30, 2011, undistributed earnings of foreign subsidiaries for which deferred U.S. income taxes have not been provided approximated $176,300.

Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows:

	2011			2010			2009
Balance beginning of year	$	3,422		$	3,575		$	4,370
Increases for tax positions of prior years		-			437			120
Decreases for tax positions of prior years		(96	)		(506	)		(607	)
Increases based on tax positions related to the current year		202			355			674
Decreases due to settlements with taxing authorities		(38	)		(57	)		(542	)
Decreases due to lapse of statute of limitation		(562	)		(382	)		(440	)
Balance end of year	$	2,928		$	3,422		$	3,575

The Company had unrecognized tax benefits of $2,928 and $3,422 at September 30, 2011 and 2010, respectively, all of which, if recorded, would impact the annual effective tax rate. It is reasonably possible that the amount of unrecognized tax benefits could change by approximately $279 in the next 12 months primarily due to expiration of statutes related to specific tax positions.

The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. For fiscal 2011, the Company included a net decrease of $570 in interest and penalties as a component of the provision for income taxes. Total penalties and interest accrued were $1,842 and $2,412 at September 30, 2011 and 2010, respectively. These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions.

The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitation expires for those tax jurisdictions. As of September 30, 2011, the tax years that remain subject to examination by major jurisdiction generally are:

United States - Federal	2008 and forward
United States - State	2008 and forward
Canada	2007 and forward
Europe	2003 and forward
United Kingdom	2009 and forward
Australia	2007 and forward
Asia	2005 and forward