12.	INCOME TAXES:

The provision for income taxes consisted of the following:

	2012		2011		2010
Current:
Federal	$	14,060	$	15,306	$	20,898
State		2,483		3,004		3,191
Foreign		6,437		10,689		9,325
		22,980		28,999		33,414
Deferred		5,737		9,557		5,225
Total	$	28,717	$	38,556	$	38,639

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

	2012			2011			2010
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Effect of state income taxes, net of federal deduction		2.1			2.5			2.6
Foreign taxes less than federal statutory rate		(0.6	)		(1.3	)		(0.7	)
Other		(2.3	)		(1.8	)		(1.9	)
Effective tax rate		34.2	%		34.4	%		35.0	%

The Company's foreign subsidiaries had income before income taxes for the years ended September 30, 2012, 2011 and 2010 of approximately $24,654, $36,870 and $36,040, respectively. At September 30, 2012, undistributed earnings of foreign subsidiaries for which deferred U.S. income taxes have not been provided approximated $189,067.

The components of deferred tax assets and liabilities at September 30, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets:
Postretirement benefits	$	11,244		$	10,743
Environmental reserve		2,217			2,430
Pension costs		30,145			25,524
Deferred compensation		281			1,037
Stock options		9,653			9,447
Other		24,370			22,790
		77,910			71,971
Deferred tax liabilities:
Depreciation		(4,220	)		(3,503	)
Goodwill		(57,767	)		(48,494	)
Other		(206	)		(1,441	)
		(62,193	)		(53,438	)

Net deferred tax asset	$	15,717		$	18,533

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

	2012			2011			2010
Balance, beginning of year	$	2,928		$	3,422		$	3,575
Increases for tax positions of prior years		742			-			437
Decreases for tax positions of prior years		(74	)		(96	)		(506	)
Increases based on tax positions related to the current year		137			202			355
Decreases due to settlements with taxing authorities		(602	)		(38	)		(57	)
Decreases due to lapse of statute of limitation		(423	)		(562	)		(382	)
Balance, end of year	$	2,708		$	2,928		$	3,422

The Company had unrecognized tax benefits of $2,708 and $2,928 at September 30, 2012 and 2011, 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 $36 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 2012, the Company included a net increase of $29 in interest and penalties as a component of the provision for income taxes. Total penalties and interest accrued were $1,871 and $1,842 at September 30, 2012 and 2011, 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, 2012, the tax years that remain subject to examination by major jurisdiction generally are:

United States - Federal	2010 and forward
United States - State	2009 and forward
Canada	2008 and forward
Europe	2004 and forward
United Kingdom	2009 and forward
Australia	2008 and forward
Asia	2005 and forward