INCOME TAXES

Income from continuing operations before income taxes was as follows:



Years Ended March 31,	2015		2014		2013
United States operations	$	161,165	$	122,245	$	175,743
Non-United States operations	47,655		66,131		51,355
	$	208,820	$	188,376	$	227,098

The components of the provision for income taxes related to income from continuing operations consisted of the following:



Years Ended March 31,	2015			2014		2013
Current:
United States federal	$	52,234		$	24,016	$	22,259
United States state and local	8,551			5,991		4,893
Non-United States	12,475			16,449		13,516
	73,260			46,456		40,668
Deferred:
United States federal	1,436			10,501		26,550
United States state and local	214			1,473		(10		)
Non-United States	(1,154		)	504		(87		)
	496			12,478		26,453
Total Provision for Income Taxes	$	73,756		$	58,934	$	67,121

The total provision for income taxes can be reconciled to the tax computed at the United States federal statutory tax rate as follows:



Years Ended March 31,	2015		2014		2013
United States federal statutory tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in accruals for uncertain tax positions	—	%	(5.1	)%	3.6	%
State and local taxes, net of federal income tax benefit	2.8	%	2.6	%	2.1	%
Increase in valuation allowances	2.1	%	1.5	%	1.1	%
Foreign income tax credit	(1.0	)%	(2.0	)%	(0.5	)%
Difference in non-United States tax rates	(3.6	)%	(0.1	)%	(2.5	)%
U.S. manufacturing deduction	(1.6	)%	(1.2	)%	(1.3	)%
U.S. Tax Benefit resulting from European Restructuring	—	%	(0.6	)%	(7.8	)%
Capitalized Acquisition Costs	2.2	%	—	%	—	%
All other, net	(0.6	)%	1.2	%	(0.1	)%
Total Provision for Income Taxes	35.3	%	31.3	%	29.6	%

Unrecognized Tax Benefits. We classify uncertain tax positions and related interest and penalties as long-term liabilities within “Other liabilities” in our accompanying Consolidated Balance Sheets, unless they are expected to be paid within 12 months, in which case, the uncertain tax positions would be classified as current liabilities within “Accrued income taxes.” We recognize interest and penalties related to unrecognized tax benefits within “Income tax expense” in our accompanying Consolidated Statements of Income.

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:



Years Ended March 31,	2014
Unrecognized Tax Benefits Balance at April 1	$	9,362
Increases for tax provisions of prior years	—
Decreases for tax provisions of prior years	—
Increases for tax provisions of current year	—
Decreases for tax provisions of current year	—
Settlements	(9,244		)
Lapse of statute of limitations	(118		)
Unrecognized Tax Benefits Balance at March 31	$	—

For the year ended March 31, 2015, no interest and penalties were recognized. For the year ended March 31, 2014, current income tax expense includes a benefit of $(276) for interest, and a benefit of $(31) for penalties. As of March 31, 2015 and 2014, we had no unrecognized tax benefits and have not recorded any liability for interest and penalties.

We operate in numerous taxing jurisdictions and are subject to regular examinations by various United States federal, state and local, as well as foreign jurisdictions. We are no longer subject to United States federal examinations for years before fiscal 2014 and, with limited exceptions, we are no longer subject to United States state and local, or non-United States, income tax examinations by tax authorities for years before fiscal 2010. We remain subject to tax authority audits in various jurisdictions wherever we do business. We do not expect the results of these examinations to have a material adverse effect on our consolidated financial statements.

Deferred Taxes. The significant components of the deferred tax assets and liabilities recorded in our accompanying balance sheets at March 31, 2015 and 2014 were as follows:



March 31,	2015			2014
Deferred Tax Assets:
Post-retirement benefit accrual	$	8,130		$	8,171
Compensation	24,374			22,008
Net operating loss carryforwards	13,090			12,518
Accrued expenses	6,808			6,681
Insurance	4,071			3,689
Deferred income	6,148			5,265
Bad debt	1,941			2,191
Pension	2,781			408
Other	464			965
Deferred Tax Assets	67,807			61,896
Less: Valuation allowance	14,380			12,541
Total Deferred Tax Assets	53,427			49,355
Deferred Tax Liabilities:
Depreciation and depletion	50,559			50,265
Intangibles	38,121			36,367
Other	3,710			5,692
Total Deferred Tax Liabilities	92,390			92,324
Net Deferred Tax Assets (Liabilities)	$	(38,963	)	$	(42,969	)

At March 31, 2015, we had federal operating loss carryforwards of $635, which can be utilized subject to certain limitations, and foreign operating loss carry forwards of $45,454. The majority of the foreign carryforwards have a definite expiration period and will expire if unused between fiscal years 2016 and 2022. In addition, we have recorded tax benefits of $1,107 related to state operating loss carryforwards. At March 31, 2015, we had $71 of tax credit carryforwards. These credit carryforwards expire between fiscal 2017 and fiscal 2026.

We review the need for a valuation allowance against our deferred tax assets. A valuation allowance of $14,380 has been applied to a portion of the net deferred tax assets because we do not believe it is more-likely-than-not that we will receive future benefit. The valuation allowance increased during fiscal 2015 by $1,839.

At March 31, 2015, cumulative undistributed earnings of international operations amounted to approximately $224,411. These earnings are indefinitely reinvested in international operations. Accordingly, no provision has been made for deferred taxes related to the future repatriation of such earnings, nor is it practicable to determine the amount of this liability.

At March 31, 2014, we had a current prepaid income tax position. This was mainly due to the timing of U.S. Federal income tax estimated payments and a prior year overpayment carryforward.