Income Taxes

The components of income from continuing operations before income tax provision are as follows:



	Years Ended September 30,
	2013		2012
U.S	$	13,671	$	8,855
Non-U.S	175		313
Income before income tax provision	$	13,846	$	9,168

The income tax provision from continuing operations consists of the following:



	Years Ended September 30,
	2013			2012
Current income tax provision:
U.S. federal	$	4,055		$	2,617
U.S. state and local	489			514
Non-U.S	111			70
Total current tax provision	4,655			3,201
Deferred income tax provision (benefit):
U.S. federal	(540		)	(324		)
U.S. state and local	(27		)	(16		)
Non-U.S	—			—
Total deferred tax provision (benefit)	(567		)	(340		)
Income tax provision	$	4,088		$	2,861

The income tax provision differs from amounts currently payable or refundable due to certain items reported for financial statement purposes in periods that differ from those in which they are reported for tax purposes. The income tax provision from continuing operations in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows:



	Years Ended September 30,
	2013			2012
Income before income tax provision	$	13,846		$	9,168
Less-U.S. state and local income tax provision	489			514
Income before U.S. and non-U.S. federal income tax provision	$	13,357		$	8,654
Income tax provision at U.S. federal statutory rates	$	4,675		$	2,942
Tax effect of:
Permanent items	(436		)	(213		)
Undistributed earnings of non-U.S. subsidiaries	(60		)	(185		)
State and local income taxes	453			498
Federal tax credits	(766		)	(272		)
Change in valuation allowance	139			127
Other	83			(36		)
Income tax provision	$	4,088		$	2,861

Deferred tax assets and liabilities at September 30 consist of the following:



	2013			2012
Deferred tax assets:
Net non-U.S. operating loss carryforwards	$	592		$	592
Employee benefits	1,755			3,219
Inventory reserves	521			412
Asset impairment reserve	27			288
Allowance for doubtful accounts	143			122
Foreign tax credits to undistributed earnings	1,932			1,841
Foreign tax credits	464			—
Other	64			43
Total deferred tax assets	5,498			6,517
Deferred tax liabilities:
Depreciation	(2,524		)	(2,540		)
Unremitted foreign earnings	(3,002		)	(2,970		)
Other	—			(8		)
Total deferred tax liabilities	(5,526		)	(5,518		)
Net deferred tax assets (liabilities)	(28		)	999
Valuation allowance	(718		)	(579		)
Net deferred tax assets (liabilities)	$	(746	)	$	420

At September 30, 2013, the Company has a non-U.S. tax loss carryforward of approximately $5,458, which relates to the Company’s Irish subsidiary that ceased operations in 2007. A valuation allowance has been recorded against the deferred tax asset related to this non-U.S. tax loss carryforward because it is unlikely that such operating loss can be utilized unless the Irish subsidiary resumed operations. The non-U.S. tax loss carryforward does not expire.

The Company recognized a $139 increase in the valuation allowance against its net deferred tax assets in fiscal years 2013 and a $127 increase in the valuation allowance against its net deferred tax assets in fiscal 2012.

The Company reported liabilities for uncertain tax positions, which includes any related interest and penalties, in fiscal 2013 and 2012 of $177 and $120, respectively. During fiscal 2013, the Company recognized a nominal amount for interest and no amount for penalties. Based on the statute of limitations for specific jurisdictions, the related unrecognized tax benefit for positions previously taken may change in the next 12 months by decreasing by approximately $22, which would be recorded through income tax expense. The Company classifies interest and penalties on uncertain tax positions as income tax expense. A summary of activity related to the Company’s uncertain tax position is as follows:



	2013		2012
Balance at beginning of year	$	120	$	96
Increase due to tax positions taken in current year	57		55
Increase due to tax positions taken in prior years	—		1
Lapse of statute of limitations	—		(32		)
Balance at end of year	$	177	$	120

The Company is subject to income taxes in the U.S. federal jurisdiction, and various states, local and non-U.S. jurisdictions. The Company’s federal income tax returns for fiscal years 2010 and 2011, as well as the amended federal income tax returns for fiscal 2008 and 2009, are under review by the Internal Revenue Service, the outcome of which is not known at this time. The Company believes it has appropriate support for its federal income tax returns. The Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2007.