Income Taxes

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



	Years Ended September 30,
	2014		2013		2012
U.S	$	7,984	$	13,671	$	8,855
Non-U.S	372		175		313
Income before income tax provision	$	8,356	$	13,846	$	9,168

Income taxes from continuing operations before income tax provision consist of the following:



	Years Ended September 30,
	2014			2013			2012
Current income tax provision:
U.S. federal	$	2,847		$	4,055		$	2,617
U.S. state and local	101			489			514
Non-U.S	77			111			70
Total current tax provision	3,025			4,655			3,201
Deferred income tax provision (benefit):
U.S. federal	(329		)	(540		)	(324		)
U.S. state and local	57			(27		)	(16		)
Total deferred tax provision (benefit)	(272		)	(567		)	(340		)
Income tax provision	$	2,753		$	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,
	2014			2013			2012
Income before income tax provision	$	8,356		$	13,846		$	9,168
Less-U.S. state and local income tax provision	101			489			514
Income before U.S. and non-U.S. federal income tax provision	$	8,255		$	13,357		$	8,654
Income tax provision at U.S. federal statutory rates	$	2,889		$	4,675		$	2,942
Tax effect of:
Permanent items	(94		)	(255		)	(213		)
Undistributed earnings of non-U.S. subsidiaries	(13		)	(60		)	(185		)
Prior year tax adjustments	41			(181		)	—
State and local income taxes	161			453			498
Federal tax credits	(178		)	(766		)	(272		)
Change in valuation allowance	105			139			127
Changes in uncertain tax positions	(108		)	57			—
Other	(50		)	26			(36		)
Income tax provision	$	2,753		$	4,088		$	2,861

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



	2014			2013
Deferred tax assets:
Net non-U.S. operating loss carryforwards	$	592		$	592
Employee benefits	2,581			1,884
Inventory reserves	495			521
Asset impairment reserve	—			27
Allowance for doubtful accounts	84			143
Foreign tax credits to undistributed earnings	1,940			1,932
Foreign tax credits	492			464
Other	87			105
Total deferred tax assets	6,271			5,668
Deferred tax liabilities:
Depreciation	(1,854		)	(2,524		)
Unremitted foreign earnings	(2,997		)	(3,002		)
Prepaid expenses	(580		)	(170		)
Total deferred tax liabilities	(5,431		)	(5,696		)
Net deferred tax assets (liabilities)	840			(28		)
Valuation allowance	(823		)	(718		)
Net deferred tax assets (liabilities)	$	17		$	(746	)

At September 30, 2014, 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 has $492 of foreign tax credit carryforwards that are subject to expiration in fiscal 2023.

The Company recognized a $105 increase in the valuation allowance against deferred tax assets in fiscal 2014 and a $139 increase in the valuation allowance against deferred tax assets in fiscal 2013.

The Company reported liabilities for uncertain tax positions, excluding any related interest and penalties, in fiscal 2014 and 2013 of $56 and $164, respectively. If recognized, $56 of the fiscal 2014 uncertain tax positions would impact the effective tax rate. As of September 30, 2014, the Company had accrued interest of$11 and recognized a nominal amount for interest and no amount for penalties. 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:



	2014			2013
Balance at beginning of year	$	164		$	110
Increase due to tax positions taken in current year	—			54
Decrease due to tax positions taken in prior years	(108		)	—
Balance at end of year	$	56		$	164

The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland and various states and local jurisdictions. The Company believes it has appropriate support for its federal income tax returns. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for fiscal years prior to 2012, state and local income tax examinations for fiscal years prior to 2008, or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2007.