Income Taxes

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



	Years Ended September 30,
	2015			2014		2013
U.S	$	(6,373	)	$	7,984	$	13,671
Non-U.S	348			372		175
Income (loss) before income tax provision (benefit)	$	(6,025	)	$	8,356	$	13,846

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



	Years Ended September 30,
	2015			2014			2013
Current income tax provision:
U.S. federal	$	(2,560	)	$	2,847		$	4,055
U.S. state and local	55			101			489
Non-U.S	338			77			111
Total current tax provision (benefit)	(2,167		)	3,025			4,655
Deferred income tax provision (benefit):
U.S. federal	(277		)	(329		)	(540		)
U.S. state and local	(83		)	57			(27		)
Non-U.S	83			—			—
Total deferred tax provision (benefit)	(277		)	(272		)	(567		)
Income tax provision (benefit)	$	(2,444	)	$	2,753		$	4,088

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,
	2015			2014			2013
Income (loss) before income tax provision (benefit)	$	(6,025	)	$	8,356		$	13,846
Less-U.S. state and local income tax provision	(13		)	220			489
Income (loss) before U.S. and non-U.S. federal income tax provision	$	(6,012	)	$	8,136		$	13,357
Income tax provision (benefit) at U.S. federal statutory rates	$	(2,104	)	$	2,848		$	4,675
Tax effect of:
Foreign rate differential	334			74			73
Permanent items	438			(218		)	(278		)
Undistributed earnings of non-U.S. subsidiaries	(992		)	(13		)	(60		)
Prior year tax adjustments	(23		)	41			(181		)
State and local income taxes	(113		)	203			453
Federal tax credits	(92		)	(178		)	(766		)
Change in valuation allowance	147			105			139
Changes in uncertain tax positions	58			(108		)	57
Other	(97		)	(1		)	(24		)
Income tax provision (benefit)	$	(2,444	)	$	2,753		$	4,088

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



	2015			2014
Deferred tax assets:
Net non-U.S. operating loss carryforwards	$	595		$	592
Employee benefits	3,340			2,581
Inventory reserves	865			495
Allowance for doubtful accounts	377			84
Foreign tax credits to undistributed earnings	—			1,940
Intangibles	1,936			2,982
Foreign tax credits	517			492
Other	1,007			87
Total deferred tax assets	8,637			9,253
Deferred tax liabilities:
Depreciation	(9,022		)	(4,836		)
Unremitted foreign earnings	(65		)	(2,997		)
Prepaid expenses	(432		)	(580		)
Other	(87		)	—
Total deferred tax liabilities	(9,606		)	(8,413		)
Net deferred tax assets (liabilities)	(969		)	840
Valuation allowance	(1,095		)	(823		)
Net deferred tax assets (liabilities)	$	(2,064	)	$	17

At September 30, 2015, the Company has a non-U.S. tax loss carryforward of approximately $5,470, which primarily 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 the Irish tax loss carryforward because it is unlikely that such operating loss can be utilized unless the Irish subsidiary resumes operations. The non-U.S. tax loss carryforward does not expire.

The Company has $517 of foreign tax credit carryforwards that are subject to expiration in fiscal 2023-2025 and $67 of U.S. general business tax credits that are subject to expiration in 2035. The foreign tax credit carryforwards have been fully offset by a valuation allowance.

In addition, the Company has $126 of U.S. state tax credit carryforwards subject to expiration in fiscal 2022-2024 and $3,212 of U.S. state and local tax loss carryforwards subject to expiration in fiscal 2020-2035. The U.S. state tax credit carryforwards have been fully offset by a valuation allowance. A portion of the U.S. state and local tax loss carryforwards presented in the table above for fiscal 2015 has been reduced by unrealized stock compensation deductions of $5.

The Company reported liabilities for uncertain tax positions, excluding any related interest and penalties, in fiscal 2015 and 2014 of $105 and $56, respectively. If recognized, $105 of the fiscal 2015 uncertain tax positions would impact the effective tax rate. It is reasonably possible that $36 of uncertain tax positions and $5 of accrued interest will reverse in the next twelve months due to lapse of statue of limitations. As of September 30, 2015, the Company had accrued interest of $22 and recognized $11 for interest and penalties in continuing operations. 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:



	2015		2014
Balance at beginning of year	$	56	$	164
Increase due to tax positions taken in current prior year	49		—
Decrease due to tax positions taken in prior years	—		(108		)
Balance at end of year	$	105	$	56

The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland, Italy 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.

As of September 30, 2015, no taxes have been provided on the undistributed earnings of non-U.S. subsidiaries amounting to $10,843, as the Company intends to permanently reinvest these earnings. Quantification of the deferred tax liability associated with these undistributed earnings is not practicable.