Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The income tax provision (benefit) consists of the following (in thousands):

	Year Ended December 31,
	2013			2012			2011
Current:
Domestic	$	31,220		$	17,791		$	10,887
Foreign		1,706			1,362			1,108
Total current		32,926			19,153			11,995

Deferred:
Domestic		(1,178	)		5,909			(11,886	)
Foreign		171			(84	)		12
Total deferred		( 1,007	)		5,825			(11,874	)
Total income tax provision	$	31,919		$	24,978		$	121

Effective Income Tax Rate Reconciliation

Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands):

	Year Ended December 31,
	2013			2012			2011

U.S. Federal income tax rate of 35%	$	29,737		$	23,781		$	22,557
Increase (decrease) in tax rate resulting from:
State and local income taxes, net of federal income tax benefit		2,936			2,021			2,261
Income tax (tax benefits) attributable to foreign income		(428	)		(852	)		(163	)
Change in unrecognized tax benefits		—			—			(454	)
Other non-deductible items, net		(806	)		697			(2,455	)
Change in valuation allowance		480			(669	)		(21,625	)
Provision for income taxes	$	31,919		$	24,978		$	121

Components of Net Deferred Tax Assets and Liabilities

The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands):

	December 31,
	2013			2012
Deferred tax assets:
Inventories	$	16,801		$	16,115
Allowance for customer returns		11,622			10,660
Postretirement benefits		2,446			2,911
Allowance for doubtful accounts		2,592			2,223
Accrued salaries and benefits		9,110			7,924
Net operating loss		—			84
Capital loss		5,999			6,007
Tax credit carryforwards		695			1,167
Deferred gain on building sale		1,713			2,123
Accrued asbestos liabilities		9,780			10,358
Other		—			470
		60,758			60,042
Valuation allowance (1)		(6,694	)		(7,174	)
Total deferred tax assets		54,064			52,868
Deferred tax liabilities:
Depreciation		7,583			8,328
Promotional costs		187			197
Other		383			—
Total deferred tax liabilities		8,153			8,525

Net deferred tax assets	$	45,911		$	44,343

(1)

Current net deferred tax assets are $35.6 million and $33.2 million for 2013 and 2012, respectively. Non-current net deferred tax assets are $10.3 million and $11.1 million for 2013 and 2012, respectively. The tax valuation allowance was allocated to long term deferred tax assets in the amounts of $6.7 million and $7.2 million in 2013 and 2012, respectively. None of the valuation allowance was allocated to current deferred tax assets in 2013 and 2012.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at January 1, 2012	$	349
Increase based on tax positions taken in the current year		—
Decrease based on tax positions taken in the current year		—
Balance at December 31, 2012		349
Increase based on tax positions taken in the current year		—
Decrease based on tax positions taken in the current year		—
Balance at December 31, 2013	$	349