Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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

	Year Ended December 31,
	2016			2015			2014
Current:
Domestic	$	33,156		$	22,943		$	30,415
Foreign		3,628			4,324			3,740
Total current		36,784			27,267			34,155

Deferred:
Domestic		(387	)		(1,210	)		(4,732	)
Foreign		(239	)		(74	)		(569	)
Total deferred		(626	)		(1,284	)		(5,301	)
Total income tax provision	$	36,158		$	25,983		$	28,854

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,
	2016			2015			2014

U.S. Federal income tax rate of 35%	$	34,500		$	25,936		$	28,614
Increase (decrease) in tax rate resulting from:
State and local income taxes, net of federal income tax benefit		2,944			1,857			2,309
Income tax (tax benefits) attributable to foreign income		(887	)		(1,705	)		(1,511	)
Change in unrecognized tax benefits		—			—			(350	)
Other non-deductible items, net		(464	)		(192	)		134
Change in valuation allowance		65			87			(342	)
Provision for income taxes	$	36,158		$	25,983		$	28,854

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,
	2016			2015
Deferred tax assets:
Inventories	$	18,323		$	17,651
Allowance for customer returns		15,092			14,551
Postretirement benefits		607			1,127
Allowance for doubtful accounts		1,589			1,512
Accrued salaries and benefits		11,482			9,683
Capital loss		234			234
Tax credit carryforwards		420			381
Deferred gain on building sale		489			891
Accrued asbestos liabilities		12,638			13,098
		60,874			59,128
Valuation allowance (1)		(505	)		(440	)
Total deferred tax assets		60,369			58,688
Deferred tax liabilities:
Depreciation		7,410			7,054
Promotional costs		—			230
Other		1,832			41
Total deferred tax liabilities		9,242			7,325

Net deferred tax assets	$	51,127		$	51,363

(1)

Current net deferred tax assets are $40.6 million in both 2016 and 2015. Non-current net deferred tax assets are $10.5 million and $10.7 million for 2016 and 2015, respectively. The tax valuation allowance was allocated to long term deferred tax assets in the amounts of $0.5 million and $0.4 million for 2016 and 2015, respectively. None of the valuation allowance was allocated to current deferred tax assets in 2016 and 2015.