Income Taxes

Income (loss) before income taxes and equity earnings is attributable to the following jurisdictions (in thousands):



	Year Ended December 31,
	2015		2014		2013
United States	$	203,269	$	178,497	$	158,851
Foreign	4,881		2,888		(113		)
Total	$	208,150	$	181,385	$	158,738

The provision for income taxes consisted of the following (in thousands):



	Year Ended December 31,
	2015			2014		2013
Current:
Federal	$	65,676		$	54,447	$	49,425
State and other	10,263			9,126		7,486
Total current provision for income taxes	75,939			63,573		56,911

Deferred:
Federal	4,568			6,942		4,905
State and other	(370		)	44		(226		)
Total deferred provision for income taxes	4,198			6,986		4,679
Provision for income taxes	$	80,137		$	70,559	$	61,590

A reconciliation of the U.S. federal statutory tax rate to our effective tax rate on Income before income taxes and equity earnings is as follows:



	Year Ended December 31,
	2015		2014		2013
Federal statutory rate	35.00	%	35.00	%	35.00	%
Change in valuation allowance	0.20		0.43		0.57
Other, primarily state income tax rate	3.30		3.47		3.23
Total effective tax rate	38.50	%	38.90	%	38.80	%

The table below presents the components of our deferred tax assets and liabilities (in thousands):



	December 31,
	2015			2014
Deferred tax assets:
Product inventories	$	7,101		$	6,583
Accrued expenses	3,303			3,168
Allowance for doubtful accounts	606			172
Total current	11,010			9,923
Less: Valuation allowance	—			(1,596		)
Component reclassified for net presentation	(5,480		)	(5,210		)
Total current, net	5,530			3,117

Leases	1,786			1,763
Share-based compensation	13,422			14,483
Uncertain tax positions	2,092			1,641
Net operating losses	5,485			5,494
Interest rate swaps	1,513			861
Equity losses in unconsolidated investments	—			5,653
Other	1,159			1,009
Total non-current	25,457			30,904
Less: Valuation allowance	(5,485		)	(9,551		)
Component reclassified for net presentation	(18,755		)	(20,462		)
Total non-current, net	1,217			891

Total deferred tax assets	6,747			4,008

Deferred tax liabilities:
Trade discounts on purchases	3,001			2,836
Prepaid expenses	2,479			2,374
Total current	5,480			5,210
Component reclassified for net presentation	(5,480		)	(5,210		)
Total current, net	—			—

Intangible assets, primarily goodwill	40,197			36,927
Depreciation	8,366			7,039
Total non-current	48,563			43,966
Component reclassified for net presentation	(18,755		)	(20,462		)
Total non-current, net	29,808			23,504

Total deferred tax liabilities	29,808			23,504

Net deferred tax liability	$	(23,061	)	$	(19,496	)

At December 31, 2015, certain of our international subsidiaries had tax loss carryforwards totaling approximately $21.4 million, which expire in various years after 2016. Deferred tax assets related to the tax loss carryforwards of these international subsidiaries were $5.5 million as of December 31, 2015 and $5.5 million as of December 31, 2014. We have recorded a corresponding valuation allowance of $5.5 million and $5.5 million in the respective years. At December 31, 2014, we had a $5.7 million valuation allowance for our deferred tax asset related to the $14.4 million capital loss carryforward resulting from the write‑off of our investment in Latham Acquisition Corporation (LAC). As of December 31, 2015, the capital loss carryforward has expired and we no longer have the deferred tax asset or the valuation allowance recorded.

We reduce federal and state income taxes payable by the tax benefits associated with the exercise of nonqualified stock options and the lapse of restrictions on restricted stock awards. To the extent realized tax deductions exceed the amount of previously recognized deferred tax benefits related to share-based compensation, we record an excess tax benefit in stockholders’ equity. We recorded excess tax benefits of $7.7 million in 2015 and $5.5 million in 2014.

As of December 31, 2015, United States income taxes were not provided on earnings of our foreign subsidiaries, as we have invested or expect to invest the undistributed earnings indefinitely. If in the future these earnings are repatriated to the United States, or if we determine that the earnings will be remitted in the foreseeable future, additional income tax provisions may be required. Determining the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable due to the complexity of tax laws and regulations and the varying circumstances, tax treatments and timing of any future repatriation.

We hold, through our affiliates, cash balances in the countries in which we operate, including amounts held outside the United States. Most of the amounts held outside the United States could be repatriated to the United States, but, under current law, may be subject to United States federal income taxes, less applicable foreign tax credits. Repatriation of some foreign balances is restricted by local laws including the imposition of withholding taxes in some jurisdictions. We have not provided for the United States federal tax liability on these amounts, and for financial statement purposes, these foreign cash balances are considered indefinitely reinvested as of December 31, 2015 and are intended to be used to fund current cash flow needs in the countries where held.

The following table summarizes the activity related to uncertain tax positions for the past three years (in thousands):



	2015		2014		2013
Balance at beginning of year	$	4,690	$	3,837	$	3,504
Increases for tax positions taken during a prior period	410		—		—
Increases for tax positions taken during the current period	1,782		1,664		1,140
Decreases resulting from the expiration of the statute of limitations	904		811		807
Decreases relating to settlements	—		—		—
Balance at end of year	$	5,978	$	4,690	$	3,837

The total amount of unrecognized tax benefits that, if recognized, would decrease the effective tax rate was $3.9 million at December 31, 2015 and $3.0 million at December 31, 2014.

We record interest expense related to unrecognized tax benefits in Interest and other non-operating expenses, net, while we record related penalties in Selling and administrative expenses on our Consolidated Statements of Income. For unrecognized tax benefits, we had interest expense of $0.1 million in 2015, minimal interest expense in 2014 and interest income of $0.2 million in 2013. Accrued interest related to unrecognized tax benefits was approximately $0.5 million at December 31, 2015 and $0.4 million at December 31, 2014.

We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2012.