5. INCOME TAXES

The provision for income taxes is summarized below:

	2014			2013		2012
Current expense:
Federal	$	893		$	1,080	$	—
State		175			333		44
Total current income tax expense		1,068			1,413		44
Deferred		2,560			2,063		2,697
Change in valuation allowance		(318	)		318		—
Total deferred income tax expense		2,242			2,381		2,697
Total income tax expense	$	3,310		$	3,794	$	2,741

The consolidated effective tax rates differ from the federal statutory rates as follows:

	2014			2013			2012
Statutory federal rate		35.0	%		35.0	%		35.0	%
State income taxes after federal income tax		5.0			9.3			5.6
Valuation allowance		(2.3)			2.6			—
Accounting for Stock Options		1.9			2.7			2.6
Other		(2.6)			(1.4	)		(1.1	)
Consolidated effective tax rate		37.0	%		48.2	%		42.1	%

The following is an analysis of accumulated deferred income taxes:

	2014			2013
Assets:
Current:
Bad debts	$	127		$	—
Employee benefit accruals		251			279
Environmental reserves		(125)			1,571
Inventory		1,158			1,231
State taxes		1,812			1,744
Alternative minimum tax credit carryforward		130			847
Other		1,255			1,085
Total current		4,608			6,757
Noncurrent:
Bad debts		1,062			1,177
Employee benefit accruals		396			494
Environmental reserves		3,352			1,753
Property		(348	)		1,448
Valuation allowance		(265	)		(583	)
Total noncurrent		4,197			4,289
Total net assets	$	8,805		$	11,046

The Company has an Alternative Minimum Tax Credit of approximately $130 and is available to reduce future federal taxes. A valuation allowance of $265 was established in a prior year relating to other items, as it is management’s belief that it is more likely than not that a portion of this deferred asset is not realizable.

In fiscal 2013 the Company’s effective tax rate increased primarily due to establishing a valuation allowance for the Company’s state deferred tax assets, as required under ASC 740. This occurred because of favorable changes in the New Jersey tax law that will significantly reduce the Company’s New Jersey income tax apportionment factor and the overall state effective tax rate in future periods. In fiscal 2014 the valuation allowance was reduced as a result of the movement of state deferred taxes and the impact from various state tax rate adjustments.

At March 31, 2014, the Company had no unrecognized tax benefits, and the Company does not expect the liability for uncertain tax positions to increase during the next fiscal year.

The Company is subject to taxation in the United States and various states and foreign jurisdictions. The Company’s tax years for fiscal 2011 through the present are subject to examination by the tax authorities. With few exceptions, the Company is no longer subject to United States federal, state, local or foreign examinations by tax authorities for years before fiscal 2011.

The Company policy is to recognize interest and penalties, related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties, if incurred, are included within the related tax liability line in the consolidated balance sheets.