NOTE J—INCOME TAXES

Components of income tax expense attributable to continuing operations are as follows:

(In thousands)	2013			2012			2011

Current:
Federal	$	32,521		$	32,394		$	18,976
State		6,241			6,386			2,242


Total Current		38,762			38,780			21,218


Deferred:
Federal		(1,510	)		(3,273	)		6,242
State		(92	)		(1,030	)		2,197


Total Deferred		(1,602	)		(4,303	)		8,439


Provision for income taxes	$	37,160		$	34,477		$	29,657

A reconciliation of the federal statutory tax rate to the Company's effective tax rate is as follows:



Federal statutory tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in taxes resulting from:
State income taxes (net of federal effect)	4.0		4.3		4.3
Domestic manufacturing deduction	(2.1	)	(2.4	)	(2.0	)
Other	—		(1.8	)	(2.1	)


Provision for income taxes	36.9	%	35.1	%	35.2	%

The significant components of the net deferred income tax liability (asset) were as follows at December 31:

(In thousands)	2013			2012

Deferred tax liabilities:
Goodwill amortization	$	68,735		$	63,405
Property, plant and equipment		4,239			3,339
Acquired intangibles		16,980			18,062
Debt issuance costs		—			1,600
Tax accounting method changes		—			1,278
Other		6,830			4,511


		96,784			92,195


Deferred tax assets:
Net operating loss carryforwards		5,599			4,415
Accrued expenses		13,553			15,573
Deferred benefit plan compensation		8,103			8,363
Provision for doubtful accounts		12,313			7,911
Inventory capitalization and reserves		2,642			2,408
Restricted stock		2,752			2,182
Deferred rent		1,855			1,432
Other		4,711			557


		51,528			42,841
Valuation allowance		(991	)		(691	)


		50,537			42,150


Net deferred tax liabilities	$	46,247		$	50,045

At December 31, 2013 and 2012, the Company had accumulated federal net operating loss carryforwards of $9.9 million, and $7.0 million, respectively, and state net operating loss carryforwards of $45.0 million and $39.8 million, respectively. The federal net operating loss carryforwards expire from 2025 through 2030, and the state net operating loss carryforwards for significant taxing jurisdictions expire from 2023 through 2028. Utilization of the acquired carryforwards is subject to limitations due to ownership changes that may delay or prevent the utilization of a portion of the acquired carryforwards.

The Company establishes valuation allowances when necessary to reduce deferred tax assets to amounts expected to be realized. As of December 31, 2013 and 2012, the Company recorded a valuation allowance of $1.0 million and $0.7 million, respectively, related to state loss carryforwards, which are expected to expire before utilization.

A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:

(In thousands)	2013			2012			2011

Unrecognized tax benefits, at beginning of the year	$	377		$	230		$	420
Additions for tax positions related to the current year		—			107			—
Additions for tax positions of prior years		207			79			—
Decrease related to prior year positions		(107	)		—			(190	)
Decrease for lapse of applicable statute of limitations		—			(39	)		—


Unrecognized tax benefits, at end of the year	$	477		$	377		$	230

As of December 31, 2013, the total amount of unrecognized tax benefits, if recognized, that would affect the effective tax rate is $0.0 million. At December 31, 2013, there were no unrecognized tax benefits that the Company expects would change significantly over the next 12 months.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2013, 2012 and 2011, the amount of accrued interest and penalties was immaterial. The amount of interest and penalties recognized in all periods presented was immaterial.

The Company is subject to income tax in U.S. federal, state and local jurisdictions. The Company is no longer subject to U.S. Federal income tax examinations for years before 2010, and with few exceptions, is no longer subject to state and local income tax examinations by tax authorities for years before 2009. However, due to acquired net operating losses, tax authorities have the ability to adjust those net operating losses related to closed years.