INCOME TAXES

The provision for income taxes in the Consolidated Statements of Income was as follows for the years ended December 31:



(In thousands)	2014			2013		2012
Current:
Federal	$	32,142		$	23,430	$	17,483
State	6,142			4,129		3,647
Total current provision	$	38,284		$	27,559	$	21,130
Deferred:
Federal	$	(4,545	)	$	68	$	(298	)
State	(948		)	201		(370		)
Total deferred provision	$	(5,493	)	$	269	$	(668	)
Provision for income taxes	$	32,791		$	27,828	$	20,462

The provision for income taxes differs from the amount computed by applying the federal statutory rate to income before income taxes for the following reasons for the years ended December 31:



(In thousands)	2014			2013			2012
Income tax at federal statutory rate	$	33,270		$	27,281		$	20,231
State income tax, net of federal income tax impact	3,376			2,815			2,130
Manufacturing credit pursuant to Jobs Creation Act	(2,258		)	(1,444		)	(1,101		)
Other	(1,597		)	(824		)	(798		)
Provision for income taxes	$	32,791		$	27,828		$	20,462

At December 31, 2014, federal income taxes receivable of $1.3 million were included in prepaid expenses and other current assets, and state income taxes payable of $0.8 million were included in accrued expenses and other current liabilities. At December 31, 2013, federal and state income taxes receivable of $3.7 million were included in prepaid expenses and other current assets.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31:



(In thousands)	2014			2013
Deferred tax assets:
Goodwill and other intangible assets	$	14,066		$	15,024
Stock-based compensation	7,172			5,116
Deferred compensation	5,040			3,722
Warranty	7,845			3,477
Inventory	3,897			3,245
Other	3,189			4,048
Total deferred tax assets	41,209			34,632
Deferred tax liabilities:
Fixed assets	(10,756		)	(9,839		)
Net deferred tax assets	$	30,453		$	24,793

The Company concluded it is more likely than not that the deferred tax assets at December 31, 2014 will be realized in the ordinary course of operations based on projected future taxable income and scheduling of deferred tax liabilities.

Excess tax benefits on stock-based compensation of $3.9 million, $1.5 million and $0.3 million were credited directly to stockholders' equity during the years ended December 31, 2014, 2013 and 2012, respectively, relating to tax benefits which exceeded the compensation cost for stock-based compensation recognized in the Consolidated Financial Statements.

At December 31, 2014, the remaining pool of excess tax benefits from prior exercises of stock-based compensation in stockholders’ equity was $15.3 million.

Unrecognized Tax Benefits

The following table reconciles the total amounts of unrecognized tax benefits, at December 31:



(In thousands)	2014			2013			2012
Balance at beginning of period	$	1,369		$	1,701		$	2,185
Changes in tax positions of prior years	84			(29		)	(297		)
Additions based on tax positions related to the current year	603			676			385
Payments	—			(126		)	—
Closure of tax years	(530		)	(853		)	(572		)
Balance at end of period	$	1,526		$	1,369		$	1,701

In addition, the total amount of accrued interest and penalties related to taxes was $0.2 million, $0.2 million and $0.4 million at December 31, 2014, 2013 and 2012, respectively.

The total amount of unrecognized tax benefits, net of federal income tax benefits, of $1.2 million, $1.0 million and $1.2 million at December 31, 2014, 2013 and 2012, respectively, would, if recognized, increase the Company’s earnings, and lower the Company’s annual effective tax rate in the year of recognition.

The Company periodically undergoes examinations by the Internal Revenue Service (“IRS”), as well as various state taxing authorities. The IRS and other taxing authorities may challenge certain deductions and positions reported by the Company on its income tax returns. For federal income tax purposes, the tax years 2011 through 2013 remain subject to examination. For Indiana state income tax purposes, the tax years 2011 through 2013 remain subject to examination. Approximately 80 percent of the Company’s operations are located in Indiana.

The Company has assessed its risks associated with all tax return positions, and believes its tax reserve estimates reflect its best estimate of the deductions and positions it will be able to sustain, or it may be willing to concede as part of a settlement. At this time, the Company cannot estimate the range of reasonably possible change in its tax reserve estimates in 2015. While these tax matters could materially affect operating results when resolved in future periods, it is management’s opinion that after final disposition, any monetary liability or financial impact to the Company beyond that provided for in the Consolidated Balance Sheet as of December 31, 2014, would not be material to the Company’s financial position or annual results of operations.