Note I -- Income Taxes

Income tax expense was comprised of the following:


		FISCAL YEARS ENDED APRIL 30
(in thousands)		2014		2013		2012

CURRENT EXPENSE (BENEFIT)
Federal	$	4,825	$	1,031	$	(36)
State		406		162		(176)
Total current expense (benefit)		5,231		1,193		(212)

DEFERRED EXPENSE (BENEFIT)
Federal		6,076		4,859		(10,115)
State		1,902		930		(2,175)
Total deferred expense (benefit)		7,978		5,789		(12,290)
Total expense (benefit)		13,209		6,982		(12,502)
Other comprehensive income (loss)		3,944		(2,905)		(3,624)
Total comprehensive income tax expense (benefit)	$	17,153	$	4,077	$	(16,126)

The Company's effective income tax rate varied from the federal statutory rate as follows:


	FISCAL YEARS ENDED APRIL 30
	2014		2013		2012
Federal statutory rate	35.0	%	35.0	%	35.0	%
Effect of:
Tax basis adjustment	0.0	%	0.0	%	(1.7)	%
Meals and entertainment	0.8		1.5		(0.8)
Domestic production deduction	(1.8)		(0.3)		0.0
Other	0.7		1.4		0.0
Total	(0.3)	%	2.6	%	(2.5)	%

Effective federal income tax rate	34.7	%	37.6	%	32.5	%
State income taxes, net of federal tax effect	4.5		4.1		5.1
Effective income tax rate	39.2	%	41.7	%	37.6	%

Income taxes paid were $4,334,000, $1,219,000 and $229,000 for fiscal years 2014, 2013 and 2012, respectively.

The significant components of deferred tax assets and liabilities were as follows:


		APRIL 30
(in thousands)		2014		2013

Deferred tax assets:
Pension benefits	$	15,381	$	20,563
Accounts receivable		4,603		3,983
Product liability		745		700
Employee benefits		8,523		11,243
Net operating loss carryforward		469		1,099
Income tax credits		0		1,088
Depreciation		0		73
Other		199		496
Total		29,920		39,245

Deferred tax liabilities:
Inventory		496		502
Depreciation		2,374		0
		2,870		502

Net deferred tax asset	$	27,050	$	38,743

The net operating loss carryforward value for April 30, 2014 and 2013 contained in the above table includes amounts pertaining to various state net operating loss carryforwards with various expiration dates.

Management believes it is more likely than not that the Company will realize its gross deferred tax assets due to expected future taxable income and the reversal of taxable temporary differences.