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Income Taxes (Notes)
 12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The components of income before income taxes are as follows:

    
 
2014
 
2013
 
2012
Domestic
$
85,988

 
$
125,772

 
$
123,691

Foreign
85,405

 
83,179

 
60,496

 
$
171,393

 
$
208,951

 
$
184,187



The income tax provision (benefit) consists of the following:
    
 
2014
 
2013
 
2012
Current:
 
 
 
 
 
Federal
$
29,933

 
$
41,334

 
$
41,280

State and local
4,244

 
11,265

 
10,319

Foreign
15,167

 
14,385

 
11,035

 
49,344

 
66,984

 
62,634

Deferred:
 
 
 
 
 
Federal
10,229

 
8,815

 
2,272

State and local
(2,014
)
 
(667
)
 
(396
)
       Foreign
1,205

 
534

 
113

 
9,420

 
8,682

 
1,989

 
$
58,764

 
$
75,666

 
$
64,623



A reconciliation between taxes computed at the federal statutory rate and the effective tax rate is as follows:
    
 
December 31,
 
2014
 
2013
 
2012
Income taxes at federal statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
Effects of foreign operations
(2.7
)
 
(1.7
)
 
(3.3
)
State and local income taxes - net of federal income tax benefit
1.1

 
3

 
3.4

Nondeductible items
0.2

 
0.1

 
0.1

Valuation allowance (reversal)
(0.1
)
 
—

 
(0.3
)
Other
0.8

 
(0.2
)
 
0.2

Effective rate
34.3
 %
 
36.2
 %
 
35.1
 %


The Company applies the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse.

Note N - Income Taxes (continued)

In accordance with accounting guidance, the Company has opted to classify interest and penalties that would accrue according to the provisions of relevant tax law as income tax expense on the Consolidated Statements of Income. The Company determines the amount of interest expense to be recognized by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken on a tax return. The Company's tax years 2011 through 2014 remain open to examination by most taxing authorities. The Company has no unrecognized tax benefits recorded as of December 31, 2014 and 2013.

The components of deferred tax assets and liabilities are as follows:    
 
December 31,
 
2014
 
2013
Current deferred tax assets (liabilities):
 
 
 
Receivable allowances
$
8,663

 
$
8,024

Inventory
2,119

 
1,932

Unrealized (gain) loss
955

 
(23
)
Accrued expenses
798

 
499

Other
1,590

 
1,835

Gross current deferred tax asset
14,125

 
12,267

 
 
 
 
Non-current deferred tax assets (liabilities):
 
 
 
Depreciation and amortization
(10,122
)
 
(5,033
)
Deferred compensation
14,146

 
10,827

Unremitted earnings of foreign subsidiaries
(29,268
)
 
(20,748
)
Deferred rent
4,134

 
3,741

Amortization of goodwill
(3,858
)
 
(3,293
)
 Unrealized loss (gain)
222

 
1,226

Other
40

 
56

 
(24,706
)
 
(13,224
)
Net deferred tax (liabilities) assets
$
(10,581
)
 
$
(957
)


The Company's consolidated financial statements provide for any related tax liability on amounts that may be repatriated from foreign operations, aside from undistributed earnings of certain of the Company's foreign subsidiaries that are intended to be indefinitely reinvested in operations outside the U.S. The deferred tax liability of $29,268 and $20,748 for the years ended December 31, 2014 and 2013, respectively, reflects the amounts that may be repatriated from foreign operations. The total amount of indefinitely reinvested earnings of foreign subsidiaries as of December 31, 2014 and 2013 was $64,147 and $42,750, respectively. Accordingly, no provision has been made for United States income taxes that may become payable if those undistributed earnings of foreign subsidiaries are paid as dividends. If such amounts were not indefinitely reinvested, the Company would incur approximately $11,867 in taxes that were not previously provided for in our consolidated statements of income.