10.

Income Taxes

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2010.

The federal and state income tax provision consisted of the following:

Year ended December 31,	2014					2013				2012
		Current		Deferred			Current		Deferred		Current		Deferred
Federal	$	25,797	$	(10,429	)	$	49,022	$	4,879	$	34,941	$	(327	)
State		5,019		(1,775	)		9,202		857		6,635		231
	$	30,816	$	(12,204	)	$	58,224	$	5,736	$	41,576	$	(96	)

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

Year ended December 31,	2014			2013			2012
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		3.7			3.7			4.0
Domestic production activities deduction		(4.6	)		(2.7	)		(3.0	)
Other items		(1.6)			0.5			1.0
Effective income tax rate		32.5	%		36.5	%		37.0	%

Significant components of the Company's deferred tax assets and liabilities are as follows:

December 31,	2014			2013
Deferred tax assets:
Product liability	$	289		$	451
Employee compensation and benefits		3,621			3,708
Allowances for doubtful accounts and discounts		2,351			2,558
Inventories		1,411			932
Additional minimum pension liability		-			10,905
Stock-based compensation		4,517			3,672
Other		1,487			1,853
Total deferred tax assets		13,676			24,079
Deferred tax liabilities:
Pension plans		-			11,310
Depreciation		14,377			14,311
Other		387			422
Total deferred tax liabilities		14,764			26,043
Net deferred tax (liabilities) assets	$	(1,088	)	$	(1,964	)

Changes in deferred tax assets relating to the additional minimum pension liability are not charged to expense and are therefore not included in the deferred tax provision; instead they are charged to other comprehensive income.

The Company made income tax payments of approximately $34.0 million, $59.9 million, and $33.0 million, during 2014, 2013, and 2012, respectively. The Company expects to realize its deferred tax assets through tax deductions against future taxable income or carry back against taxes previously paid.

The Company does not believe it has included any “uncertain tax positions” in its federal income tax return or any of the state income tax returns it is currently filing. The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which the Company does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result in a material change to its financial position.