Note 9 – Income taxes:

The provision for income taxes attributable to continuing operations, the difference between such provision for income taxes and the amount that would be expected using the U.S. federal statutory income tax rate of 35%, and the comprehensive provision for income taxes are presented below. All of our pre-tax income attributable to continuing operations relates to operations in the United States.

	Years ended December 31,
	2012			2013			2014
	(In thousands)
Provision for income taxes:
Currently payable	$	1,633		$	2,310		$	4,544
Deferred income tax expense (benefit)		(218	)		916			468
Total	$	1,415		$	3,226		$	5,012
Expected tax expense, at the U.S. federal statutory income tax rate of 35%	$	1,729		$	3,234		$	4,787
State income taxes and other, net		173			294			627
Tax credits		(170	)		(200	)		(378	)
Valuation allowance		(317	)		(102	)		(24	)
Total	$	1,415		$	3,226		$	5,012
Comprehensive provision for income tax allocable to:
Income from continuing operations	$	1,415		$	3,226		$	5,012
Discontinued operations		5,397			-			-
Total	$	6,812		$	3,226		$	5,012

The components of net deferred tax assets (liabilities) are summarized below.

	December 31,
	2013			2014
	(In thousands)
Tax effect of temporary differences related to:
Inventories	$	932		$	835
Property and equipment		(4,348	)		(4,706	)
Accrued liabilities and other deductible differences		63			46
Accrued employee benefits		1,513			1,577
Tax loss and credit carryforwards		28			4
Goodwill		(2,559	)		(2,625	)
Other taxable differences		(12	)		(7	)
Valuation allowance		(24	)		-
Total	$	(4,407	)	$	(4,876	)
Net current deferred tax assets		2,493			2,444
Net noncurrent deferred tax liabilities		(6,900	)		(7,320	)
Total	$	(4,407	)	$	(4,876	)

Our tax loss and credit carryforwards at December 31, 2014 relate to a U.S. federal research and development credit carryforward. At December 31, 2013, we concluded that the benefit associated with a portion of our U.S. state net operating loss did not meet the more-likely-than-not recognition criteria, accordingly we recognized a deferred income tax asset valuation allowance of $24,000 at December 31, 2013 with respect to such carryforwards. We utilized all of our state net operating losses in 2014, and consequently we reversed the remaining portion of our income tax valuation allowance. Our provision for income taxes attributable to continuing operations includes a benefit of $317,000 in 2012, $102,000 in 2013 and $24,000 in 2014 related to changes in such valuation allowance.

We file income tax returns in U.S. federal and various state and local jurisdictions. Prior to 2012, we also filed income tax returns in various foreign jurisdictions, principally in Canada and Taiwan. Our domestic income tax returns prior to 2011 are generally considered closed to examination by applicable tax authorities.