Note 7 – Income taxes:

The provision for income taxes and 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% are presented below. All of our pre-tax income relates to operations in the United States.

	Years ended December 31,
	2013			2014			2015
	(In thousands)
Provision for income taxes:
Currently payable	$	2,310		$	4,544		$	4,778
Deferred income tax expense		916			468			125
Total	$	3,226		$	5,012		$	4,903
Expected tax expense, at the U.S. federal statutory income tax rate of 35%	$	3,234		$	4,787		$	4,908
State income taxes		317			604			387
Domestic production activities deduction		(200	)		(378	)		(415	)
Valuation allowance		(102	)		(24	)		-
Other, net		(23	)		23			23
Total	$	3,226		$	5,012		$	4,903

The components of the net deferred tax liability are summarized below.

	December 31,
	2014			2015
	(In thousands)
Tax effect of temporary differences related to:
Inventories	$	835		$	538
Property and equipment		(4,706	)		(4,650	)
Accrued liabilities and other deductible differences		46			45
Accrued employee benefits		1,577			1,695
Other deductible differences		4			4
Goodwill		(2,625	)		(2,625	)
Other taxable differences		(7	)		(8	)
Total deferred tax liability	$	(4,876	)	$	(5,001	)

We previously had certain U.S. state net operating loss carryforwards, the benefit of which we had not recognized under the more-likely-than-not recognition criteria. We utilized a portion of such state net operating loss carryforward in 2013, and all of the remaining carryforward in 2014. Our provision for income taxes includes a benefit of $102,000 in 2013 and $24,000 in 2014 related to changes in deferred tax asset valuation allowance associated with such carryforwards.

We file income tax returns in U.S. federal and various state and local jurisdictions. Our income tax returns prior to 2012 are generally considered closed to examination by applicable tax authorities.