Notes to Consolidated Financial Statements

6. INCOME TAXES

The components of total income (loss) from operations (including continuing extraordinary items) before income taxes were (in thousands):

2001
 		 2000 1999
Domestic $ (51,288 ) $ 16,008 $ 23,689
Foreign (32,534 ) (5,378 ) (708 )
Total $ (83,822 ) $ 10,630 $ 22,981

The provision (benefit) for income taxes is summarized below (in thousands):

2001 2000 1999
Currently payable (receivable):
Federal $   (5,600 ) $ 3,285 $ 3,771
Foreign 105 1,318 -
State 452 419 587
(5,043 ) 5,022 4,358
Deferred (15,455 ) (988 ) 4,814
Valuation allowance 9,646 - -
(5,809 ) (988 ) 4,814
Total $ (10,852 ) $ 4,034 $ 9,172

The provision (benefit) for income taxes is allocated between continuing operations and extraordinary items as summarized below (in thousands):

2001
 		 2000 1999
Continuing $ (10,852 ) $ 4,373 $ 9,704
Extraordinary Total - (339 ) (532 )
$ (10,852 ) $ 4,034 $ 9,172

The consolidated effective tax rates for continuing operations differ from the federal statutory rates as follows:

2001
 		 2000 1999
Statutory federal rate (35.0 %) 35.0 % 35.0 %
State income taxes after
federal income tax		 (2.0 ) 5.2 4.9
Earnings of the foreign
sales corporation		 - (9.1 ) (3.4 )
Amortization of purchase
price of businesses not
deductible for tax purposes		 14.0 5.2 2.3
Foreign rate differential 4.7 3.2 1.0
Valuation allowance 11.5 - -
Investment write-offs (9.5 ) - -
AMT credit (.5 ) - -
Other 3.9 (1.5 ) 0.2
Consolidated effective tax rate (12.9 %) 38.0 % 40.0 %


The following is an analysis of accumulated deferred income taxes (in thousands):

2001 2000
Assets:
Current:
Bad debts		 $ 408 $ -
Employee benefit accruals 884 829
Inventory 680 56
Net operating loss carryforward 100 796
Other (560 ) 191
Total current 1,512 1,872
Noncurrent:
Employee benefit accruals		 754 666
Environmental 389 583
Accrued liabilities 984 2,046
AMT credit 453 -
Net operating loss carryforward 16,818 4,531
Other 1,608 2,161
Valuation allowance (9,646 ) -
Total noncurrent 11,360 9,987
Total assets $ 12,872 $ 11,859
Liabilities:
Property		 $ 5,298 $ 9,858
Other - 2,015
Total liabilities $ 5,298 $ 11,873


The cumulative amount of undistributed earnings of international subsidiaries for which U.S. income taxes have not been provided was approximately $4.9 million at March 31, 2001. It is not practical to estimate the amount of unrecognized deferred U.S. taxes on these undistributed earnings.

The valuation allowance required under Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes," has been established for deferred income tax benefits related to certain foreign subsidiary loss carryforwards that may not be realized.

The Company has federal, state and foreign net operating loss carryforwards of $12.0 million, $26.0 million and $32.0 million, respectively, which will be available to offset taxable income during the carryforward period (through 2021). The tax benefits of these items are reflected in the above analysis of deferred tax assets and liabilities. If not used, some of these carryforwards begin to expire in 2004..

The Company also has an alternative minimum tax credit carryforward of approximately $0.5 million which can be carried forward indefinitely.