(Dollar and Share Amounts in Thousands except Per Share Information and as Otherwise Noted)  The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December  31 are as follows:  Income Taxes, continued  2004 Notes to Consolidated Financial Statements 8  Acquisition and Disposal of Business  2004 2003 Deferred tax asset (liability):  Inventory costing and valuation methods  $ 2,465 1,781 Allowance for doubtful accounts receivable  2,080 1,559 Insurance claims payable  1,975 841 Fixed assets  (15,156) (13,862) Other, net  448 (27) Net deferred tax liability  $ (8,188) (9,708) No valuation allowance for deferred tax assets was necessary as of December 31, 2004 and 2003. The  character of the deferred tax assets is such that they can be realized through carryback to prior tax periods  or offset against future taxable income.  During 2004, 2003, and 2002, $4,248, $1,973, and $3,428, respectively, were added to additional paid-in  capital reflecting the permanent book to tax difference in accounting for tax benefits related to employee  stock option transactions.  On August 31, 2001, the Company acquired certain assets of two subsidiaries of Textron, Inc. These assets  were used in their business of selling packaged fasteners to the retail market (Do-It-Yourself or DIY  Business). The purchase price consisted of a cash payment and the assumption of certain liabilities at  closing. The acquisition was not material to the financial statements of the Company. The purchase price  was finalized during the second quarter of 2002. The final purchase price resulted in tangible assets in  excess of the cash paid and liabilities assumed, or negative goodwill. The negative goodwill, net of tax, of  $716 was recognized in earnings during the second quarter of 2002 as an extraordinary gain. The net sales from the DIY Business totaled $8,526 from August 31, 2001 through December 31, 2001.  The DIY Business was sold to The Hillman Group, Inc. on October 3, 2002. The net sales from the DIY  Business totaled $16,974 from January 1, 2002 through October 3, 2002. The Company recognized a gain,  before tax, of $5,934 from the sale of the DIY Business during the fourth quarter of 2002.  2004 ANNUAL REPORT – PAGE 30 