The components of the income tax provision were as follows  (in thousands):  We are subject to income tax in the U.S., multiple state jurisdictions  and a few international jurisdictions, primarily the U.K. and Canada.  We do not consider any state in which we do business to be a  major tax jurisdiction. We remain open to examination in the other  jurisdictions as follows: Canada 2010 – 2012, United Kingdom 2012  and the United States 2009 – 2012. The net deferred income tax asset (liability) was comprised of the  following (in thousands): The tax effect of temporary differences between U.S. GAAP  accounting and federal income tax accounting creating deferred  income tax assets and liabilities was as follows (in thousands): The decrease in the effective tax rate for Fiscal 2013 resulted from  the release of the valuation allowance against deferred tax assets  in Canada. The effective tax rate for the Fiscal 2011 was negatively  impacted by our inability to record a tax benefit related to pre-tax  losses in Canada.  We have not recorded deferred income taxes on $15 million of  undistributed earnings of our foreign subsidiaries because of  management’s intent to indefinitely reinvest such earnings. Upon  distribution of these earnings in the form of dividends or otherwise,  we may be subject to U.S. income taxes and foreign withholding  taxes. It is not practical, however, to estimate the amount of taxes  that may be payable on the eventual remittance of these earnings. A reconciliation of the statutory U.S. income tax rate and the effective  income tax rate, as computed on earnings before income tax  provision in each of the three years presented in the Consolidated  Statements of Operations, was as follows: Income before income taxes was as follows (in thousands): Year Ended September 30, 2013 2012 2011 Current: Federal $ 12,003 $ 18,156 $ 5,470 State 1,813 1,512 939 Foreign 1,562 331 563 15,378 19,999 6,972 Deferred: Federal (447) (1,840) (122) State (105) 25 (76) Foreign (6,170) 393 (62) (6,722) (1,422) (260) Total income tax provision $ 8,656 $ 18,577 $  6,712 September 30, 2013 2012 Current deferred income taxes: Gross assets $ 5,561 $ 7,0 53 Gross liabilities (845) (2,455) Net current deferred income tax asset 4,716 4,598 Noncurrent deferred income taxes: Gross assets 9,025 2,423 Gross liabilities — — Net noncurrent deferred income tax asset 9,025 2,423 Net deferred income tax asset $ 13,741 $  7,021 Year Ended September 30, 2013 2012 2011 Statutory rate 35% 35% 35% State income taxes, net of federal benefit 2 2 14 International withholding tax (1) (1) (9) Other permanent tax items 1 — 5 Foreign rate differential (1) 1 33 Domestic production activities deduction (3) (3) (16) Foreign valuation allowance and other (16) 4 106 Effective rate 17% 38% 168% Year Ended September 30, 2013 2012 2011 U.S. $ 46,905 $ 53,885 $ 19,850 Other than U.S. 3,827 (5,651) (15,853) Income before income taxes $ 50,732 $ 48,234  $ 3,997 September 30, 2013 2012 Deferred Tax Assets: Net operating loss $ 3,892  $ 4,787 Uniform capitalization and inventory 2,510 3,683 Reserve for accrued employee benefits 1,517 1,546 Deferred compensation 1,297 1,013 Goodwill 1,198 1,285 Stock-based compensation 1,291 729 Warranty accrual 1,101 1,336 Workers’ compensation 185 360 Depreciation and amortization 953 1,366 Postretirement benefits liability 396 373 Allowance for doubtful accounts 209 367 Accrued legal 57 114 Other 115 15 Gross deferred tax asset 14,721 16,974 Less: valuation allowance (135) ( 7,49 8) Deferred tax assets 14,586 9,476 Deferred Tax Liabilities: Uncompleted contracts (845) (2,455) Deferred tax liabilities (845) (2,455) Net deferred tax asset $ 13,741 $  7,021 36