6.	Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31 are as follows:


	2011		2010
Deferred tax assets:
Employee benefits	$	1,501	$	1,590
Inventories		5,797		3,834
Goodwill		2,323		2,805
Other		4,747		2,652

Total deferred tax assets		14,368		10,881

Deferred tax liabilities:
Depreciation		35,402		28,274
Foreign earnings		644		1,509

Total deferred tax liabilities		36,046		29,783

Net deferred tax liabilities	$	21,678	$	18,902

Foreign earnings in the table above are presented net of foreign tax credits of $3,868 and $2,494 as of December 31, 2011 and 2010, respectively, which are expected to be utilized upon repatriation of the foreign earnings.

Significant components of the provision for income taxes for the years ended December 31 are as follows:


	2011		2010		2009
Current:
Federal	$	57,429	$	34,061	$	23,712
State		4,288		3,303		2,080
Foreign		1,374		607		619

Total current		63,091		37,971		26,411
Deferred		4,223		2,662		573

	$	67,314	$	40,633	$	26,984

In China, the Company benefited from a full income tax holiday from the inception of that business through 2004 and a partial tax holiday from 2005 through 2008. However, provision has been made for deferred U.S. income taxes on all foreign earnings based on the Company’s intent to repatriate foreign earnings. The reconciliation of income taxes computed at the U.S. statutory tax rate to the Company’s income tax expense for the years ended December 31 is as follows:


	2011						2010						2009
	Amount			Percent			Amount			Percent			Amount			Percent
U.S. statutory rate	$	69,107			35.0	%	$	41,772			35.0	%	$	27,928			35.0	%
State income taxes, net of federal tax benefit		3,103			1.6			2,148			1.8			1,351			1.7
Mining depletion		(1,162	)		(0.6	)		(1,227	)		(1.0	)		(898	)		(1.1	)
Section 199 Manufacturing Benefit, ETI Exclusion and other		(3,734	)		(1.9	)		(2,060	)		(1.8	)		(1,397	)		(1.8	)

	$	67,314			34.1	%	$	40,633			34.0	%	$	26,984			33.8	%

The Company had a recorded reserve of $227 associated with uncertain tax positions as of December 31, 2011 and there were no significant changes to the recorded reserve during 2011. If these uncertain tax positions are recognized, substantially all of this amount would impact the effective tax rate. Related accrued interest and penalties are recorded in income tax expense and are not material.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates, the most significant of which are U.S. federal and certain state jurisdictions. The Company does not currently have material income tax exposure in foreign jurisdictions due to tax holidays, recent commencement of operations or immaterial operations. The 2005 through 2010 tax years are still subject to examination. Various U.S. state jurisdiction tax years remain open to examination as well though the Company believes assessments, if any, would be immaterial to its consolidated financial statements.