5.	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:


	2012		2011
Deferred tax assets:
Employee benefits	$	1,032	$	1,501
Inventories		7,161		5,797
Goodwill		1,842		2,323
Other		3,761		4,747

Total deferred tax assets		13,796		14,368

Deferred tax liabilities:
Depreciation		45,056		35,402
Foreign earnings		2,665		644

Total deferred tax liabilities		47,721		36,046

Net deferred tax liabilities	$	33,925	$	21,678

Foreign earnings in the table above are presented net of foreign tax credits of $4,432 and $3,868 as of December 31, 2012 and 2011, 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:


	2012		2011		2010
Current:
Federal	$	37,596	$	57,429	$	34,061
State		2,268		4,288		3,303
Foreign		1,581		1,374		607

Total current		41,445		63,091		37,971
Deferred		11,212		4,223		2,662

	$	52,657	$	67,314	$	40,633

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:


	2012						2011						2010
	Amount			Percent			Amount			Percent			Amount			Percent
U.S. statutory rate	$	55,507			35.0	%	$	69,107			35.0	%	$	41,772			35.0	%
State income taxes, net of federal tax benefit		2,199			1.4			3,103			1.6			2,148			1.8
Mining depletion		(2,606	)		(1.6	)		(1,162	)		(0.6	)		(1,227	)		(1.0	)
Section 199 Manufacturing Benefit and other		(2,443	)		(1.6	)		(3,734	)		(1.9	)		(2,060	)		(1.8	)

	$	52,657			33.2	%	$	67,314			34.1	%	$	40,633			34.0	%

The Company had a recorded reserve of $227 associated with uncertain tax positions as of December 31, 2012 and there were no significant changes to the recorded reserve during 2012. 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 2009 and subsequent 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.