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:


	2014			2013
Deferred tax assets:
Employee benefits	$	1,440		$	1,757
Inventories		6,966			5,923
Goodwill		874			1,358
Other		2,942			4,438
Foreign losses		4,300			—
Foreign tax assets valuation allowance		(4,300	)		—

Total deferred tax assets		12,222			13,476

Deferred tax liabilities:
Depreciation		81,628			54,973
Foreign earnings		—			1,816

Total deferred tax liabilities		81,628			56,789

Net deferred tax liabilities	$	69,406		$	43,313

Foreign earnings in the table above are presented net of foreign tax credits of $0 and $5,019 as of December 31, 2014 and 2013, respectively, which are expected to be utilized upon repatriation of the foreign earnings. Benefits from foreign tax credits were not recognized in 2014 due to the uncertainty of the Company being able to realize the foreign tax assets associated with foreign investments.

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


	2014		2013		2012
Current:
Federal	$	11,310	$	27,188	$	37,596
State		500		2,164		2,268
Foreign		1,084		842		1,581

Total current		12,894		30,194		41,445
Deferred		24,389		10,121		11,212

	$	37,283	$	40,315	$	52,657

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:


	2014						2013						2012
	Amount			Percent			Amount			Percent			Amount			Percent
U.S. statutory rate	$	32,505			35.0	%	$	43,820			35.0	%	$	55,507			35.0	%
State income taxes, net of federal tax benefit		1,882			2.0			2,097			1.7			2,199			1.4
Mining depletion		(3,035	)		(3.3	)		(2,751	)		(2.2	)		(2,606	)		(1.6	)
Foreign tax assets valuation allowance		4,300			4.6			—			—			—			—
Non-recognized benefit on foreign investments		2,980			3.2			—			—			—			—
Section 199 Manufacturing Benefit and other		(1,349	)		(1.4	)		(2,851	)		(2.3	)		(2,443	)		(1.6	)

	$	37,283			40.1	%	$	40,315			32.2	%	$	52,657			33.2	%

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 Company did not recognize benefits on foreign investments of $2,980 and recorded a $4,300 valuation allowance during the fourth quarter of 2014 due to the uncertainty of the Company being able to realize the foreign tax assets in light of current market conditions in China.

The Company elected to claim bonus tax depreciation totaling $61,781 on assets placed in service in the United States during 2014. This election reduced current taxable income, which reduced current income tax expense, increased deferred income tax expense, and reduced the Section 199 Manufacturing Benefit. The Company did not claim bonus depreciation on assets placed in service during 2013 or 2012.

The Company had a recorded reserve of $153 associated with uncertain tax positions as of December 31, 2014 and there were no significant changes to the recorded reserve during 2014. 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 2011 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.