Income Taxes

The components of income (loss) before income taxes are as follows:



	Year Ended December 31,
	2013			2012			2011
Domestic	$	944,378		$	586,631		$	404,422
Foreign	(2,206		)	(1,462		)	(2,990		)
	$	942,172		$	585,169		$	401,432

The Company's provision for (benefit from) income taxes consists of the following:



	Year Ended December 31,
	2013			2012			2011
Current
Federal	$	215,903		$	190,917		$	120,018
State	22,249			15,327			8,729
Foreign	(137		)	(837		)	(395		)
	238,015			205,407			128,352
Deferred
Federal	94,471			(5,398		)	6,732
State	(556		)	(519		)	7,682
Foreign	(183		)	124			(300		)
	93,732			(5,793		)	14,114
Total provision	$	331,747		$	199,614		$	142,466

A reconciliation of taxes computed at the statutory rate to the Company's income tax expense is as follows:



	Year Ended December 31,
	2013			2012			2011
Provision for federal income tax, at statutory rate	$	329,760		$	204,809		$	140,501
State income tax provision, net of federal income tax effect	14,364			9,625			10,745
Foreign tax	(253		)	(713		)	(695		)
Foreign losses	772			512			1,047
Manufacturing deduction	(16,275		)	(14,560		)	(9,905		)
Contingent tax liability	(404		)	—			(20		)
Other, net	3,783			(59		)	793
	$	331,747		$	199,614		$	142,466

The tax effects of the principal temporary differences between financial reporting and income tax reporting at December 31 are as follows:



	2013			2012
Net operating loss carryforward	$	11,324		$	11,922
Credit carryforward	708			782
Accruals	32,352			32,486
Allowance for doubtful accounts	2,068			1,540
Inventories	15,440			7,831
Other	6,666			4,704
Deferred taxes assets—total	68,558			59,265
Property, plant and equipment	(434,561		)	(340,237		)
Turnaround costs	(26,002		)	(10,858		)
Other	(478		)	(228		)
Deferred tax liabilities—total	(461,041		)	(351,323		)
Valuation allowance	(11,324		)	(11,927		)
Total net deferred tax liabilities	$	(403,807	)	$	(303,985	)

Balance sheet classifications
Current deferred tax asset	$	34,169		$	22,305
Noncurrent deferred tax liability	(437,976		)	(326,290		)
Total net deferred tax liabilities	$	(403,807	)	$	(303,985	)

At December 31, 2013, the Company had foreign and state net operating loss carryforwards of approximately $261,091, which will expire in varying amounts between 2014 and 2032 and are subject to certain limitations on an annual basis. Management believes the Company will realize the benefit of the net operating loss carryforwards before they expire, but to the extent that the full benefit may not be realized, a net operating loss valuation allowance has been recorded. The valuation allowance decreased by $603 in 2013 due to the utilization of state net operating loss carryforwards.

Undistributed income of the Company's foreign corporate joint venture and foreign subsidiaries at December 31, 2013 amounted to $14,889, for which no U.S. deferred income tax provision has been recorded because the Company intends to permanently reinvest such income in those foreign operations. If such income was not permanently reinvested, income tax expense of approximately $5,509 would be recorded, not including potential utilization of foreign tax credits.

The gross unrecognized tax benefits at December 31 are as follows:



	2013			2012		2011
Beginning balance	$	3,122		$	3,122	$	3,141
Reductions due to statutes of limitations expiring	(621		)	—		(19		)
Ending balance	$	2,501		$	3,122	$	3,122

Management anticipates that all of the gross unrecognized tax benefits will be recognized within the next twelve months and the effective tax rate impact is expected to be immaterial.

The Company recognizes penalties and interest accrued related to unrecognized tax benefits in income tax expense. As of December 31, 2013, the Company had no material accrued interest and penalties related to uncertain tax positions.

The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is no longer subject to examinations by tax authorities before the year 2007.