Income Taxes

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



	Year Ended December 31,
	2014			2013			2012
Domestic	$	1,102,101		$	944,378		$	586,631
Foreign	(18,183		)	(2,206		)	(1,462		)
	$	1,083,918		$	942,172		$	585,169

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



	Year Ended December 31,
	2014			2013			2012
Current
Federal	$	300,610		$	215,903		$	190,917
State	37,351			22,249			15,327
Foreign	1,974			(137		)	(837		)
	339,935			238,015			205,407
Deferred
Federal	40,950			94,471			(5,398		)
State	22,714			(556		)	(519		)
Foreign	(4,697		)	(183		)	124
	58,967			93,732			(5,793		)
Total provision	$	398,902		$	331,747		$	199,614

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



	Year Ended December 31,
	2014			2013			2012
Provision for federal income tax, at statutory rate	$	379,371		$	329,760		$	204,809
State income tax provision, net of federal income tax effect	40,012			14,364			9,625
Foreign income tax rate differential	3,640			519			(201		)
Manufacturing deduction	(24,465		)	(16,275		)	(14,560		)
Contingent tax liability	(1,626		)	(404		)	—
Noncontrolling interests	(2,255		)	—			—
Other, net	4,225			3,783			(59		)
	$	398,902		$	331,747		$	199,614

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



	2014			2013
Net operating loss carryforward	$	18,200		$	11,324
Credit carryforward	694			708
Accruals	62,845			32,352
Allowance for doubtful accounts	1,998			2,068
Inventories	11,437			15,440
Other	7,660			6,666
Deferred taxes assets—total	102,834			68,558
Property, plant and equipment	(398,683		)	(434,561		)
Turnaround costs	(2,289		)	(26,002		)
Basis difference—consolidated partnerships	(194,480		)	—
Other	—			(478		)
Deferred tax liabilities—total	(595,452		)	(461,041		)
Valuation allowance	(11,011		)	(11,324		)
Total net deferred tax liabilities	$	(503,629	)	$	(403,807	)

Balance sheet classifications
Current deferred tax asset	$	32,437		$	34,169
Noncurrent deferred tax liability	(536,066		)	(437,976		)
Total net deferred tax liabilities	$	(503,629	)	$	(403,807	)

At December 31, 2014, the Company had foreign and state net operating loss carryforwards of approximately $300,674, which will expire in varying amounts between 2015 and 2033 and are subject to certain limitations on an annual basis. Management believes the Company will realize the benefit of a portion 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 $313 in 2014 due to the utilization of state net operating loss carryforwards.

As of December 31, 2013, the Company had intended to permanently reinvest earnings from its foreign joint venture and foreign subsidiaries and therefore, in accordance with applicable rules, did not record U.S. deferred income taxes on unremitted income from those foreign sources. As a result of the acquisition of Vinnolit Holdings GmbH and its subsidiary companies and the formation and initial public offering of Westlake Partners, the Company no longer has such intention. Therefore, as of December 31, 2014, all required income tax consequences have been considered on such income in accordance with current applicable rules.

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



	2014			2013			2012
Beginning balance	$	2,501		$	3,122		$	3,122
Reductions due to statutes of limitations expiring	(2,501		)	(621		)	—
Ending balance	$	—		$	2,501		$	3,122

All of the gross unrecognized tax benefits of $2,501 were recognized at December 31, 2014. The effective tax rate impact is immaterial. The Company recognizes penalties and interest accrued related to unrecognized tax benefits in income tax expense.

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 2008.