Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Earnings from Continuing Operations Before Income Taxes and Noncontrolling Interests

Components of earnings from continuing operations before income taxes and noncontrolling interests are as follows (in thousands):

Year Ended December 31,	2012		2011		2010
United States	$	854,705	$	1,241,465	$	260,794
Foreign		(1,765)		10,347		6,321
	$	852,940	$	1,251,812	$	267,115

Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2012				2011				2010
Current:
Federal		$	261,552			$	329,076			$	(66,462	)
State			20,337				1,685				(19,297	)
Foreign			3,199				2,016				8,289
Total current			285,088				332,777				(77,470	)
Deferred:
Federal			(23,052	)			55,124				138,662
State			(10,440	)			10,400				12,223
Foreign			8,218				(7,473	)			(12,623	)
Total deferred			(25,274	)			58,051				138,262
Total provision for income taxes		$	259,814			$	390,828			$	60,792

Reconciliation of the Federal Statutory Tax Rate to Total Provisions

A reconciliation of the federal statutory tax rate (35%) to the total provision is as follows:

	Year Ended December 31,
	2012		2011			2010
Taxes computed at statutory rate		35.00%		35.00%			35.00%
State income taxes, net of federal income tax benefit		0.75		0.63			(1.72	)
Federal research credit		-		(0.28	)		(1.19	)
Domestic manufacturing deduction		(3.25)		(2.21	)		-
Equity in losses of foreign joint ventures		1.43		0.64			3.09
Foreign rate differential		0.60		(0.92	)		(3.83	)
Noncontrolling interests		(3.64)		(2.32	)		(9.47	)
Other, net		(0.43)		0.68			0.88
Provision for income taxes		30.46%		31.22%			22.76%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities resulted from the following (in thousands):

	December 31,
	2012			2011
Deferred tax assets:
Accrued liabilities and reserves	$	108,287		$	115,752
Allowance for doubtful accounts		14,212			14,088
Inventory		174,499			142,236
Post-retirement benefits		11,119			8,260
Natural gas hedges		221			22,433
Net operating loss carryforward		15,033			25,739
Cumulative translation adjustments		-			2,254
Tax credit carryforwards		28,600			39,700
Total deferred tax assets		351,971			370,462
Deferred tax liabilities:
Holdbacks and amounts not due under contracts		(17,523	)		(9,406	)
Cumulative translation adjustments		(1,600	)		-
Intangibles		(233,413	)		(236,627	)
Property, plant and equipment		(475,176	)		(461,915	)
Total deferred tax liabilities		(727,712	)		(707,948	)
Total net deferred tax liabilities	$	(375,741	)	$	(337,486	)

Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits recorded in deferred credits and other liabilities is as follows (in thousands):

	December 31,
	2012				2011				2010
Balance at beginning of year		$	80,897			$	92,752			$	108,587
Additions based on tax positions related to current year			9,456				6,733				1,983
Reductions based on tax positions related to current year			(132	)			(3,160	)			(1,358	)
Additions based on tax positions related to prior years			5,821				937				5,705
Reductions based on tax positions related to prior years			(3,296	)			(2,169	)			(4,046	)
Additions due to settlements with taxing authorities			-				-				2,363
Reductions due to settlements with taxing authorities			(764	)			(958	)			(3,246	)
Reductions due to statute of limitations lapse			(11,120	)			(13,238	)			(17,236	)
Balance at end of year		$	80,862			$	80,897			$	92,752