Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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,	2013		2012			2011
United States	$	755,921	$	854,705		$	1,241,465
Foreign		35,202		(1,765	)		10,347
	$	791,123	$	852,940		$	1,251,812

Provision for Income Taxes

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

	Year Ended December 31,
	2013			2012			2011
Current:
Federal	$	138,343		$	261,552		$	329,076
State		223			20,337			1,685
Foreign		10,464			3,199			2,016
Total current		149,030			285,088			332,777
Deferred:
Federal		36,157			(23,052	)		55,124
State		(39	)		(10,440	)		10,400
Foreign		20,446			8,218			(7,473	)
Total deferred		56,564			(25,274	)		58,051
Total provision for income taxes	$	205,594		$	259,814		$	390,828

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,
	2013			2012			2011
Taxes computed at statutory rate		35.00	%		35.00	%		35.00	%
State income taxes, net of federal income tax benefit		0.02			0.75			0.63
Federal research credit		(0.79	)		—			(0.28	)
Domestic manufacturing deduction		(1.74	)		(3.25	)		(2.21	)
Equity in losses of foreign joint ventures		1.36			1.43			0.64
Foreign rate differential		(2.35	)		0.60			(0.92	)
Noncontrolling interests		(4.32	)		(3.64	)		(2.32	)
Out of period correction to deferred taxes		(2.57	)		—			—
Other, net		1.38			(0.43	)		0.68
Provision for income taxes		25.99	%		30.46	%		31.22	%

Deferred Tax Assets and Liabilities

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

	December 31,
	2013			2012
Deferred tax assets:
Accrued liabilities and reserves	$	102,933		$	108,287
Allowance for doubtful accounts		19,756			14,212
Inventory		206,826			174,499
Post-retirement benefits		6,268			11,119
Natural gas hedges		—			221
Net operating loss carryforward		12,859			15,033
Tax credit carryforwards		56,185			28,600
Total deferred tax assets		404,827			351,971
Deferred tax liabilities:
Holdbacks and amounts not due under contracts		(16,582	)		(17,523	)
Cumulative translation adjustments		(1,403	)		(1,600	)
Commodity hedges		(805	)		—
Intangibles		(210,791	)		(233,413	)
Property, plant and equipment		(610,451	)		(475,176	)
Total deferred tax liabilities		(840,032	)		(727,712	)
Total net deferred tax liabilities	$	(435,205	)	$	(375,741	)

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,
	2013			2012			2011
Balance at beginning of year	$	80,862		$	80,897		$	92,752
Additions based on tax positions related to current year		4,849			9,456			6,733
Reductions based on tax positions related to current year		(55	)		(132	)		(3,160	)
Additions based on tax positions related to prior years		2,307			5,821			937
Reductions based on tax positions related to prior years		(6,248	)		(3,296	)		(2,169	)
Reductions due to settlements with taxing authorities		—			(764	)		(958	)
Reductions due to statute of limitations lapse		(15,740	)		(11,120	)		(13,238	)
Balance at end of year	$	65,975		$	80,862		$	80,897