(8)	Income Taxes

Total income tax expense (benefit) for the years ended December 31 was comprised of the following:

	2011 Restated			2010 Restated			2009 Restated
Continuing operations	$	20,786		$	20,302		$	5,363
Discontinued operations		(597	)		(735	)		175
		20,189			19,567			5,538

Income from continuing operations before income taxes and income (loss) from affiliates and joint ventures was comprised of the following:

	2011 Restated		2010 Restated		2009 Restated
Income from continuing operations before income taxes and income (loss) from affiliates and joint ventures:
Domestic	$	53,803	$	43,590	$	16,272
Foreign		21,446		17,079		20,763
		75,249		60,669		37,035

The components of the provision for income taxes attributable to income from continuing operations before income taxes and income (loss) from affiliates and joint ventures for the years ended December 31 consisted of:

	2011 Restated			2010 Restated		2009 Restated
Provision (benefit) for income taxes:
Federal:
Current	$	5,167		$	7,406	$	(1,683	)
Deferred		6,420			2,077		3,710
State:
Current		2,958			2,420		428
Deferred		376			35		257
Foreign:
Current		7,974			7,343		4,179
Deferred		(2,109	)		1,021		(1,528	)
		20,786			20,302		5,363

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of December 31 were as follows:

	2011 Restated			2010 Restated
Deferred tax assets attributable to:
Accounts receivable	$	1,107		$	1,345
Inventories		1,701			2,513
Employee benefit plans		25,638			19,070
Accrued liabilities		534			763
Employee incentive plans		1,305			-
Tax credit carryforwards		7,208			3,029
Available-for-sale securities		2,759			-
Other		734			6,265
Total deferred tax assets		40,986			32,985
Deferred tax liabilities attributable to:
Plant and equipment		(17,593	)		(10,910	)
Land and mineral reserves		(13,492	)		(16,774	)
Joint ventures		(1,797	)		(1,541	)
Available-for-sale securities		-			(1,035	)
Intangible assets		(1,692	)		(694	)
Other		(550	)		-
Total deferred tax liabilities		(35,124	)		(30,954	)

Valuation allowances		(6,750	)		(3,932	)

Net deferred tax asset (liability)		(888	)		(1,901	)

We believe it is more likely than not that the net deferred tax assets above will be realized in the normal course of business.

The following analysis reconciles the U.S. statutory federal income tax rate to the effective tax rates related to income from continuing operations before income taxes and equity income (loss) of affiliates and joint ventures:

	2011 Restated						2010 Restated						2009 Restated
	Amount			Percent of Pretax Income			Amount			Percent of Pretax Income			Amount			Percent of Pretax Income
Provision for income taxes at
U.S. statutory rates	$	26,337			35.0	%	$	21,234			35.0	%	$	12,962			35.0	%
Increase (decrease) in taxes resulting from:
Percentage depletion		(4,900	)		-6.5	%		(3,870	)		-6.4	%		(3,257	)		-8.8	%
State taxes, net of federal benefit		2,185			2.9	%		1,546			2.6	%		754			2.0	%
Foreign tax rates		(1,045	)		-1.4	%		(924	)		-1.5	%		(4,356	)		-11.7	%
Change in reserve for tax uncertainties		(710	)		-0.9	%		64			0.1	%		(2,741	)		-7.4	%
Audit settlement		(118	)		-0.1	%		-			0.0	%		2,083			5.6	%
Discrete items related to foreign tax filings		(210	)		-0.3	%		178			0.3	%		-			0.0	%
Foreign tax credits		(2,359	)		-3.1	%		(2,178	)		-3.6	%		(879	)		-2.4	%
Changes to valuation allowance		(216	)		-0.3	%		3,354			5.6	%		28			0.1	%
Tax from foreign disregarded entities		262			0.3	%		1,358			2.2	%		142			0.4	%
Other		1,560			2.0	%		(460	)		-0.8	%		627			1.7	%
		20,786			27.6	%		20,302			33.5	%		5,363			14.5	%

Percentage Depletion

Depletion deductions are federal income tax deductions that arise from extracting minerals from the ground. There are two methods of calculating depletion: cost depletion and percentage depletion. Cost depletion deduction is similar to depreciation in that it allows us to recover the cost of an asset over the resources' productive life. Percentage depletion deduction is computed on the basis of the income from the property rather than capitalization costs. It is different from depreciation and cost depletion deductions, however, in that percentage depletion deduction is a permanent book to tax difference, whereas depreciation and cost depletion deductions are temporary in nature. Hence, percentage depletion deduction affects the effective tax rate whereas deprecation and cost depletion deductions do not. We calculate depletion under the percentage depletion method based upon revenues and costs from our mining activities in the U.S.

Tax on Reinvested Earnings

We have not provided for United States federal income tax and foreign income withholding taxes on approximately $113,646 and $121,620 of undistributed earnings from international subsidiaries as of December 31, 2011 and 2010, respectively, because such earnings are intended to be reinvested indefinitely outside of the U.S. If these earnings were distributed, foreign tax credits may become available under current law to reduce or eliminate the resulting income tax liability in the United States.

Tax Holidays

We have benefitted from tax holidays in both Poland and Thailand as a result of our locating and investing in special economic zones in each country. These tax holidays resulted in reductions to our income tax expense of $106, $464 and $1,559 in 2011, 2010 and 2009, respectively, representing benefits of $0.00, $0.01 and $0.05 to diluted earnings per share in 2011, 2010 and 2009, respectively.

Our agreement with the Polish tax authorities expired in 2010. This agreement made us eligible, based on certain terms and conditions, for a tax holiday exemption for all income tax activities through 2009. We continue to pursue other opportunities in an effort to minimize income tax within the country.

Our agreement with the Thai tax authorities provides for tax holidays on several investments. The most significant tax exemption is on all income from manufacturing operations (distributed goods are still subject to taxation) related to our initial investment. These initial manufacturing activities were taxable at 50% in years 2006 through 2010. An additional tax holiday was granted in 2007 for the expansion of our Thai facility. Income generated from this expansion is granted a 100% tax holiday from corporate income tax for eight (8) years beginning in 2007 and then taxable at 50% for five (5) years starting in 2015. We attempt to modify and obtain tax concessions when possible.

Exams

In the normal course of business, we are subject to examination by tax authorities throughout the world. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2004. The United States Internal Revenue Service ("IRS") has examined our federal income tax returns for all open years through 2009.

NOLs and Credit Carryforwards

At December 31, 2011, we have $1,793 of various income tax credits, which we expect to utilize within the ten year carryforward period. We have foreign and state net operating loss carryovers that have resulted in a deferred tax asset of $3,345 at December 31, 2011, against which we have recorded a full valuation allowance as it is more likely than not that we will not be able to utilize the loss in the carryforward period.

Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits:

	2011 Restated			2010 Restated		2009 Restated
Balance at beginning of the year	$	810		$	705	$	5,146
Increases related to prior year tax positions		-			105		120
Increases related to current year tax positions		-			-		319
Decreases related to the expiration of statue of limitation / settlement of audits		(810	)		-		(4,880	)
Balance at the end of the year		-			810		705

We report penalties and interest relating to uncertain tax positions within the income tax expense line item within our consolidated statement of operations.