Pretax income for 2012, 2011 and 2010 was taxed in the following jurisdictions:


	2012		2011		2010
	(In thousands)
Domestic	$	65,738	$	192,857	$	161,573
Foreign		20,466		81,024		70,301

Total	$	86,204	$	273,881	$	231,874

The provision (benefit) for income taxes for 2012, 2011, and 2010, was as follows:


	2012			2011			2010
	(In thousands)
Current
U.S.	$	59,811		$	48,823		$	59,384
State and local		5,764			3,434			4,548
Foreign		20,228			31,343			18,178

Total current		85,803			83,600			82,110
Deferred
U.S.		(31,246	)		4,792			(6,550	)
State and local		(2,377	)		(1,103	)		(293	)
Foreign		(3,606	)		(7,265	)		(493	)

Total deferred		(37,229	)		(3,576	)		(7,336	)

Total provision for income taxes	$	48,574		$	80,024		$	74,774

Deferred tax assets (liabilities) at December 31, 2012 and 2011 were:


	2012			2011
	(In thousands)
Employee and retiree benefit plans	$	38,401		$	38,626
Depreciation and amortization		(170,630	)		(213,002	)
Inventories		10,851			10,274
Allowances and accruals		7,629			14,103
Interest rate exchange agreement		20,856			23,714
Other		7,059			10,033

Total	$	(85,834	)	$	(116,252	)

The deferred tax assets and liabilities recognized in the Company’s Consolidated Balance Sheets as of December 31, 2012 and 2011 were:


	2012			2011
	(In thousands)
Deferred tax asset — other current assets	$	32,293		$	26,037
Deferred tax asset — other noncurrent assets		3,222			360

Total deferred tax assets		35,515			26,397
Deferred tax liability — accrued expenses		—			(167	)
Noncurrent deferred tax liability — deferred income taxes		(121,349	)		(142,482	)

Total deferred tax liabilities		(121,349	)		(142,649	)

Net deferred tax liabilities	$	(85,834	)	$	(116,252	)

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to pretax income. The computed amount and the differences for 2012, 2011, and 2010 are shown in the following table:


	2012			2011			2010
	(In thousands)
Pretax income	$	86,204		$	273,881		$	231,874

Provision for income taxes:
Computed amount at statutory rate of 35%	$	30,171		$	95,858		$	81,156
State and local income tax (net of federal tax benefit)		2,406			1,515			2,766
Taxes on non-U.S. earnings-net of foreign tax credits		1,189			(4,522	)		(8,545	)
Effect of flow-through entities		(7,846	)		(6,922	)		(516	)
Asset impairments		28,524			—			—
U.S. business tax credits		—			(917	)		(935	)
Domestic activities production deduction		(5,267	)		(4,589	)		(4,720	)
Other		(603	)		(399	)		5,568

Total provision for income taxes	$	48,574		$	80,024		$	74,774

The Company has not provided an estimate for any U.S. or additional foreign taxes on undistributed earnings of foreign subsidiaries that might be payable if these earnings were repatriated since the Company considers these amounts to be permanently invested.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2012, 2011 and 2010 are shown in the following table:


	2012			2011			2010
	(In thousands)
Beginning balance January 1	$	5,548		$	6,440		$	5,285
Gross increases for tax positions of prior years		3,017			1,828			3,049
Gross decreases for tax positions of prior years		(98	)		(1,595	)		(675	)
Settlements		—			(338	)		(517	)
Lapse of statute of limitations		(1,961	)		(787	)		(702	)

Ending balance December 31	$	6,506		$	5,548		$	6,440

We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2012, 2011 and 2010, we had approximately $0.7 million, $0.5 million and $0.8 million, respectively, of accrued interest related to uncertain tax positions. As of December 31, 2012, 2011 and 2010, we had approximately $0.5 million, $0.2 million and $0.4 million, respectively, of accrued penalties related to uncertain tax positions.

The total amount of unrecognized tax benefits that would affect our effective tax rate if recognized is $5.8 million, $5.0 million and $5.8 million as of December 31, 2012, 2011 and 2010, respectively. The tax years 2007-2011 remain open to examination by major taxing jurisdictions. Due to the potential for resolution of federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible that the Company’s gross unrecognized tax benefits balance may change within the next 12 months by a range of zero to $2.7 million.

The Company had net operating loss and credit carry forwards for U.S. federal purposes at December 31, 2012 and 2011 of $13.9 and $14.0 million, respectively. For non-U.S. purposes, the Company had net operating loss carry forwards at December 31, 2012 and 2011 of $7.8 and $12.4 million, respectively. The federal net operating loss carry forwards are available for use against the Company’s consolidated federal taxable income and expire between 2018 and 2031. The entire balance of the non-U.S. net operating losses are available to be carried forward, with $3.7 million of these losses beginning to expire during the years 2018 through 2021. The remaining $4.1 million of such losses can be carried forward indefinitely.

At December 31, 2012 and 2011, the Company had a foreign capital loss carry forward of approximately $1.0 million and $1.1 million, respectively. The foreign capital loss can be carried forward indefinitely. At both December 31, 2012 and 2011, the Company has a valuation allowance against the deferred tax asset attributable to the foreign capital loss of $0.2 million. At December 31, 2012 and 2011, the Company had state net operating loss and credit carry forwards of approximately $38.8 million and $18.0 million, respectively. If unutilized, the state net operating loss will expire between 2019 and 2032. At December 31, 2012 and 2011, the Company recorded a valuation allowance against the deferred tax asset attributable to the state net operating loss of $1.5 million and $0.3 million, respectively.