13. Income Taxes

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


	Year Ended December 31,
	2011			2010		2009
Domestic	$	404,422		$	339,382	$	72,079
Foreign		(2,990	)		3,578		6,674

	$	401,432		$	342,960	$	78,753

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


	Year Ended December 31,
	2011			2010		2009
Current
Federal	$	120,018		$	97,822	$	(3,049	)
State		8,729			8,128		(2,306	)
Foreign		(395	)		1,464		(94	)

		128,352			107,414		(5,449	)

Deferred
Federal		6,732			7,083		29,824
State		7,682			6,829		660
Foreign		(300	)		241		723

		14,114			14,153		31,207

Total provision	$	142,466		$	121,567	$	25,758

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


	Year Ended December 31,
	2011			2010			2009
Provision for federal income tax at statutory rate	$	140,501		$	120,036		$	27,563
State income tax provision net of federal income tax effect		10,745			9,372			462
Foreign tax		(695	)		1,705			629
Foreign losses (earnings)		1,047			(1,252	)		(2,336	)
Manufacturing deduction		(9,905	)		(8,750	)		—
Contingent tax liability		(20	)		(411	)		(1,004	)
Other, net		793			867			444

	$	142,466		$	121,567		$	25,758

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


	2011			2010
Net operating loss carryforward	$	13,958		$	15,018
Credit carryforward		769			1,729
Accruals		29,002			24,693
Allowance for doubtful accounts		1,329			878
Inventories		7,321			6,893
Other		5,900			6,119

Deferred taxes assets—total		58,279			55,330

Property, plant and equipment		(344,535	)		(328,635	)
Turnaround costs		(11,073	)		(13,091	)
Other		(914	)		(795	)

Deferred tax liabilities—total		(356,522	)		(342,521	)

Valuation allowance		(12,937	)		(11,039	)

Total net deferred tax liabilities	$	(311,180	)	$	(298,230	)


Balance sheet classifications
Current deferred tax asset	$	19,611		$	17,288
Deferred tax liability		(330,791	)		(315,518	)

Total net deferred tax liabilities	$	(311,180	)	$	(298,230	)

At December 31, 2011, the Company had foreign and state net operating loss carryforwards of approximately $294,929, which will expire in varying amounts between 2012 and 2030 and are subject to certain limitations on an annual basis. Management believes the Company will realize the benefit 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 increased by $1,898 in 2011 due to additional current year losses not expected to be realized.

Applicable U.S. deferred income taxes and related foreign dividend withholding taxes have not been provided on approximately $13,223 of undistributed earnings and profits of the Company's foreign corporate joint venture and foreign subsidiaries. The Company considers such earnings to be permanently reinvested outside the United States. The types of events that would cause the earnings to be subject to tax are a taxable remittance or restructuring. It is not practical to estimate the amount of deferred income taxes associated with these earnings.

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


	2011			2010			2009
Beginning balance	$	3,141		$	4,873		$	5,054
Additions based on tax position related to current year		—			—			678
(Reductions) additions for tax positions for prior years		—			(26	)		711
Reductions due to tax settlements		—			(1,389	)		—
Reductions due to statutes of limitations expiring		(19	)		(317	)		(1,570	)

Ending balance	$	3,122		$	3,141		$	4,873

Management anticipates no material reductions to the total amount of gross unrecognized tax benefits within the next twelve months.

The Company recognizes penalties and interest accrued related to unrecognized tax benefits in income tax expense. As of December 31, 2011, the Company had no material accrued interest and penalties related to uncertain tax positions.

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 2005. In January 2012, the Internal Revenue Service completed the audit of the Company for the 2009 tax year with no assessment.