NOTE 9: INCOME TAXES

The components of earnings (loss) from continuing operations before income taxes are as follows:



in thousands	2014	2013	2012
Earnings (Loss) from Continuing
Operations before Income Taxes
Domestic	$ 264,473	$ (34,239)	$ (134,929)
Foreign	34,365	30,536	14,511
Total	$ 298,838	$ (3,703)	$ (120,418)

Provision for (benefit from) income taxes from continuing operations consists of the following:



in thousands	2014	2013	2012
Provision for (Benefit from) Income Taxes
from Continuing Operations
Current
Federal	$ 47,882	$ (3,691)	$ (5,631)
State and local	18,983	7,941	5,271
Foreign	7,174	5,423	2,273
Total	$ 74,039	$ 9,673	$ 1,913
Deferred
Federal	$ 13,556	$ (20,581)	$ (58,497)
State and local	4,120	(13,542)	(8,464)
Foreign	(23)	(9)	(1,444)
Total	$ 17,653	$ (34,132)	$ (68,405)
Total provision (benefit)	$ 91,692	$ (24,459)	$ (66,492)

The provision for (benefit from) income taxes differs from the amount computed by applying the federal statutory income tax rate to earnings (losses) from continuing operations before income taxes. The sources and tax effects of the differences are as follows:



dollars in thousands		2014		2013		2012
Income tax provision (benefit) at the
federal statutory tax rate of 35%	$ 104,594	35.0%	$ (1,296)	35.0%	$ (42,146)	35.0%
Provision for (Benefit from)
Income Tax Differences
Statutory depletion	(25,774)	-8.6%	(20,875)	563.7%	(19,608)	16.3%
State and local income taxes, net of federal
income tax benefit	15,017	5.0%	(3,641)	98.3%	(2,076)	1.7%
Fair market value over tax basis of
charitable contributions	(547)	-0.2%	0	0.0%	(2,007)	1.7%
Other, net	(1,598)	-0.5%	1,353	-36.5%	(655)	0.5%
Total income tax provision (benefit)/
Effective tax rate	$ 91,692	30.7%	$ (24,459)	660.5%	$ (66,492)	55.2%

Deferred taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax liability at December 31 are as follows:



in thousands	2014	2013
Deferred Tax Assets Related to
Pensions	$ 64,711	$ 24,185
Other postretirement benefits	33,046	35,752
Asset retirement obligations and environmental remediation accruals	37,904	41,725
Deferred compensation, vacation pay and incentives	121,900	108,147
Interest rate swaps	14,083	17,371
Self-insurance reserves	15,766	18,338
Inventory	9,982	8,866
Federal net operating loss carryforwards	2,439	65,420
State net operating loss carryforwards	59,315	53,946
Valuation allowance on state net operating loss carryforwards	(56,867)	(46,280)
Foreign tax credit carryforwards	7,822	22,410
Alternative minimum tax credit carryforwards	32,390	16,489
Charitable contribution carryforwards	6,930	10,814
Other	18,807	16,054
Total deferred tax assets	$ 368,228	$ 393,237
Deferred Tax Liabilities Related to
Fixed assets	$ 661,697	$ 725,162
Intangible assets	329,539	304,972
Other	28,403	23,755
Total deferred tax liabilities	$ 1,019,639	$ 1,053,889
Net deferred tax liability	$ 651,411	$ 660,652

The above amounts are reflected in the accompanying Consolidated Balance Sheets as of December 31 as follows:



in thousands	2014	2013
Deferred Income Taxes
Current assets	$ (39,726)	$ (40,423)
Noncurrent liabilities	691,137	701,075
Net deferred tax liability	$ 651,411	$ 660,652

Each quarter we analyze the likelihood that our deferred tax assets will be realized. A valuation allowance is recorded if, based on the weight of all available positive and negative evidence, it is more likely than not (a likelihood of more than 50%) that some portion, or all, of a deferred tax asset will not be realized.

As of December 31, 2014, income tax receivables of $1,040,000 are included in accounts and notes receivable in the accompanying Consolidated Balance Sheet. These receivables relate to prior year state overpayments that we have requested to be refunded. There were similar receivables of $1,073,000 as of December 31, 2013.

Our liability for unrecognized tax benefits is discussed in our accounting policy for income taxes (see Note 1, caption Income Taxes). Changes in our liability for unrecognized tax benefits for the years ended December 31 are as follows:



in thousands	2014	2013	2012
Unrecognized tax benefits as of January 1	$ 12,155	$ 13,550	$ 13,488
Increases for tax positions related to
Prior years	229	28	0
Current year	528	845	1,356
Decreases for tax positions related to
Prior years	(53)	(86)	(43)
Settlements with taxing authorities	0	(136)	(1,456)
Expiration of applicable statute of limitations	(5,802)	(2,046)	205
Unrecognized tax benefits as of December 31	$ 7,057	$ 12,155	$ 13,550

We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. Interest and penalties recognized as income tax expense (benefit) were $(1,067,000) in 2014, $(788,000) in 2013 and $218,000 in 2012. The balance of accrued interest and penalties included in our liability for unrecognized tax benefits as of December 31 was $965,000 in 2014, $2,032,000 in 2013 and $2,820,000 in 2012.

Our liability for unrecognized tax benefits at December 31 in the table above include $6,282,000 in 2014, $7,910,000 in 2013 and $9,170,000 in 2012 that would affect the effective tax rate if recognized.

We are routinely examined by various taxing authorities. We anticipate no single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date.

We file income tax returns in U.S. federal, various state and foreign jurisdictions. Generally, we are not subject to significant changes in income taxes by any taxing jurisdiction for the years prior to 2011.

As of December 31, 2014, we have $56,339,000 of accumulated undistributed earnings from one of our foreign subsidiaries. We consider these earnings to be indefinitely reinvested and, therefore, have not recorded deferred income taxes on these earnings. If we were to distribute these earnings in the form of dividends, the distribution would result in U.S. income taxes of $19,719,000.