Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Earnings (Loss) Before Income Taxes Composition in Each Tax Jurisdiction

Earnings before income taxes is comprised of the following amounts in each tax jurisdiction:



(In thousands)	2016		2015		2014
United States	$	80,666	$	92,488	$	16,253
Canada	—		—		(12		)
Earnings before income taxes	$	80,666	$	92,488	$	16,241

Provision (Benefit) for Income Taxes

The income tax provision is comprised of the following:



(In thousands)	2016		2015			2014
Current
Federal	$	7,434	$	15,579		$	2,355
State	5,351		4,855			1,872
Foreign	—		(10		)	516
Total current	12,785		20,424			4,743
Deferred
Federal	15,573		13,006			11,432
State	2,754		3,075			2,381
Total deferred	18,327		16,081			13,813
Income tax provision	$	31,112	$	36,505		$	18,556

Income Tax Reconciliation

The income tax provision or benefit differs from the amount computed by applying the statutory federal income tax rate of 35.0% to earnings before income taxes due to the following:



(In thousands)	2016			2015			2014
Computed expected tax provision	$	28,233		$	32,371		$	5,685
State and local taxes, net of federal income tax impact	3,966			4,175			1,543
Adjustment for state deferred tax rate	606			104			1,546
State investment tax credits	(921		)	1,146			(1,039		)
Federal credits and net operating losses	(2,850		)	4,010			(485		)
Federal manufacturing deduction	(1,022		)	(1,873		)	(674		)
Uncertain tax positions	2,191			(1,020		)	355
Loss on divested assets	—			—			10,554
State attribute true up	—			1,167			(2,874		)
New York state attribute true up	—			—			1,654
Change in valuation allowances	550			(3,986		)	2,346
Other, net	359			411			(55		)
Income tax provision	$	31,112		$	36,505		$	18,556
Effective tax rate	38.6		%	39.5		%	114.3		%

Tax Effects of Significant Temporary Differences Creating Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:



(In thousands)	2016			2015
Deferred tax assets:
Employee benefits	$	6,255		$	8,611
Postretirement employee benefits	27,370			28,125
Incentive compensation	11,356			8,334
Inventories	8,859			7,557
Pensions	8,338			10,460
Federal and state credit carryforwards	8,369			16,154
State net operating losses	1,462			1,578
Other	3,774			6,220
Total deferred tax assets	$	75,783		$	87,039
Valuation allowance	(4,407		)	(11,983		)
Deferred tax assets, net of valuation allowance	$	71,376		$	75,056
Deferred tax liabilities:
Plant and equipment	$	(206,502	)	$	(186,203	)
Intangible assets	(14,136		)	(4,656		)
Total deferred tax liabilities	(220,638		)	(190,859		)
Net deferred tax liabilities	$	(149,262	)	$	(115,803	)

Net deferred tax assets (liabilities) consist of:



(In thousands)	2016			2015
Non-current deferred tax assets¹	2,910			2,315
Non-current deferred tax liabilities	(152,172		)	(118,118		)
Net non-current deferred tax liabilities	(149,262		)	(115,803		)
Net deferred tax liabilities	$	(149,262	)	$	(115,803	)


¹	Included in "Other assets, net" on our accompanying December 31, 2016 and 2015 Consolidated Balance Sheets.

Roll Forward of Unrecognized Tax Benefits and Associated Interest and Penalties Included in the Accrued Taxes line item in non-current liabilities



(In thousands)	Gross Unrecognized Tax Benefits, Excluding Interest and Penalties			Interest and Penalties			Total Gross Unrecognized Tax Benefits
Balance at January 1, 2015	$	2,406		$	290		$	2,696
Increase in prior year tax positions	2,479			45			2,524
Increase in current year tax positions	226			—			226
Reductions as a result of a lapse of the applicable statute of limitations	(884		)	(114		)	(998		)
Balance at December 31, 2015	$	4,227		$	221		$	4,448
Increase in prior year tax positions	619			36			655
Reductions as a result of a lapse of the applicable statute of limitations	(234		)	(20		)	(254		)
Increase in current year tax positions	291			—			291
Balance at December 31, 2016	$	4,903		$	237		$	5,140