INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of income tax expense on income from continuing operations

The income tax expense on income from continuing operations for each of the three years in the period ended December 31, 2012 consisted of the following (in millions):

	2012			2011			2010
Current:
Federal	$	38.9		$	26.5		$	38.1
State	3.2			1.8			5.4
Total	42.1			28.3			43.5
Deferred	(9.1		)	(3.2		)	3.2
Provision for income taxes	$	33.0		$	25.1		$	46.7

Schedule of reasons why income tax expense differs from amounts computed by applying the statutory federal rate to income from continuing operations

Income tax expense for 2012, 2011, and 2010 differs from amounts computed by applying the statutory federal rate to income from continuing operations before income taxes for the following reasons (in millions):

	2012			2011			2010
Computed federal income tax expense	$	29.7		$	24.9		$	41.2
State income taxes	0.5			1.4			5.0
Deferred tax adjustment	(1.4		)	—			—
Separation costs	1.7			—			—
Unrecognized tax benefit	1.5			—			—
Other — net	1.0			(1.2		)	0.5
Provision for income taxes	$	33.0		$	25.1		$	46.7

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 of each year are as follows (in millions):

	2012		2011
Deferred tax assets:
Benefit plans	$	54.0	$	52.5
Insurance reserves	9.7		7.8
Allowance for doubtful accounts	1.7		1.9
Reserves	1.7		2.5
Other	0.3		1.9
Total deferred tax assets	67.4		66.6
Deferred tax liabilities:
Basis differences for property and equipment	292.6		301.1
Capital Construction Fund	3.3		3.3
Joint ventures and other investments	3.8		6.0
Deferred revenue	10.9		8.0
Amortization	2.1		2.0
Total deferred tax liabilities	312.7		320.4
Net deferred tax liability	$	245.3	$	253.8

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):

Balance at December 31, 2009	$	2.7
Additions for tax positions of prior years	—
Additions for tax positions of current year	1.1
Reductions for tax positions of prior years	(0.3		)
Reductions for lapse of statute of limitations	—
Balance at December 31, 2010	3.5
Additions for tax positions of prior years	0.3
Reductions for tax positions of current year	(0.5		)
Reductions for tax positions of prior years	—
Reductions for lapse of statute of limitations	(0.7		)
Balance at December 31, 2011	2.6
Additions for tax positions of prior years	4.0
Additions for tax positions of current year	3.7
Reductions for tax positions of prior years	(1.0		)
Reductions for lapse of statute of limitations	(1.0		)
Balance at December 31, 2012	$	8.3