INCOME TAXES

The components of the provision for federal and state income taxes in the accompanying consolidated statements of income are as follows:



	2013			2012			2011
Taxes currently payable	$	3,200,000		$	4,315,000		$	1,290,000
Deferred income taxes	(330,000		)	(590,000		)	(50,000		)
Provision for income taxes	$	2,870,000		$	3,725,000		$	1,240,000

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



	2013			2012			2011
Computed at statutory rate
(34%; over $10 million-35%)	$	3,694,000		$	4,820,000		$	1,612,000
Increase (decrease) resulting from:
State income taxes, net of federal
tax benefit (expense)	155,000			195,000			(90,000		)
Percentage depletion	(494,000		)	(794,000		)	(271,000		)
Valuation allowance	—			(399,000		)	15,000
Domestic production activities deduction	—			—			(28,000		)
Dividends received deduction	(400,000		)	(17,000		)	(40,000		)
Other	(85,000		)	(80,000		)	42,000
Provision for income taxes	$	2,870,000		$	3,725,000		$	1,240,000

The tax effects of significant temporary differences relating to deferred taxes, net of valuation allowances, on the balance sheets were:



	2013			2012
Current:
Allowance for doubtful accounts	$	195,000		$	255,000
Accrued vacation	465,000			495,000
Net current deferred tax assets	$	660,000		$	750,000

Noncurrent:
Depreciation	$	(1,077,000	)	$	(1,345,000	)
Postretirement benefits	10,032,000			14,594,000
Pension liability	3,268,000			5,354,000
Unrealized holding gains	(6,744,000		)	(6,600,000		)
Tax carryforwards	917,000			978,000
Alternative minimum tax credit	92,000			352,000
Impairment on investments	719,000			719,000
Other, net	972,577			912,458
Net long-term deferred tax assets*	$	8,179,577		$	14,964,458

*Net of valuation allowance of $2,052,000 for 2013 and 2012.

Some of the Company's subsidiaries file separate state income tax returns resulting in net operating loss carryforwards. In addition, some subsidiaries separately filed federal income tax returns in prior years which also resulted in net operating loss carryforwards. The provision (benefit) for income taxes and income tax liabilities recorded in the financial statements include those separate calculations. The deferred taxes resulting from these and other tax carryforwards are included in the above table net of valuation allowances. The valuation allowance has been used to reduce the tax benefit associated with the tax carryforwards. The following table presents the expiration dates of the Company's carryforwards, net of valuation allowances, for tax purposes as of December 31, 2013:



Expiration Date	Tax Carryforwards
2023	$	137,000
2024	263,000
2025	214,000
2026	131,000
2027	18,000
2028	40,000
2029	114,000
	$	917,000

The Company uses a recognition threshold of "more likely than not" that a tax position would be sustained upon examination before any part of the benefit of that position is recognized in the Company's financial statements.

The Company or one of its subsidiaries files income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal or state income tax examinations by tax authorities for years before 2010 . The Company believes it is not subject to any significant tax risk. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor were any significant interest expenses recognized during the years ended December 31, 2013, 2012 and 2011.