Income Taxes (Tables)

12 Months Ended

Sep. 30, 2012

The fiscal year income taxes consist of the following (in thousands):



	2012			2011			2010
Current:
Federal	$	32,010		$	48,265		$	55,765
State	5,248			11,042			8,420
	37,258			59,307			64,185
Deferred:
Federal	(5,553		)	(8,077		)	(24,070		)
State	(1,062		)	(4,755		)	(3,484		)
	(6,615		)	(12,832		)	(27,554		)
Income tax expense from continuing operations	$	30,643		$	46,475		$	36,631
Income tax benefit from discontinued operations	$	(3,456	)	$	(1,298	)	$	(825	)

Reconciliation Of The Federal Statutory Income Tax Rate To Effective Tax Rate

A reconciliation of the federal statutory income tax rate to our effective tax rate of continuing operations is as follows:



	2012		2011		2010
Computed at federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	3.3		3.4		3.2
Benefit of jobs tax credits	(1.2	)	(1.5	)	(1.8	)
Expense/(benefit) related to COLIs	(5.0	)	0.3		(2.2	)
Others, net	0.6		(0.9	)	(0.2	)
	32.7	%	36.3	%	34.0	%

Deferred Tax Assets And Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each year-end are presented below (in thousands):



	2012			2011
Deferred tax assets:
Accrued pension and postretirement benefits	$	109,443		$	82,706
Accrued insurance	12,096			14,263
Accrued vacation pay expense	4,611			6,605
Deferred income	1,969			2,268
Other reserves and allowances	32,504			29,127
Tax loss and tax credit carryforwards	5,093			4,025
Leasing transactions	10,893			9,348
Share-based compensation	18,722			18,853
Other, net	3,297			4,620
Total gross deferred tax assets	198,628			171,815
Valuation allowance	(5,093		)	(4,025		)
Total net deferred tax assets	193,535			167,790
Deferred tax liabilities:
Property and equipment, principally due to differences in depreciation	(27,230		)	(32,677		)
Intangible assets	(23,837		)	(24,021		)
Total gross deferred tax liabilities	(51,067		)	(56,698		)
Net deferred tax assets	$	142,468		$	111,092

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits follows (in thousands):



	2012		2011
Balance beginning of year	$	629	$	629
Increases to tax positions recorded during current years	276		—
Balance at end of year	$	905	$	629

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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