Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

(7) Income Taxes

Total income taxes for 2011, 2010 and 2009 were allocated as follows:

	2011			2010			2009
	(Amounts are in thousands)
Earnings	$	769,807			701,271			613,272
Other comprehensive (losses) earnings		(5,015	)		(3,135	)		35,159
	$	764,792			698,136			648,431

The provision for income taxes consists of the following:

	Current		Deferred			Total
	(Amounts are in thousands)
2011
Federal	$	592,275		90,486			682,761
State		81,684		5,362			87,046
	$	673,959		95,848			769,807
2010
Federal	$	601,098		23,778			624,876
State		79,451		(3,056	)		76,395
	$	680,549		20,722			701,271
2009
Federal	$	518,269		28,064			546,333
State		67,985		(1,046	)		66,939
	$	586,254		27,018			613,272

A reconciliation of the provision for income taxes at the federal statutory tax rate of 35% to earnings before income taxes compared to the Company's actual income tax expense is as follows:

	2011			2010			2009
	(Amounts are in thousands)
Federal tax at statutory tax rate	$	791,621			713,796			621,150
State income taxes (net of federal tax benefit)		56,580			49,657			43,511
ESOP dividend		(46,675	)		(40,718	)		(36,033	)
Other, net		(31,719	)		(21,464	)		(15,356	)
	$	769,807			701,271			613,272

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of December 31, 2011 and December 25, 2010 are as follows:

	2011		2010
	(Amounts are in thousands)
Deferred tax assets:
Self-insurance reserves	$	114,522		113,557
Retirement plan contributions		48,825		44,686
Postretirement benefit cost		41,515		36,551
Reserves not currently deductible		18,047		24,731
Inventory capitalization		11,687		12,650
Advance purchase allowances		6,454		7,768
Other		4,357		9,378
Total deferred tax assets	$	245,407		249,321
Deferred tax liabilities:
Property, plant and equipment, primarily due to depreciation	$	491,485		409,736
Other		11,324		6,154
Total deferred tax liabilities	$	502,809		415,890

The Company expects the results of future operations and the reversal of deferred tax liabilities to generate sufficient taxable income to allow utilization of deferred tax assets; therefore, no valuation allowance has been recorded as of December 31, 2011 and December 25, 2010.

The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns as well as all open tax years in these jurisdictions. The periods subject to examination for the Company's federal return are the 2008 through 2010 tax years, and the Internal Revenue Service is currently auditing the 2008 and 2009 tax years. The periods subject to examination for the Company's state returns are the 2007 through 2010 tax years. The Company believes that the outcome of any examination will not have a material effect on its financial condition, results of operations or cash flows. As of December 31, 2011 and December 25, 2010, the Company had immaterial accruals for income tax related interest expense.

The Company had no unrecognized tax benefits in 2011 and 2010. Because the Company does not have any unrecognized tax benefits as of December 31, 2011, there will be no effect on the Company's effective income tax rate in future periods due to the recognition of unrecognized tax benefits.