(7) Income Taxes

Total income taxes for 2012, 2011 and 2010 were allocated as follows:


	2012		2011			2010

	(Amounts are in thousands)

Earnings	$	750,339		769,807			701,271
Other comprehensive earnings (losses)		5,056		(5,015	)		(3,135	)

	$	755,395		764,792			698,136

The provision for income taxes consists of the following:


	Current		Deferred			Total

	(Amounts are in thousands)

2012
Federal		$654,715		9,861			664,576
State		88,622		(2,859	)		85,763

		$743,337		7,002			750,339
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

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:


	2012			2011			2010

	(Amounts are in thousands)

Federal tax at statutory tax rate	$	805,908			791,621			713,796
State income taxes (net of federal tax benefit)		55,746			56,580			49,657
ESOP dividend		(76,900	)		(46,675	)		(40,718	)
Other, net		(34,415	)		(31,719	)		(21,464	)


	$	750,339			769,807			701,271

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of December 29, 2012 and December 31, 2011 are as follows:


	2012		2011

	(Amounts are in thousands)

Deferred tax assets:
Self-insurance reserves		$116,901		114,522
Retirement plan contributions		49,876		48,825
Postretirement benefit cost		46,688		41,515
Reserves not currently deductible		15,986		18,047
Inventory capitalization		11,768		11,687
Other		23,045		18,642

Total deferred tax assets		$264,264		253,238

Deferred tax liabilities:
Property, plant and equipment, primarily due to depreciation		$497,932		491,485
Investment valuation		24,086		7,831
Other		11,706		11,324

Total deferred tax liabilities		$533,724		510,640

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 29, 2012 and December 31, 2011.

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 2011 tax years, and the Internal Revenue Service is currently auditing the 2008 through 2011 tax years. The periods subject to examination for the Company’s state returns are the 2007 through 2011 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, the Company had an immaterial accrual for income tax related interest expense.

The Company had no unrecognized tax benefits in 2012 and 2011. Because the Company does not have any unrecognized tax benefits as of December 29, 2012, there will be no effect on the Company’s effective income tax rate in future periods due to the recognition of unrecognized tax benefits.