Income Taxes (Tables)

12 Months Ended

Aug. 31, 2013

Aug. 31, 2012

Schedule of components of income tax expense (benefit)

The provision for income taxes for the years ended August 31, 2013, 2012 and 2011 is as follows:



	2013			2012			2011
	(Dollars in thousands)
Current
Federal	$	(18,018	)	$	9,565		$	10,564
State	11,805			7,851			8,922
Foreign	3,162			4,812			53
	(3,051		)	22,228			19,539
Deferred
Federal	92,102			66,707			54,435
State	1,685			1,617			9,454
Foreign	(1,070		)	(9,700		)	3,200
	92,717			58,624			67,089
Total	$	89,666		$	80,852		$	86,628

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of August 31, 2013 and 2012 were as follows:



	2013			2012
	(Dollars in thousands)
Deferred tax assets:
Accrued expenses	$	66,973		$	89,844
Postretirement health care and deferred compensation	57,130			107,817
Tax credit carryforwards	97,242			118,752
Loss carryforwards	57,174			30,272
Other	40,868			57,429
Deferred tax assets valuation	(79,623		)	(56,659		)
Total deferred tax assets	239,764			347,455
Deferred tax liabilities:
Pension	6,752			35,516
Investments	91,453			120,879
Major maintenance	31,960			9,141
Property, plant and equipment	529,101			453,863
Other	—			175
Total deferred tax liabilities	659,266			619,574
Net deferred tax liabilities	$	419,502		$	272,119

Schedule of effective income tax rate reconciliation

The reconciliation of the statutory federal income tax rates to the effective tax rates for the years ended August 31, 2013, 2012 and 2011 is as follows:



	2013		2012		2011
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	0.9		0.5		1.3
Patronage earnings	(22.9	)	(24.2	)	(20.5	)
Domestic production activities deduction	(8.5	)	(3.5	)	(3.2	)
Export activities at rates other than the U.S. statutory rate	0.6		0.4		0.5
Valuation allowance	2.3		0.6		0.9
Tax credits	(0.5	)	(1.3	)	(3.1	)
Non-controlling interests	(0.1	)	(1.9	)	(3.0	)
Other	1.5		0.1		(0.4	)
Effective tax rate	8.3	%	5.7	%	7.5	%

Schedule of unrecognized tax benefits roll forward

econciliation of the gross beginning and ending amounts of unrecognized tax benefits for the periods presented follows:



	2013		2012		2011
	(Dollars in thousands)
Balance at beginning of period	$	67,271	$	67,271	$	69,357
Reductions attributable to statute expiration					(2,086		)
Balance at end of period	$	67,271	$	67,271	$	67,271