Income Taxes (Tables)

12 Months Ended

Aug. 31, 2015

Aug. 31, 2014

Schedule of components of income tax expense (benefit)

The provision for income taxes for the years ended August 31, 2015, 2014 and 2013 is as follows:



	2015			2014			2013
	(Dollars in thousands)
Current:
Federal	$	(47,695	)	$	38,653		$	(18,018	)
State	3,891			31,203			11,805
Foreign	1,335			2,837			3,162
	(42,469		)	72,693			(3,051		)
Deferred:
Federal	29,348			(23,444		)	92,102
State	(2,799		)	(1,893		)	1,685
Foreign	3,755			940			(1,070		)
	30,304			(24,397		)	92,717
Total	$	(12,165	)	$	48,296		$	89,666

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of August 31, 2015 and 2014 were as follows:



	2015			2014
	(Dollars in thousands)
Deferred tax assets:
Accrued expenses	$	96,270		$	76,255
Postretirement health care and deferred compensation	89,934			83,346
Tax credit carryforwards	109,756			70,881
Loss carryforwards	85,860			53,793
Other	68,625			52,956
Deferred tax assets valuation	(98,024		)	(111,509		)
Total deferred tax assets	352,421			225,722
Deferred tax liabilities:
Pension	20,732			12,855
Investments	98,291			88,425
Major maintenance	36,135			26,020
Property, plant and equipment	654,057			576,007
Other	25,836			—
Total deferred tax liabilities	835,051			703,307
Net deferred tax liabilities	$	482,630		$	477,585

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, 2015, 2014 and 2013 is as follows:



	2015		2014		2013
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	(0.5	)	1.6		0.9
Patronage earnings	(29.0	)	(20.5	)	(22.9	)
Domestic production activities deduction	(5.6	)	(10.0	)	(8.5	)
Export activities at rates other than the U.S. statutory rate	(0.2	)	1.2		0.6
Valuation allowance	(0.1	)	1.7		2.3
Tax credits	(0.8	)	(3.1	)	(0.5	)
Non-controlling interests	—		—		(0.1	)
Other	(0.4	)	(1.6	)	1.5
Effective tax rate	(1.6	)%	4.3	%	8.3	%

Schedule of unrecognized tax benefits roll forward

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



	2015		2014			2013
	(Dollars in thousands)
Balance at beginning of period	$	72,181	$	67,271		$	67,271
Additions attributable to prior year tax positions	—		35,718			—
Reductions attributable to prior year tax positions	—		(9,867		)	—
Reductions attributable to statute expiration	—		(20,941		)	—
Balance at end of period	$	72,181	$	72,181		$	67,271