INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Components of Earnings Before Income Taxes for Domestic and Foreign Operations

The components of earnings before income taxes for our domestic and foreign operations were as follows:

	Year Ended December 31,
(in thousands of U.S. dollars)	2012		2011		2010
United States	$	184,237	$	174,357	$	626,755
Foreign	629		5,387		5,900
Earnings before income taxes	$	184,866	$	179,744	$	632,655

Income Taxes Charged to Earnings

Income taxes have been charged to earnings as follows:

	Year Ended December 31,
(in thousands of U.S. dollars)	2012			2011			2010
Current:
Federal	$	59,121		$	64,328		$	228,683
Foreign	884			1,554			1,825
State	13,578			10,553			35,028
Total current taxes	73,583			76,435			265,536
Deferred:
Federal	(8,270		)	(6,834		)	(19,647		)
Foreign	(146		)	223			1,743
State	714			(3,510		)	(382		)
Total deferred taxes	(7,702		)	(10,121		)	(18,286		)
Income tax expense	$	65,881		$	66,314		$	247,250

Actual Income Tax Expense Differs from Expected Amounts Computed by Applying U.S. Federal Income Tax Rate to Earnings Before Income Taxes

The actual income tax expense differs from expected amounts computed by applying the U.S. federal income tax rate to earnings before income taxes as follows:

	Year Ended December 31,
(in thousands of U.S. dollars)	2012			2011			2010
Expected income tax expense at statutory rate	$	64,703		$	62,910		$	221,429
Increase (decrease) in taxes resulting from:
Domestic production activities	(3,150		)	(2,450		)	(2,625		)
Statutory expirations of unrecognized tax benefits	(7,862		)	(477		)	(100		)
State and local income taxes, net of federal benefit	9,293			4,766			22,275
Other items, net	2,897			1,565			6,271
Income tax expense	$	65,881		$	66,314		$	247,250

Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities are as follows:

	Year Ended December 31,
(in thousands of U.S. dollars)	2012			2011
Long-term deferred income tax assets (liabilities):
Intangible assets	$	(77,347	)	$	(80,372	)
Depreciation on plant and equipment	(25,322		)	(33,037		)
Deferred compensation	20,726			20,008
Cancellation of indebtedness income	(3,833		)	(3,830		)
Net operating loss and tax credit carryforwards	12,288			7,316
Stock-based compensation	4,065			4,552
Partnership losses	—			2,603
Investment impairments	5,233			5,202
Foreign	299			315
Acquisition costs	13,425			13,634
Interest rate swaps	2,198			2,083
Allowance for uncollectible accounts	1,067			1,288
Other reserves	7,441			8,958
Long-term deferred income tax liabilities	(39,760		)	(51,280		)
Valuation allowance	(17,498		)	(16,124		)
Deferred income tax liabilities	(57,258		)	(67,404		)
Current deferred income tax assets (liabilities):
Inventory	$	815		$	622
Accrued expenses	3,770			5,141
Allowance for uncollectible accounts	6,469			7,972
Other reserves	46			(203		)
Prepaid expense	(3,473		)	(3,465		)
Intangible assets	(5,940		)	(4,976		)
Current deferred income tax assets	1,687			5,091
Valuation allowance	(1,536		)	(1,731		)
Net current deferred income tax assets	$	151		$	3,360

Net Deferred Tax Assets and Liabilities

Our net deferred tax assets and liabilities are summarized as follows:

	Year Ended December 31,
(in thousands of U.S. dollars)	2012			2011
Total deferred tax assets	$	63,833		$	76,193
Total deferred tax liabilities	(120,940		)	(140,237		)
Net deferred income tax liabilities	$	(57,107	)	$	(64,044	)

Summary of Valuation Allowance [Table Text Block]

The following table summarizes the expiration periods and corresponding valuation allowances for the deferred tax assets related to net operating/capital loss and tax credit carryforwards:

(in millions of U.S. dollars)	2013 - 2017			2018 - 2027			2028 - 2032			Indefinite			Total
Gross deferred tax asset	$	0.7		$	0.8		$	5.9		$	4.9		$	12.3
Valuation allowance	(0.5		)	(0.5		)	(1.3		)	(3.3		)	(5.6		)
Net deferred tax asset	$	0.2		$	0.3		$	4.6		$	1.6		$	6.7

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table provides a reconciliation of the beginning and ending balances of gross unrecognized tax benefits:

	Year Ended December 31,
(in thousands of U.S. dollars)	2012			2011
Gross unrecognized tax benefits - January 1,	$	9,609		$	12,536
Gross increases in tax positions for prior years	1,681			404
Gross decreases in tax positions for prior years	(292		)	(1,728		)
Gross increases in tax positions for current year	412			38
Gross decreases in tax positions for current year	(6		)	(15		)
Settlements	(90		)	(444		)
Lapse of statute of limitations	(7,226		)	(1,182		)
Gross unrecognized tax benefits - December 31,	$	4,088		$	9,609

Summary of Open Tax Years by Major Jurisdiction

The following table summarizes open tax years by major jurisdiction:

Jurisdiction	Open Tax Years
United States	9/2005 - 3/2/2007; 2009 - 2012
California	2007 - 2012
Connecticut	2008 - 2012
Illinois	2009 - 2012
Kansas	2009 - 2012
Massachusetts	2009 - 2012
Michigan	2008 - 2012
North Carolina	2009 - 2012
Pennsylvania	2008 - 2012
Texas	2008 - 2012