Income Taxes (Tables)

12 Months Ended

Dec. 27, 2014

Components of income before income taxes

The components of income before income taxes were taxed under the following jurisdictions:

(In thousands)	2014		2013		2012

Domestic	$	135,445	$	262,220	$	105,945
Foreign		12,568		9,178		14,409

Income before income taxes	$	148,013	$	271,398	$	120,354

Components of income tax expense

Income tax expense consists of the following:

(In thousands)	2014			2013			2012

Current tax expense:
Federal	$	45,723		$	69,565		$	33,152
Foreign		2,346			2,608			1,764
State and local		3,905			6,723			3,049

Current tax expense		51,974			78,896			37,965

Deferred tax (benefit) expense:
Federal		(2,469	)		17,694			570
Foreign		890			(376	)		(2,015	)
State and local		(4,916	)		1,895			161

Deferred tax (benefit) expense		(6,495	)		19,213			(1,284	)

Income tax expense	$	45,479		$	98,109		$	36,681

Income tax reconciliation

(In thousands)	2014			2013			2012

Expected income tax expense	$	51,805		$	94,989		$	42,124
State and local income tax, net of federal benefit		3,355			6,405			3,178
Effect of foreign statutory rate different from U.S. and other foreign adjustments		(1,094	)		(1,026	)		(2,637	)
Valuation allowance changes		(5,732	)		—			(1,224	)
U.S. production activities deduction		(4,025	)		(4,445	)		(2,975	)
Goodwill disposition		—			1,790			—
Tax contingency changes		—			(140	)		(3,224	)
Other, net		1,170			536			1,439

Income tax expense	$	45,479		$	98,109		$	36,681

Unrecognized tax benefits reconciliation

The following summarizes the activity related to the Company’s unrecognized tax benefits:

(In thousands)	2014			2013

Beginning balance	$	2,828		$	3,259
Increases related to prior year tax positions		—			—
Increases related to current year tax positions		—			—
Decreases related to prior year tax positions		(2,828	)		—
Decreases related to settlements with taxing authorities		—			(431	)
Decreases due to lapses in the statute of limitations		—			—

Ending balance	$	—		$	2,828

Components of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

(In thousands)	2014			2013

Deferred tax assets:
Inventories	$	12,815		$	11,136
Other postretirement benefits and accrued items		14,550			13,548
Pension		4,792			—
Other reserves		10,262			12,931
Federal and foreign tax attributes		6,451			5,913
State tax attributes, net of federal benefit		22,928			24,663
Share-based compensation		3,016			2,486

Total deferred tax assets		74,814			70,677
Less valuation allowance		(17,119	)		(22,544	)

Deferred tax assets, net of valuation allowance		57,695			48,133

Deferred tax liabilities:
Property, plant, and equipment		57,089			60,425
Pension		—			4,507
Other		1,721			2,209

Total deferred tax liabilities		58,810			67,141

Net deferred tax liability	$	(1,115	)	$	(19,008	)