Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Tax Expense (benefit) on Income From Continuing Operations

The components of the Corporation’s tax expense (benefit) on income from continuing operations are as follows:

years ended December 31
(add 000)	2013		2012			2011
Federal income taxes:
Current	$	30,856	$	(2,530	)	$	15,982
Deferred		8,399		12,581			4,080
Total federal income taxes		39,255		10,051			20,062
State income taxes:
Current		3,201		458			2,829
Deferred		478		1,670			(882	)
Total state income taxes		3,679		2,128			1,947
Foreign income taxes:
Current		972		4,062			(1,006	)
Deferred		139		1,190			--
Total foreign income taxes		1,111		5,252			(1,006	)
Total taxes on income	$	44,045	$	17,431		$	21,003

Summary of Effective Income Tax Rate on Continuing Operations

The Corporation’s effective income tax rate on continuing operations varied from the statutory United States income tax rate because of the following permanent tax differences:

years ended December 31	2013			2012			2011
Statutory tax rate		35.0	%		35.0	%		35.0	%
Increase (reduction) resulting from:
Effect of statutory depletion		(12.0	)		(17.6	)		(17.6	)
State income taxes		1.5			1.3			1.3
Foreign valuation allowance		--			(3.4	)		2.5
Foreign taxes, other		1.7			0.7			2.1
Domestic production deduction		(2.1	)		0.1			(1.2	)
Advanced pricing agreements		0.9			0.7			--
Medicare subsidy		--			--			(0.2	)
Other items		1.8			(0.1	)		(1.0	)
Effective income tax rate		26.8	%		16.7	%		20.9	%

Deferred Tax Assets and Liabilities

The principal components of the Corporation’s deferred tax assets and liabilities are as follows:

December 31	Deferred Assets (Liabilities)
(add 000)	2013			2012
Deferred tax assets related to:
Employee benefits	$	31,067		$	33,258
Inventories		53,229			54,555
Valuation and other reserves		18,372			17,753
Net operating loss carryforwards		5,379			8,891
Other items, net		--			1,511
Gross deferred tax assets		108,047			115,968
Valuation allowance on deferred tax assets		(5,858	)		(6,572	)
Total net deferred tax assets		102,189			109,396
Deferred tax liabilities related to:
Property, plant and equipment		(257,366	)		(260,191	)
Goodwill and other intangibles		(78,577	)		(70,669	)
Other items, net		(2,891	)		--
Total deferred tax liabilities		(338,834	)		(330,860	)
Net deferred tax liability	$	(236,645	)	$	(221,464	)

Deferred Tax Assets and (Liabilities) Recognized

Deferred tax assets and (liabilities) recognized on the Corporation’s consolidated balance sheets are as follows:

December 31
(add 000)	2013			2012
Current deferred income tax benefits	$	74,821		$	77,716
Noncurrent deferred income taxes		(279,999	)		(225,592	)
Net deferred income taxes	$	(205,178	)	$	(147,876	)

Schedule Of Unrecognized Tax Benefits

The following table summarizes the Corporation’s unrecognized tax benefits, excluding interest and correlative effects:

years ended December 31   (add 000)	2013			2012			2011
Unrecognized tax benefits at beginning of year	$	15,380		$	9,288		$	11,011
Gross increases – tax positions in prior years		9,845			19,434			1,217
Gross decreases – tax positions in prior years		(5,121	)		(13,876	)		(1,510	)
Gross increases – tax positions in current year		2,540			1,555			6,274
Gross decreases – tax positions in current year		(529	)		--			(4,625	)
Settlements with taxing authorities		(8,599	)		(1,021	)		(3,079	)
Lapse of statute of limitations		(1,690	)		--			--
Unrecognized tax benefits at end of year	$	11,826		$	15,380		$	9,288