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Income Taxes
 12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company’s income tax provision consists of the following (in millions):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Current:
 
 
 
 
 
Federal
$
22.0

 
$
18.7

 
$
16.2

State
3.1

 
2.4

 
2.5

Foreign
—

 
—

 
—

Total current tax provision
25.1

 
21.1

 
18.7

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
(0.6
)
 
2.8

 
2.5

State
(0.5
)
 
0.8

 
0.5

Foreign
(0.3
)
 
(0.3
)
 
(0.2
)
Total deferred tax (benefit) provision
(1.4
)
 
3.3

 
2.8

 
 
 
 
 
 
Total income tax provision
$
23.7

 
$
24.4

 
$
21.5



A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate and income tax provision is as follows (in millions):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Federal income tax provision at the statutory rate
$
23.2

 
35.0
 %
 
$
23.1

 
35.0
 %
 
$
19.4

 
35.0
 %
Increase (decrease) resulting from:
 
 
 
 
 
 
 
 
 
 
 
State income taxes, net of federal benefit
2.3

 
3.5

 
2.5

 
3.9

 
2.3

 
4.2

Decrease in unrecognized tax benefits (inclusive of
 
 
 
 
 
 
 
 
 
 
 
related interest and penalty)
(0.9
)
 
(1.4
)
 
(0.4
)
 
(0.6
)
 
(0.2
)
 
(0.4
)
Effect of foreign operations
(0.3
)
 
(0.5
)
 
(0.3
)
 
(0.5
)
 
(0.2
)
 
(0.4
)
Non-deductible acquisition costs
—

 
—

 
—

 
—

 
0.2

 
0.4

Tax credits and other, net
(0.6
)
 
(0.9
)
 
(0.5
)
 
(0.8
)
 
—

 
—

Income tax provision
$
23.7

 
35.7
 %
 
$
24.4

 
37.0
 %
 
$
21.5

 
38.8
 %


The Company’s effective tax rate was 35.7% for 2014 compared to 37.0% for 2013. The decrease in effective tax rate for 2014 was due primarily to a higher proportion of earnings from states with lower tax rates, tax credits and adjustments of prior years' estimates.
The provision for income taxes included a net benefit of $1.8 million and $0.9 million for 2014 and 2013, respectively, related primarily to the expiration of the statute of limitations for uncertain tax positions and adjustments of prior years’ estimates.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The tax effects of significant temporary differences which comprise deferred tax assets and liabilities are as follows (in millions):
 
December 31, 2014
 
December 31, 2013
Deferred tax assets:
 
 
 
Employee benefits, including post-retirement benefits
$
12.4

 
$
11.3

Trade and other receivables
4.1

 
3.6

Goodwill and intangibles
2.6

 
2.8

Self-insurance reserves
1.2

 
1.0

Other
3.7

 
3.6

Subtotal
24.0

 
22.3

Less: valuation allowance
(0.1
)
 
(0.1
)
Net deferred tax assets
$
23.9

 
$
22.2

Deferred tax liabilities:
 
 
 
Inventories
$
1.3

 
$
5.4

Property and equipment
22.6

 
19.1

Goodwill and intangibles
6.5

 
7.1

Other
1.6

 
1.7

Total deferred tax liabilities
$
32.0

 
$
33.3

 
 
 
 
Total net deferred tax liabilities
$
(8.1
)
 
$
(11.1
)
Net current deferred tax assets
8.1

 
2.3

Net non-current deferred tax liabilities
$
(16.2
)
 
$
(13.4
)


At each balance sheet date, a valuation allowance was established against the deferred tax assets based on management’s assessment whether it is more likely than not that these deferred tax assets would not be realized. The Company had a valuation allowance of $0.1 million at December 31, 2014 and 2013 related to foreign tax credits, which will expire at various times between 2015 to 2016.
The total gross amount of unrecognized tax benefits related to federal, state and foreign taxes was approximately $0.4 million and $0.6 million at December 31, 2014 and 2013, respectively, all of which would impact the Company’s effective tax rate, if recognized. There is no impact on the total gross amount of unrecognized tax benefits through December 31, 2015 as a result of the expiration of the statute of limitations for certain tax positions in future years and expected settlement of certain tax audit issues. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2014, 2013 and 2012 is as follows (in millions):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Balance at beginning of year
$
0.6

 
$
1.6

 
$
1.8

Increase in unrecognized tax benefits
—

 
0.2

 
—

Lapse of statute of limitations
(0.2
)
 
(0.2
)
 
(0.2
)
Settlement(1)
—

 
(1.0
)
 
—

Balance at end of year
$
0.4

 
$
0.6

 
$
1.6

____________________________________________
(1)
Relates to the settlement in 2013 of certain pre-acquisition tax liabilities which were reimbursed by the former owners of Forrest City Grocery Company.
The Company files U.S. federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2011 to 2014 tax years remain subject to examination by federal and state tax authorities. The 2010 tax year was still open for certain state tax authorities. The 2007 to 2014 tax years remain subject to examination by the tax authorities in Canada.
For the year ended December 31, 2014 the Company recognized a net benefit in its provision for income taxes of $0.2 million related primarily to the recovery of interest associated with the expiration of statute of limitations for certain unrecognized tax positions compared to $0.1 million for 2013 and 2012, respectively. As of December 31, 2014, the Company had a liability of $0.3 million for estimated interest and penalties related to unrecognized tax benefits, consisting of $0.2 million for interest and $0.1 million for penalties, compared to a liability of $0.5 million as of December 31, 2013.