Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of the Income Tax Provision Allocated to Continuing Operations

Income tax expense consists of the following for the years ended December 31:



(Dollars in thousands)	2014			2013			2012
Current	$	21,205		$	16,352		$	292
Deferred	(2,143		)	(2,754		)	8,197
Net operating loss carryforwards	625			287			8,320
Income taxes	$	19,687		$	13,885		$	16,809

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes due to the following for the years ended December 31:



(Dollars in thousands)	2014			2013			2012
U.S. federal statutory income tax	$	38,359		$	29,563		$	20,791
REIT income not subject to federal income tax	(16,812		)	(13,918		)	(5,241		)
Change in valuation allowance	(1,818		)	(683		)	—
State income taxes, net of federal income tax	2,234			942			1,615
Domestic production activities deduction	(1,055		)	(1,579		)	—
Permanent book-tax differences	(1,073		)	(384		)	(413		)
All other items	(148		)	(56		)	57
Income taxes	$	19,687		$	13,885		$	16,809
Effective tax rate	18.0		%	16.4		%	28.3		%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:



(Dollars in thousands)	2014			2013
Deferred tax assets:
Pensions	$	31,527		$	16,807
Postretirement employee benefits	16,209			18,464
Inventories	2,720			2,636
Incentive compensation	2,544			2,807
Nondeductible accruals	2,033			2,405
Tax credits	1,904			2,135
Employee benefits	1,839			1,586
Net operating loss carryforwards	142			1,056
Other	224			200
Total deferred tax assets	59,142			48,096
Valuation allowance	—			(2,184		)
Deferred tax assets, net of valuation allowance	59,142			45,912
Deferred tax liabilities:
Timber and timberlands	(5,120		)	(5,871		)
Property, plant and equipment	(10,626		)	(10,741		)
Total deferred tax liabilities	(15,746		)	(16,612		)
Net deferred tax assets	$	43,396		$	29,300

Net deferred tax assets and liabilities consist of:



(Dollars in thousands)	2014		2013
Current deferred tax assets	$	6,168	$	7,724
Noncurrent deferred tax assets	37,228		21,576
Net deferred tax assets	$	43,396	$	29,300

Summary of Tax Years Subject to Examination by Major Taxing Jurisdictions

The following table summarizes the tax years subject to examination by major taxing jurisdictions:



Jurisdiction	Years
Federal	2011	-	2014
Arkansas	2011	-	2014
Michigan	2010	-	2014
Minnesota	2010	-	2014
Idaho	2011	-	2014