Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	2012			2011
	(In thousands)
Deferred tax assets related to:
Expenses not yet deducted for tax purposes	$	362,265		$	347,605
Pension liability not yet deducted for tax purposes		405,048			377,846
Capital loss		16,803			16,803
Valuation allowance		(16,803	)		(16,803	)
		767,313			725,451
Deferred tax liabilities related to:
Employee and retiree benefits		205,268			188,206
Inventory		191,047			188,063
Property, plant, and equipment		41,130			47,413
Other		51,616			43,225
		489,061			466,907
Net deferred tax asset		278,252			258,544
Current portion of deferred tax liability		1,211			3,064
Noncurrent net deferred tax asset	$	279,463		$	261,608

Components of Income before Income Taxes

The components of income before income taxes are as follows:

	2012		2011		2010
	(In thousands)
United States	$	903,698	$	784,841	$	693,580
Foreign		115,234		105,965		68,203
Income before income taxes	$	1,018,932	$	890,806	$	761,783

Components of Income Tax Expense

The components of income tax expense are as follows:

	2012		2011			2010
	(In thousands)
Current:
Federal	$	288,135	$	260,222		$	221,770
State		44,653		41,511			36,291
Foreign		23,352		26,294			16,217
Deferred		14,751		(2,337	)		11,994
	$	370,891	$	325,690		$	286,272

Difference Between Total Tax Expense and Amount Computed by Applying Statutory Federal Income Tax Rate

The reasons for the difference between total tax expense and the amount computed by applying the statutory Federal income tax rate to income before income taxes are as follows:

	2012			2011			2010
	(In thousands)
Statutory rate applied to income	$	356,626		$	311,782		$	266,624
Plus state income taxes, net of Federal tax benefit		30,227			26,790			24,621
Other		(15,962	)		(12,882	)		(4,973	)
	$	370,891		$	325,690		$	286,272

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2012			2011			2010
	(In thousands)
Balance at beginning of year	$	46,845		$	39,425		$	33,322
Additions based on tax positions related to the current year		5,702			6,035			4,243
Additions for tax positions of prior years		2,172			7,966			3,493
Reductions for tax positions for prior years		(5,025	)		(481	)		(624	)
Reduction for lapse in statute of limitations		(2,658	)		(4,563	)		(451	)
Settlements		(1,581	)		(1,537	)		(558	)
Balance at end of year	$	45,455		$	46,845		$	39,425