Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2012

Earnings before taxes on income and details of the provision for taxes on income for the years ended December 31, 2012, 2011 and 2010 were as follows (in thousands):

	2012		2011		2010
Earnings before taxes on income — United States	$	340,526	$	294,747	$	189,640

Provision for taxes on income:
Federal:
Current	$	41,297	$	33,640	$	33,014
Deferred		71,767		65,451		30,643
State and local		14,843		10,164		8,601
	$	127,907	$	109,255	$	72,258

Schedule Of Effective Income Tax Rate Reconciliation

The Company's provision for taxes on income varied from the statutory federal income tax rate for the years ended December 31, 2012, 2011 and 2010 due to the following:

	2012			2011			2010
United States income tax statutory rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal benefit		2.8			2.2			2.9
Other – net		(.2	)		(.1	)		.2
		37.6	%		37.1	%		38.1	%

Schedule Of Deferred Tax Assets And Liabilities

The tax effects of temporary differences that give rise to significant portions of the current deferred tax assets and non-current deferred tax assets and liabilities at December 31, 2012 and 2011 were as follows (in thousands):

	2012			2011
Current deferred tax assets:
Compensated absences	$	750		$	695
Allowance for doubtful accounts		1,652			1,752
Insurance accruals		3,306			4,150
Other		6,588			7,589
	$	12,296		$	14,186

Non-current deferred tax assets and liabilities:
Deferred tax assets:
Postretirement health care benefits	$	3,215		$	3,422
Insurance accruals		1,556			1,420
Deferred compensation		8,449			8,290
Unrealized loss on derivative financial instruments		563			3,384
Unrealized loss on defined benefit plans		33,942			28,114
Operating loss carryforwards		601			1,305
Other		13,443			9,047
		61,769			54,982

Deferred tax liabilities:
Property		(408,905	)		(298,335	)
Deferred state taxes		(39,072	)		(25,738	)
Pension benefits		(18,794	)		(15,376	)
Goodwill and other intangibles		(20,220	)		(6,563	)
Other		(874	)		(1,325	)

		(487,865	)		(347,337	)
	$	(426,096	)	$	(292,355	)

Reconciliation Of Liability For Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits for the years ended December 31, 2012, 2011 and 2010, is as follows (in thousands):

	2012			2011			2010
Balance at beginning of year	$	1,532		$	2,088		$	2,290
Additions based on tax positions related to the current year		165			602			279
Additions for tax positions of prior years		53			402			84
Reductions for tax positions of prior years		(502	)		(738	)		(443	)
Settlements		(203	)		(822	)		(122	)
Balance at end of year	$	1,045		$	1,532		$	2,088

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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