Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2014

Earnings before taxes on income and details of the provision for taxes on income for the years ended December 31, 2014, 2013 and 2012 were as follows (in thousands):

	2014		2013		2012
Earnings before taxes on income — United States	$	454,390	$	408,678	$	340,526

Provision for taxes on income:
Federal:
Current	$	81,953	$	41,008	$	41,297
Deferred		72,920		97,586		71,767
State and local		14,909		13,785		14,843
	$	169,782	$	152,379	$	127,907

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, 2014, 2013 and 2012 due to the following:

	2014			2013			2012
United States income tax statutory rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal benefit		2.2			2.2			2.8
Other – net		.2			.1			(.2	)
		37.4	%		37.3	%		37.6	%

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, 2014 and 2013 were as follows (in thousands):

	2014			2013
Current deferred tax assets:
Compensated absences	$	854		$	782
Allowance for doubtful accounts		3,111			1,927
Insurance accruals		2,858			2,572
Other		3,739			4,177
	$	10,562		$	9,458

Non-current deferred tax assets and liabilities:
Deferred tax assets:
Postretirement health care benefits	$	2,795		$	3,015
Insurance accruals		3,325			2,781
Deferred compensation		10,157			9,526
Unrealized loss on derivative financial instruments		—			51
Unrealized loss on defined benefit plans		34,501			9,379
Operating loss carryforwards		515			5,699
Other		20,687			17,925
		71,980			48,376

Deferred tax liabilities:
Property		(547,388	)		(487,187	)
Deferred state taxes		(49,503	)		(46,798	)
Pension benefits		(11,198	)		(13,063	)
Goodwill and other intangibles		(37,936	)		(26,120	)
Other		(21,724	)		(19,318	)
		(667,749	)		(592,486	)
	$	(595,769	)	$	(544,110	)

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, 2014, 2013 and 2012, is as follows (in thousands):

	2014			2013			2012
Balance at beginning of year	$	949		$	1,045		$	1,532
Additions based on tax positions related to the current year		470			239			165
Additions for tax positions of prior years		39			114			53
Reductions for tax positions of prior years		(287	)		(413	)		(502	)
Settlements		—			(36	)		(203	)
Balance at end of year	$	1,171		$	949		$	1,045

- 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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