Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2018

Earnings before taxes on income and details of the provision for taxes on income for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands):

	2018			2017			2016
Earnings (loss) before taxes on income:
United States	$	117,800		$	74,267		$	227,746
Foreign		(3,641	)		(1,253	)		—
	$	114,159		$	73,014		$	227,746

Provision (benefit) for taxes on income:
U.S. Federal:
Current	$	—		$	11,143		$	28,919
Deferred		27,102			(258,703	)		49,685
	$	27,102		$	(247,560	)	$	78,604
U.S. State:
Current	$	(243	)	$	3,861		$	4,727
Deferred		7,619			2,280			1,611
	$	7,376		$	6,141		$	6,338
Foreign:
Current	$	443		$	370		$	—
Deferred		160			160			—
	$	603		$	530		$	—
Consolidated:
Current	$	200		$	15,374		$	33,646
Deferred		34,881			(256,263	)		51,296
	$	35,081		$	(240,889	)	$	84,942

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, 2018, 2017 and 2016 due to the following:

	2018			2017			2016
United States income tax statutory rate		21.0	%		35.0	%		35.0	%
State and local taxes, net of federal benefit		6.5			0.9			1.8
Change due to U.S. tax reform		—			(369.0	)		—
Other – net		3.2			3.2			0.5
		30.7	%		(329.9	)%		37.3	%

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the non-current deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows (in thousands):

	2018			2017
Non-current deferred tax assets and liabilities:
Deferred tax assets:
Allowance for doubtful accounts	$	2,105		$	1,875
Inventory		5,017			3,795
Insurance accruals		4,119			4,599
Deferred compensation		1,291			1,849
Unrealized loss on defined benefit plans		9,891			11,097
Operating loss carryforwards		81,867			15,540
Pension benefits		6,559			549
Other		22,421			16,301
		133,270			55,605
Valuation allowances		(25,568	)		(15,308	)
		107,702			40,297
Deferred tax liabilities:
Property		(526,873	)		(428,947	)
Deferred state taxes		(74,638	)		(58,366	)
Goodwill and other intangibles		(34,235	)		(9,015	)
Other		(14,741	)		(12,420	)
		(650,487	)		(508,748	)
	$	(542,785	)	$	(468,451	)

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, 2018, 2017 and 2016, is as follows (in thousands):

	2018			2017			2016
Balance at beginning of year	$	1,787		$	2,019		$	1,958
Additions based on tax positions related to the current year		254			403			187
Additions for tax positions of prior years		70			273			867
Reductions for tax positions of prior years		(668	)		(908	)		(441	)
Settlements		—			—			(552	)
Balance at end of year	$	1,443		$	1,787		$	2,019