Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Components of income tax provision

Income tax provision applicable to continuing operations consists of the following:

	Year ended December 31,
(in thousands)	2014		2013		2012
Current:
Federal	$	32,600	$	11,812	$	23,816
State and local	5,677		225		3,492
Foreign	1,409		1,400		757
	$	39,686	$	13,437	$	28,065
Deferred:
Federal	$	19,741	$	35,147	$	14,808
State and local	1,830		4,321		1,982
Foreign	244		906		(287		)
	$	21,815	$	40,374	$	16,503
Total:
Federal	$	52,341	$	46,959	$	38,624
State and local	7,507		4,546		5,474
Foreign	1,653		2,306		470
	$	61,501	$	53,811	$	44,568

Components of income before income taxes

Income before income taxes from continuing operations consists of the following:

	Year ended December 31,
(in thousands)	2014		2013		2012
U.S. income	$	174,262	$	141,673	$	119,325
Foreign	9,884		7,840		808
	$	184,146	$	149,513	$	120,133

Effective tax rate reconciliation

A reconciliation from the statutory U.S. federal tax rate to the effective tax rate follows:

	Year ended December 31,
	2014		2013		2012
Statutory U.S. federal tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in rate resulting from:
Effect of qualified domestic production deduction	(1.4	)	(0.4	)	(0.8	)
Effect of Patient Protection and Affordable Care Act	—		0.9		(0.6	)
Effect of noncontrolling interest	(2.5	)	(1.3	)	1.1
State and local income taxes, net of related federal taxes	2.7		2.0		3.0
Other, net	(0.4	)	(0.2	)	(0.6	)
Effective tax rate	33.4	%	36.0	%	37.1	%

Deferred tax liabilities and assets

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

	December 31,
(in thousands)	2014			2013
Deferred tax liabilities:
Property, plant and equipment and Rail Group assets leased to others	$	(133,869	)	$	(110,472	)
Prepaid employee benefits	(18,453		)	(17,725		)
Investments	(36,045		)	(29,749		)
Other	(5,388		)	(5,426		)
	(193,755		)	(163,372		)
Deferred tax assets:
Employee benefits	52,107			36,593
Accounts and notes receivable	1,784			1,890
Inventory	9,964			6,605
Net operating loss carryforwards	1,155			631
Other	148			2,594
Total deferred tax assets	65,158			48,313
Valuation allowance	(232		)	(92		)
	64,926			48,221
Net deferred tax liabilities	$	(128,829	)	$	(115,151	)

Unrecognized tax benefits excluding interest and penalties

A reconciliation of the January 1, 2012 to December 31, 2014 amount of unrecognized tax benefits is as follows:

(in thousands)
Balance at January 1, 2012	$	635
Additions based on tax positions related to the current year	97
Additions based on tax positions related to prior years	415
Reductions as a result of a lapse in statute of limitations	(101		)
Balance at December 31, 2012	1,046
Additions based on tax positions related to the current year	114
Reductions based on tax positions related to prior years	(45		)
Reductions as a result of a lapse in statute of limitations	(5		)
Balance at December 31, 2013	1,110
Additions based on tax positions related to the current year	125
Additions based on tax positions related to prior years	384
Reductions as a result of a lapse in statute of limitations	(132		)
Balance at December 31, 2014	$	1,487