Income Taxes
Total income taxes for 2013, 2012 and 2011 were allocated as follows:
|
| | | | | | | | | | |
| | 2013 | | 2012 | | 2011 |
| | (Amounts are in thousands) |
Earnings | | $ | 811,735 |
| | 750,339 |
| | 769,807 |
|
Other comprehensive earnings (losses) | | 30,674 |
| | 5,056 |
| | (5,015 | ) |
| | $ | 842,409 |
| | 755,395 |
| | 764,792 |
|
The provision for income taxes consists of the following:
|
| | | | | | | | | | |
| | Current | | Deferred | | Total |
| | (Amounts are in thousands) |
2013 | | | | | | |
Federal | | $ | 725,463 |
| | (17 | ) | | 725,446 |
|
State | | 85,211 |
| | 1,078 |
| | 86,289 |
|
| | $ | 810,674 |
| | 1,061 |
| | 811,735 |
|
2012 | | | | | | |
Federal | | $ | 654,715 |
| | 9,861 |
| | 664,576 |
|
State | | 88,622 |
| | (2,859 | ) | | 85,763 |
|
| | $ | 743,337 |
| | 7,002 |
| | 750,339 |
|
2011 | | | | | | |
Federal | | $ | 592,275 |
| | 90,486 |
| | 682,761 |
|
State | | 81,684 |
| | 5,362 |
| | 87,046 |
|
| | $ | 673,959 |
| | 95,848 |
| | 769,807 |
|
A reconciliation of the provision for income taxes at the federal statutory tax rate of 35% to earnings before income taxes compared to the Company’s actual income tax expense is as follows:
|
| | | | | | | | | | |
| | 2013 | | 2012 | | 2011 |
| | (Amounts are in thousands) |
Federal tax at statutory tax rate | | $ | 862,991 |
| | 805,908 |
| | 791,621 |
|
State income taxes (net of federal tax benefit) | | 56,088 |
| | 55,746 |
| | 56,580 |
|
ESOP dividend | | (59,561 | ) | | (76,900 | ) | | (46,675 | ) |
Other, net | | (47,783 | ) | | (34,415 | ) | | (31,719 | ) |
| | $ | 811,735 |
| | 750,339 |
| | 769,807 |
|
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of December 28, 2013 and December 29, 2012 are as follows:
|
| | | | | | | |
| | 2013 | | 2012 |
| | (Amounts are in thousands) |
Deferred tax assets: | | | | |
Self-insurance reserves | | $ | 118,276 |
| | 116,901 |
|
Retirement plan contributions | | 53,299 |
| | 49,876 |
|
Postretirement benefit cost | | 41,384 |
| | 46,688 |
|
Lease accounting | | 22,890 |
| | 12,489 |
|
Inventory capitalization | | 13,178 |
| | 11,768 |
|
Reserves not currently deductible | | 11,760 |
| | 15,986 |
|
Other | | 11,626 |
| | 10,556 |
|
Total deferred tax assets | | $ | 272,413 |
| | 264,264 |
|
Deferred tax liabilities: | | | | |
Property, plant and equipment, primarily due to depreciation | | $ | 507,308 |
| | 497,932 |
|
Investment valuation | | 56,358 |
| | 24,086 |
|
Other | | 9,942 |
| | 11,706 |
|
Total deferred tax liabilities | | $ | 573,608 |
| | 533,724 |
|
The Company expects the results of future operations and the reversal of deferred tax liabilities to generate sufficient taxable income to allow utilization of deferred tax assets; therefore, no valuation allowance has been recorded as of December 28, 2013 and December 29, 2012.
The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns as well as all open tax years in these jurisdictions. The periods subject to examination for the Company’s federal return are the 2010 through 2012 tax years, and the Internal Revenue Service is currently auditing the 2010 through 2011 tax years. The periods subject to examination for the Company’s state returns are the 2010 through 2012 tax years. The Company believes that the outcome of any examination will not have a material effect on its financial condition, results of operations or cash flows.
The Company had no unrecognized tax benefits in 2013 and 2012. Because the Company does not have any unrecognized tax benefits as of December 28, 2013, there will be no effect on the Company’s effective income tax rate in future periods due to the recognition of unrecognized tax benefits.
