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Income Taxes | 12 Months Ended
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Dec. 26, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Earnings before income taxes of $3.0 billion, $2.9 billion and $3.0 billion for fiscal years 2014, 2013 and 2012, respectively, represent earnings from domestic operations. The breakdown of income tax expense between current and deferred is as follows:
| Fiscal Years
(Dollars in Millions) | 2014 |  | 2013 |  | 2012
Current: |  |  |
Federal | $ | 729 |  |  | $ | 671 |  |  | $ | 450 |
State | 90 |  |  | 87 |  |  | 66 |
Subtotal Current | 819 |  |  | 758 |  |  | 516 |
Deferred: |  |  |  |  |
Federal | 291 |  |  | 285 |  |  | 530 |
State | 7 |  |  | 15 |  |  | 62 |
Subtotal Deferred | 298 |  |  | 300 |  |  | 592 |
Total | $ | 1,117 |  |  | $ | 1,058 |  |  | $ | 1,108 |
Income tax expense reconciled to the tax computed at statutory rates is presented in the table below. The Company recorded a tax benefit of $31 million, $42 million and $20 million in 2014, 2013 and 2012, respectively, primarily as a result of federal and state legislative changes as well as the resolution of other federal and state tax matters. Each year's benefit is included in the state income tax and other lines in the table below.
| Fiscal Years
(Dollars In Millions) | 2014 |  | 2013 |  | 2012
Federal Income Taxes | $ | 1,066 |  |  | 35.0 | % |  | $ | 1,023 |  |  | 35.0 | % |  | $ | 1,040 |  |  | 35.0 | %
State Income Taxes | 61 |  |  | 2.0 | % |  | 65 |  |  | 2.2 | % |  | 81 |  |  | 2.8 | %
Other | (10 | ) |  | (0.3 | )% |  | (30 | ) |  | (1.0 | )% |  | (13 | ) |  | (0.4 | )%
Income Tax Expense/Rate | $ | 1,117 |  |  | 36.7 | % |  | $ | 1,058 |  |  | 36.2 | % |  | $ | 1,108 |  |  | 37.4 | %
In September 2013, the IRS issued final regulations governing the income tax treatment of the acquisition, disposition and repair of tangible property. The regulations were effective beginning in 2014. These new regulations did not have a material impact on the financial statements. NOTE 11. Income Taxes, continued The significant components of deferred income tax assets and liabilities include:
| 2014 |  | 2013
(Dollars in Millions) | Assets |  | Liabilities |  | Assets |  | Liabilities
Pension Plans | $ | 188 |  |  | $ | — |  |  | $ | 67 |  |  | $ | — |
Other Employee Benefit Plans | 306 |  |  | — |  |  | 299 |  |  | — |
Accelerated Depreciation | — |  |  | 9,133 |  |  | — |  |  | 8,868 |
Other | 256 |  |  | 334 |  |  | 257 |  |  | 262 |
Total | $ | 750 |  |  | $ | 9,467 |  |  | $ | 623 |  |  | $ | 9,130 |
Net Deferred Income Tax Liabilities |  |  |  | $ | 8,717 |  |  |  |  |  | $ | 8,507 |
The primary factors in the change in year-end net deferred income tax liability balances include:
• | Annual provision for deferred income tax expense; and
• | Accumulated other comprehensive loss.
The Company files a consolidated federal income tax return, which includes its principal domestic subsidiaries. Income tax incurred on the operations of the Company are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. CSX participated in a contemporaneous IRS audit of tax year 2014. Federal examinations of original federal income tax returns for all years through 2013 are resolved. As of December 2014, 2013 and 2012, the Company had approximately $21 million, $23 million and $24 million, respectively, of total unrecognized tax benefits. After consideration of the impact of federal tax benefits, $13 million, $15 million and $17 million in 2014, 2013 and 2012, respectively, could favorably affect the effective income tax rate in each year. The Company estimates that approximately $2 million of the unrecognized tax benefits as of December 2014 for various state and federal income tax matters will be resolved over the next 12 months upon the expiration of statutes of limitations. The final outcome of these uncertain tax positions is not yet determinable. The change to the total gross unrecognized tax benefits and prior year audit resolutions of the Company during the fiscal year ended December 2014 is reconciled as follows:
Uncertain Tax Positions: | Fiscal Year
(Dollars in Millions) | 2014 |  | 2013 |  | 2012
Balance at beginning of the year | $ | 23 |  |  | $ | 24 |  |  | $ | 22 |
Additions based on tax positions related to current year | 2 |  |  | 2 |  |  | 6 |
Additions based on tax positions related to prior years | 3 |  |  | 5 |  |  | 3 |
Reductions based on tax positions related to prior years | — |  |  | (6 | ) |  | (1 | )
Settlements with taxing authorities | — |  |  | — |  |  | — |
Lapse of statute of limitations | (7 | ) |  | (2 | ) |  | (6 | )
Balance at end of the year | $ | 21 |  |  | $ | 23 |  |  | $ | 24 |
NOTE 11. Income Taxes, continued CSX’s continuing practice is to recognize net interest and penalties related to income tax matters in income tax expense. Included in the consolidated income statements are expense of $1 million in 2014 and benefits of $1 million and $8 million in 2013 and 2012, respectively, for changes to reserves for interest and penalties for all prior year tax positions. The current year expense for interest and penalties is due to state tax settlements of prior period tax audits where the Company had previously accrued a liability for interest and penalties. The Company had $1 million, $2 million and $3 million accrued for interest and penalties at 2014, 2013 and 2012, respectively, for all prior year tax positions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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