XML 32 R17.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Earnings before income taxes is comprised of the following amounts:
|  | For The Years Ended December 31,
(In thousands) |  | 2017 |  | 2016 |  | 2015
United States |  | $ | 40,954 |  |  | $ | 80,666 |  |  | $ | 92,488 |
The income tax (benefit) provision is comprised of the following:
|  | For The Years Ended December 31,
(In thousands) |  | 2017 |  | 2016 |  | 2015
Current |  |  |  |  |  |
Federal |  | $ | (16,729 | ) |  | $ | 7,434 |  |  | $ | 15,579 |
State |  | 933 |  |  | 5,351 |  |  | 4,855 |
Foreign |  | — |  |  | — |  |  | (10 | )
Total current |  | (15,796 | ) |  | 12,785 |  |  | 20,424 |
Deferred |  |  |  |  |  |
Federal |  | (36,810 | ) |  | 15,573 |  |  | 13,006 |
State |  | (3,779 | ) |  | 2,754 |  |  | 3,075 |
Total deferred |  | (40,589 | ) |  | 18,327 |  |  | 16,081 |
Income tax (benefit) provision |  | $ | (56,385 | ) |  | $ | 31,112 |  |  | $ | 36,505 |
The income tax provision or benefit differs from the amount computed by applying the statutory federal income tax rate of 35.0% to earnings before income taxes due to the following:
|  | For The Years Ended December 31,
(In thousands) |  | 2017 |  | 2016 |  | 2015
Tax at the statutory rate |  | $ | 14,334 |  |  | $ | 28,233 |  |  | $ | 32,371 |
Federal rate change |  | (70,055 | ) |  | — |  |  | — |
State and local taxes, net of federal income tax impact |  | (1,201 | ) |  | 3,046 |  |  | 3,753 |
Federal credits and net operating losses |  | (3,158 | ) |  | (2,850 | ) |  | 3,593 |
Stock compensation |  | 2,207 |  |  | — |  |  | — |
Other, net |  | 1,488 |  |  | 2,683 |  |  | (3,212 | )
Income tax provision |  | $ | (56,385 | ) |  | $ | 31,112 |  |  | $ | 36,505 |
During 2017 and 2016, the valuation allowance for deferred tax assets decreased by $0.7 million and $0.6 million, respectively. In March 2016 the FASB issued ASU 2016-09, Improvements to Employee Share Based Payment Accounting. We adopted the standard during the first quarter of 2017. The standard requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit discretely in the reporting period in which they occur. During 2017, we recognized $2.2 million in tax expense for stock based compensation. We use the flow-through method to account for investment tax credits earned on eligible expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned. During 2017, we recognized $2.4 million related to energy investment tax credits. The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:
(In thousands) |  | 2017 |  | 2016
Deferred tax assets: |  |  |  |
Employee benefits |  | $ | 3,940 |  |  | $ | 6,255 |
Postretirement employee benefits |  | 17,132 |  |  | 27,370 |
Incentive compensation |  | 5,194 |  |  | 11,356 |
Inventories |  | 7,959 |  |  | 8,859 |
Pensions |  | 2,516 |  |  | 8,338 |
State credit carryforwards |  | 11,752 |  |  | 8,369 |
State net operating losses |  | 3,088 |  |  | 1,462 |
Other |  | 1,949 |  |  | 3,774 |
Total deferred tax assets |  | $ | 53,530 |  |  | $ | 75,783 |
Valuation allowance |  | (3,733 | ) |  | (4,407 | )
Deferred tax assets, net of valuation allowance |  | $ | 49,797 |  |  | $ | 71,376 |
Deferred tax liabilities: |  |  |  |
Plant and equipment |  | $ | (153,885 | ) |  | $ | (206,502 | )
Intangible assets |  | (7,577 | ) |  | (14,136 | )
Total deferred tax liabilities |  | (161,462 | ) |  | (220,638 | )
Net deferred tax liabilities |  | $ | (111,665 | ) |  | $ | (149,262 | )
Net deferred tax assets (liabilities) consist of:
(In thousands) |  | 2017 |  | 2016
Non-current deferred tax assets 1 |  | 6,863 |  |  | 2,910 |
Non-current deferred tax liabilities |  | (118,528 | ) |  | (152,172 | )
Net non-current deferred tax liabilities |  | (111,665 | ) |  | (149,262 | )
Net deferred tax liabilities |  | $ | (111,665 | ) |  | $ | (149,262 | )
1 | Included in "Other assets, net" on our accompanying December 31, 2017 and 2016 Consolidated Balance Sheets.
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Act). The Act made broad and complex changes to the U.S. tax code. For the year ended December 31, 2017, we recorded a tax benefit for the impact of the Act of approximately $70 million which represents the remeasurement of our net deferred tax liabilities resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35%. We have net investment tax credits associated with state jurisdictions totaling $11.1 million which expire between 2018 and 2033. The following presents a roll forward of our unrecognized tax benefits and associated interest and penalties, $2.8 million of which is included in the "Accrued taxes" line item in non-current liabilities in our Consolidated Balance Sheets. The remaining $1.3 million consists of unrecorded receivables and certain tax attributes that are uncertain.
(In thousands) |  | Gross Unrecognized Tax Benefits, Excluding Interest and Penalties |  | Interest and Penalties |  | Total Gross Unrecognized Tax Benefits
Balance at December 31, 2015 |  | $ | 4,227 |  |  | $ | 221 |  |  | $ | 4,448 |
Change in prior year tax positions |  | 619 |  |  | 36 |  |  | 655 |
Reductions as a result of a lapse of the applicable statute of limitations |  | (234 | ) |  | (20 | ) |  | (254 | )
Change in current year tax positions |  | 291 |  |  | — |  |  | 291 |
Balance at December 31, 2016 |  | $ | 4,903 |  |  | $ | 237 |  |  | $ | 5,140 |
Change in prior year tax positions |  | (1,149 | ) |  | 48 |  |  | (1,101 | )
Change in current year tax positions |  | 320 |  |  | — |  |  | 320 |
Balance at December 31, 2017 |  | $ | 4,074 |  |  | $ | 285 |  |  | $ | 4,359 |
Unrecognized tax benefits net of related deferred tax assets at December 31, 2017, if recognized, would favorably impact our effective tax rate by decreasing our tax provision by $3.6 million. For each of the years ended December 31, 2016 and 2015, if recognized, the balance of unrecognized tax benefits would favorably impact our effective tax rate by $4.1 million and $3.2 million, respectively. We reflect accrued interest related to tax obligations, as well as penalties, in our provision for income taxes. For the years ended December 31, 2017, 2016, and 2015, we accrued interest of less than $0.1 million each year in our income tax provision. We recorded no penalties in the years ended December 31, 2017, 2016, and 2015. We have certain state benefits related to filing positions taken which have not been recognized on the balance sheet. Although the uncertain tax position was not reflected in the balance sheet as a recorded liability, it is disclosed in the tabular roll forward for unrecognized tax benefits. We have operations in many states within the U.S. and are subject, at times, to tax audits in these jurisdictions. With a few exceptions, we are no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities for years prior to 2014. We expect that the outcome of any examination will not have a material effect on our consolidated financial statements. Although the timing of resolution of audits is not certain, we evaluate all audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimate that it is reasonably possible the total gross unrecognized tax benefits could decrease by approximately $0.9 million within the next 12 months.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration