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Income Taxes | 12 Months Ended
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Aug. 31, 2012
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes for the years ended August 31, 2012, 2011 and 2010 is as follows:
| 2012 |  | 2011 |  | 2010
| (Dollars in thousands)
Current |  |  |  |  |
Federal | $ | 9,565 |  |  | $ | 10,564 |  |  | $ | 3,409 |
State | 7,851 |  |  | 8,922 |  |  | 4,081 |
Foreign | 4,812 |  |  | 53 |  |  | 1,441 |
| 22,228 |  |  | 19,539 |  |  | 8,931 |
Deferred |  |  |  |  |
Federal | 66,707 |  |  | 54,435 |  |  | 43,361 |
State | 1,617 |  |  | 9,454 |  |  | 1,823 |
Foreign | (9,700 | ) |  | 3,200 |  |  | (5,677 | )
| 58,624 |  |  | 67,089 |  |  | 39,507 |
Total | $ | 80,852 |  |  | $ | 86,628 |  |  | $ | 48,438 |
Deferred taxes are comprised of basis differences related to investments, accrued liabilities and certain federal and state tax credits. NCRA files separate tax returns and, as such, these items must be assessed independent of the Company’s deferred tax assets when determining recoverability. Deferred tax assets and liabilities as of August 31, 2012 and 2011 are as follows:
| 2012 |  | 2011
| (Dollars in thousands)
Deferred tax assets: |  |  |  |  |
Accrued expenses | $ | 89,844 |  |  | $ | 91,458 |
Postretirement health care and deferred compensation | 107,817 |  |  | 100,256 |
Tax credit carryforwards | 118,752 |  |  | 102,120 |
Loss carryforwards | 30,272 |  |  | 71,470 |
Other | 57,429 |  |  | 55,414 |
Deferred tax assets valuation | (56,659 | ) |  | (47,599 | )
Total deferred tax assets | 347,455 |  |  | 373,119 |
Deferred tax liabilities: |  |  |  |  |
Pension | 35,516 |  |  | 56,702 |
Investments | 120,879 |  |  | 91,290 |
Major maintenance | 9,141 |  |  | 4,591 |
Property, plant and equipment | 453,863 |  |  | 453,805 |
Other | 175 |  |  | — |
Total deferred tax liabilities | 619,574 |  |  | 606,388 |
Net deferred tax liabilities | $ | 272,119 |  |  | $ | 233,269 |
During the year ended August 31, 2012, the valuation allowance for NCRA increased by $12.4 million due to a change in the amount of state tax credits that are estimated to be utilized. NCRA’s valuation allowance is necessary due to the limited amount of taxable income it generates on an annual basis. The Company’s foreign tax credit of $7.0 million will expire on August 31, 2019. The Company’s general business credit carryforward of $55.4 million is comprised primarily of low sulfur diesel credits that will begin to expire on August 31, 2027. As of August 31, 2012, net deferred taxes of $37.6 million and $309.7 million are included in current assets and other liabilities, respectively ($59.9 million and $293.1 million in current assets and other liabilities, respectively, as of August 31, 2011). The reconciliation of the statutory federal income tax rates to the effective tax rates for the years ended August 31, 2012, 2011 and 2010 is as follows:
| 2012 |  | 2011 |  | 2010
Statutory federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State and local income taxes, net of federal income tax benefit | 0.5 |  |  | 1.3 |  |  | 0.8 |
Patronage earnings | (24.2 | ) |  | (20.5 | ) |  | (23.8 | )
Domestic production activities deduction | (3.5 | ) |  | (3.2 | ) |  | (1.5 | )
Export activities at rates other than the U.S. statutory rate | 0.4 |  |  | 0.5 |  |  | 1.0 |
Valuation allowance | 0.6 |  |  | 0.9 |  |  | 0.8 |
Tax credits | (1.3 | ) |  | (3.1 | ) |  | (0.2 | )
Non-controlling interests | (1.9 | ) |  | (3.0 | ) |  | (2.0 | )
Other | 0.1 |  |  | (0.4 | ) |  | (1.8 | )
Effective tax rate | 5.7 | % |  | 7.5 | % |  | 8.3 | %
The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company's uncertain tax positions are affected by the tax years that are under audit or remain subject to examination by the relevant taxing authorities. In addition to the current year, fiscal 2006 through 2011 remain subject to examination, at least for certain issues. The Company accounts for its income tax provisions of ASC Topic 740, Income Taxes, which prescribes a minimum threshold that a tax provision is required to meet before being recognized in the consolidated financial statements. This interpretation requires the Company to recognize in the consolidated financial statements tax positions determined more likely than not to be sustained upon examination, based on the technical merits of the position. A reconciliation of the gross beginning and ending amounts of unrecognized tax benefits for the periods presented is as follows:
| 2012 |  | 2011 |  | 2010
| (Dollars in thousands)
Beginning balances | $ | 67,271 |  |  | $ | 69,357 |  |  | $ | 72,519 |
Reductions attributable to statute expiration |  |  |  | (2,086 | ) |  | (3,162 | )
Balances at August 31 | $ | 67,271 |  |  | $ | 67,271 |  |  | $ | 69,357 |
If the Company were to prevail on all tax positions taken relating to uncertain tax positions, substantially all of the unrecognized tax benefits would benefit the effective tax rate. The Company does not believe it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease during the next 12 months. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. During the years ended August 31, 2012, 2011 and 2010, the Company recognized approximately $0.2 million, $0.1 million and $0.3 million in interest, respectively. The Company had approximately $0.2 million and $0.1 million for the payment of interest accrued on August 31, 2012 and 2011, respectively.

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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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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=6881521&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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 7: 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 8: 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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