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5NOV201416070203
Deferred tax assets and liabilities as of August 31, 2014
and 2013 were as follows:
(DOLLARS IN THOUSANDS) 2014 2013
Deferred tax assets:
Accrued expenses $ 76,255 $ 66,973
Postretirement health care and
deferred compensation 83,346 57,130
Tax credit carryforwards 70,881 97,242
Loss carryforwards 53,793 57,174
Other 52,956 40,868
Deferred tax assets valuation (111,509) (79,623)
Total deferred tax assets 225,722 239,764
Deferred tax liabilities:
Pension 12,855 6,752
Investments 88,425 91,453
Major maintenance 26,020 31,960
Deferred taxes are comprised of basis differences related Property, plant and equipment 576,007 529,101
to investments, accrued liabilities and certain federal and Total deferred tax liabilities 703,307 659,266
state tax credits. Effective September 1, 2013, NCRA files Net deferred tax liabilities $ 477,585 $ 419,502
as part of our consolidated income tax returns and, as
such, these items are assessed in conjunction with our
deferred tax assets when determining recoverability. We have total gross loss carry forwards of $247.8 mil-
lion, of which $152.1 million will expire over periods
Domestic income before income taxes was $1.2 billion, ranging from fiscal 2015 to fiscal 2036. The remainder
$1.1 billion, and $1.4 billion for the years ended August 31, will carry forward indefinitely. NCRA’s gross state tax
2014, 2013 and 2012 respectively. Foreign activity made credit carry forwards for income tax are approximately
up the difference between the total income before $63.4 million and $88.1 million as of August 31, 2014, and
income taxes and the domestic amounts. 2013, respectively. During the year ended August 31,
2014, the valuation allowance for NCRA decreased by
$8.0 million due to a change in the amount of state tax
credits that are estimated to be utilized. NCRA’s valua-
tion allowance is necessary due to the limited amount of
taxable income it generates on an annual basis. Based
on estimates of future taxable profits and losses in cer-
tain foreign tax jurisdictions, we determined that a valu-
ation allowance was required for specific foreign loss
carry forwards as of August 31, 2014. If these estimates
prove inaccurate, a change in the valuation allowance,
up or down, could be required in the future. During 2014,
valuation allowances related to foreign operations
increased by $39.9 million due to net operating loss car-
ryforwards and other timing differences.
42 CHS 2014
Income Taxes
The provision for income taxes for the years ended
August 31, 2014, 2013 and 2012 is as follows:
(DOLLARS IN THOUSANDS) 2014 2013 2012
Current
Federal $ 38,653 $(18,018) $ 9,565
State 31,203 11,805 7,851
Foreign 2,837 3,162 4,812
72,693 (3,051) 22,228
Deferred
Federal (23,444) 92,102 66,707
State (1,893) 1,685 1,617
Foreign 940 (1,070) (9,700)
(24,397) 92,717 58,624
Total $ 48,296 $ 89,666 $ 80,852