9. INCOME TAXES

The components of the income tax provision are summarized as follows:

		2001		2000			1999
Current (benefit) expense
Federal	$	(14,516	)	$	15,945		$	(3,953	)
State	(1,979		)	2,164		(667			)
	(16,495		)	18,109		(4,620			)
Deferred expense (benefit)	20,096		(31,824			)	4,719
Income tax expense (benefit)	$	3,601	$		(13,715	)	$	99

The effective tax rate differs from the statutory rate primarily as a result of the following:

	2001		2000		1999
Statutory rate	35.0	%	35.0	%	35.0	%
Patronage refunds	(27.6	)	(57.3	)	(57.3	)
State income tax, net of federal benefit	0.6	(1.3		)	0.2
Amortization of goodwill	0.3	5.5		11.7
Effect of foreign operations	1.1	0.9		9.3
Disposal of investment	(3.8	)	-	-
Other, net	(1.6	)	1.2	1.6
Effective tax rate	4.0	%	(16.0)	%	0.5	%

The significant components of the deferred tax assets and liabilities are as follows:

		2001			2000		1999
Deferred tax assets related to:
Deferred patronage	$	12,443	$		12,810	$	-
Accrued expenses	33,145		21,017			25,501
Allowance for doubtful accounts	12,040		5,557			6,140
Inventories	5,064		3,588			4,171
Asset impairments	8,037		16,020			-
Joint ventures	1,680		20,898			2,863
Other, net	3,829		3,710			6,501
Total deferred tax assets	76,238		83,600			45,176
Deferred tax liabilities related to:
Property, plant and equipment	77,904		12,946			15,588
Intangibles	16,944		10,085			863
Total deferred tax liabilities	94,848		23,031			16,451
Net deferred tax (liabilities) assets	$	(18,610	)	$	60,569	$	28,725

SFAS No. 109 "Accounting for Income Taxes" requires consideration of a valuation allowance if it is "more likely than not" that benefits of deferred tax assets will not be realized. Management has determined, based on prior earnings history and anticipated earnings, that no valuation allowance is necessary.

Income taxes paid (recovered) in 2001, 2000, and 1999 were $22.3 million, $5.1 million and ($18.5) million, respectively.

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