|
10. Income Taxes
The components of the income tax provision are summarized as follows:
| |
2002
|
|
2001
|
|
2000
|
|
|
Current expense (benefit)
Federal
|
 $
|
2,586
|
|
$ |
(22,298
|
) |
|
16,678
|
|
|
State
|
|
262
|
|
|
(3,199
|
) |
|
2,266
|
|
|
|
|
|
2,848
|
|
|
(25,497
|
) |
|
18,944
|
|
|
Deferred (benefit) expense
|
|
(5,050
|
) |
|
20,096
|
|
|
(31,844
|
) |
|
|
Income tax benefit
|
$
|
(2,202
|
) |
$ |
(5,401
|
) |
$ |
(12,900
|
) |
|
The effective tax rate differs from the statutory rate primarily as a result of the following:
| |
2002
|
|
2001
|
|
2000
|
|
|
|
Statutory rate
|
|
35.0
|
% |
|
35.0
|
% |
|
35.0
|
% |
|
Patronage refunds
|
|
(35.1
|
) |
|
(37.4
|
) |
|
(55.4
|
) |
State income tax, net of federal
benefit
|
|
(0.3
|
) |
|
(0.5
|
) |
|
(1.2
|
) |
|
Amortization of goodwill
|
|
0.5
|
|
|
0.4
|
|
|
5.2
|
|
|
Effect of foreign operations
|
|
(4.2
|
) |
|
1.5
|
|
|
0.8
|
|
|
Disposal of investment
|
|
-
|
|
|
(5.1
|
) |
|
-
|
|
|
Other, net
|
|
1.8
|
|
|
(2.1
|
) |
|
1.3
|
|
|
|
Effective tax rate
|
|
(2.3
|
)% |
|
(8.2
|
)% |
|
(14.3
|
)% |
|
The significant components of the deferred tax assets and liabilities at December 31 are as follows:
| |
2002
|
|
2001
|
|
2000
|
|
|
Deferred tax assets related to:
Deferred patronage
|
$
|
4,323
|
|
$ |
12,443
|
|
$ |
12.810
|
|
|
Accrued expenses
|
|
25,160
|
|
|
33,145
|
|
|
21,017
|
|
|
Allowance for doubtful accounts
|
|
9,012
|
|
|
12,040
|
|
|
5,557
|
|
|
Inventory
|
|
2.252
|
|
|
5.064
|
|
|
3.588
|
|
|
Asset impairments
|
|
10.232
|
|
|
8,037
|
|
|
16,020
|
|
|
Joint ventures
|
|
-
|
|
|
1,680
|
|
|
20,898
|
|
|
Net operating loss carryforward
|
|
48,312
|
|
|
-
|
|
|
-
|
|
|
Other, net
|
|
-
|
|
|
3,829
|
|
|
3,710
|
|
|
|
Total deferred tax assets
|
|
99,291
|
|
|
76,238
|
|
|
83,600
|
|
|
Deferred tax liabilities related to:
Property, plant and equipment
|
|
65,157
|
|
|
77,904
|
|
|
12,946
|
|
|
Intangibles
|
|
17,800
|
|
|
16,944
|
|
|
10,085
|
|
|
Joint ventures
|
|
1,292
|
|
|
-
|
|
|
-
|
|
|
Other, net
|
|
347
|
|
|
-
|
|
|
-
|
|
|
|
Total deferred tax liabilities
|
|
84,596
|
|
|
94,848
|
|
|
23,031
|
|
|
|
Net deferred tax assets (liabilities)
|
$
|
14,695
|
|
$ |
(18,610
|
) |
$ |
60,569
|
|
|
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 (recovered) paid in 2002, 2001, and 2000 were $(21.7) million, $22.3 million and $5.1 million,
respectively.
|
