D. Income Taxes

The provision for income taxes consists of the following (in thousands):


        Current   Deferred

1997
U.S. Federal       $149,003     $2,210
Foreign       915     (165)
State and local       28,493     1,044
         
   
          $178,411     $3,089
         
   
 
1996
U.S. Federal       $120,612     $(3,575)
Foreign       718     598
State and local       22,343     (1,296)
         
   
          $143,673     $(4,273)
         
   
 
1995
U.S. Federal       $ 96,630     $ 3,525
Foreign       608     1,215
State and local       18,654     668
         
   
          $115,892     $ 5,408
         
   

 

The provision for income taxes exceeds the amount of income tax determined by applying the U.S. Federal statutory rate of 35 percent to income before taxes as a result of the following (in thousands):


    1997 1996 1995


U.S. Federal statutory
  taxes   $162,076   $126,076     $108,989
State and local taxes
  net of U.S. Federal
  income tax benefit   19,199   13,681     12,559
Amortization of goodwill
not deductible for
  income tax purposes   2,492   2,336     2,373
Other, net   (2,267)   (2,693)     (2,621)
     
 
   
Provision for income
  taxes   $181,500   $139,400     $121,300
     
 
   

 

Deferred income taxes at December 28, 1997, December 29, 1996, and December 31, 1995, consist of the following (in thousands):


    1997 1996 1995

Accrued postretirement
  benefits   $ 51,076   $ 49,363     $ 47,167
Other benefit obligations   34,358   26,634     20,963
Accounts receivable   9,127   8,399     6,765
Other   8,319   12,373     9,134
     
 
   
Deferred tax asset   102,880   96,769     84,029
     
 
   
Property, plant, and
  equipment   40,498   39,248     42,159
Prepaid pension cost   79,978   65,300     55,574
Affiliate operations   7,645   14,977     14,165
Investment tax credit   813   1,589     2,301
Other   5,252   5,802     4,473
     
 
   
Deferred tax liability   134,186   126,916     118,672
     
 
   
Deferred income taxes   $ 31,306   $ 30,147     $ 34,643