Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of Components of Income Tax Expense (Benefit)

The company files a consolidated federal income tax return. The current and deferred federal and state income tax expense (benefit) for the years ended December 31 is as follows (in thousands):

	2018		2017		2016
Current income tax expense	$	304,726	$	269,387	$	153,176
Deferred income tax expense (benefit)		59,243		(139,948)		50,951
Total income tax expense	$	363,969	$	129,439	$	204,127

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory rates to the actual effective tax rates for the years ended December 31 are as follows:

	2018			2017			2016
Statutory federal tax rate		21.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		2.6			1.4			2.6
Impact from Tax Reform		-			(19.3)			-
Tax benefit of equity compensation		(0.1)			(1.1)			(1.0)
Noncontrolling interests		-			0.3			1.4
Audit settlements		(0.3)			-			-
Domestic manufacturing deduction		-			(2.6)			(2.5)
Other permanent differences		(0.7)			0.1			0.7
Effective tax rate		22.5	%		13.8	%		36.2	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the company’s deferred tax assets and liabilities at December 31 are as follows (in thousands):

	2018		2017
Deferred tax assets
Accrued expenses and allowances	$	19,020	$	16,322
Inventories		9,599		4,109
Net operating loss carryforwards		30,109		33,693
Other		7,639		8,074
		66,367		62,198
Less: valuation allowance		(21,788)		(20,714)
Total net deferred tax assets		44,579		41,484
Deferred tax liabilities
Property, plant and equipment		(455,935)		(344,511)
Intangible Assets		(22,748)		(1,292)
Other		(1,734)		(1,630)
Total deferred tax liabilities		(480,417)		(347,433)
Net deferred tax liability	$	(435,838)	$	(305,949)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2018		2017		2016
Balance at January 1	$	16,749	$	19,107	$	15,991
Increases related to current year tax positions		500		300		300
Increases related to prior year tax positions		503		271		5,452
Decreases related to prior year tax positions		(798)		(863)		(535)
Settlements with taxing authorities		(6,823)		(2,066)		(2,101)
Balance at December 31	$	10,131	$	16,749	$	19,107