Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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):

	2019		2018		2017
Current income tax expense	$	149,106	$	304,726	$	269,387
Deferred income tax expense (benefit)		48,331		59,243		(139,948)
Total income tax expense	$	197,437	$	363,969	$	129,439

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:

	2019			2018			2017
Statutory federal tax rate		21.0	%		21.0	%		35.0	%
State income taxes, net of federal benefit		2.1			2.6			1.4
Impact from Tax Reform		-			-			(19.3)
Tax benefit of equity compensation		-			(0.1)			(1.1)
Noncontrolling interests		-			-			0.3
Audit settlements		-			(0.3)			-
Domestic manufacturing deduction		-			-			(2.6)
Other permanent differences		(0.5)			(0.7)			0.1
Effective tax rate		22.6	%		22.5	%		13.8	%

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):

	2019		2018
Deferred tax assets
Accrued expenses and allowances	$	19,731	$	19,020
Inventories		5,599		9,599
Net operating loss carryforwards		27,541		30,109
Other		8,020		7,639
		60,891		66,367
Less: valuation allowance		(21,958)		(21,788)
Total net deferred tax assets		38,933		44,579
Deferred tax liabilities
Property, plant and equipment		(487,634)		(455,935)
Intangible Assets		(33,322)		(22,748)
Other		(2,146)		(1,734)
Total deferred tax liabilities		(523,102)		(480,417)
Net deferred tax liability	$	(484,169)	$	(435,838)

Schedule of Unrecognized Tax Benefits Roll Forward

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

	2019		2018		2017
Balance at January 1	$	10,131	$	16,749	$	19,107
Increases related to current year tax positions		750		500		300
Increases related to prior year tax positions		2,198		503		271
Decreases related to prior year tax positions		(1,363)		(798)		(863)
Settlements with taxing authorities		(1,554)		(6,823)		(2,066)
Balance at December 31	$	10,162	$	10,131	$	16,749