Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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 for the years ended December 31 is as follows (in thousands):

	2020		2019		2018
Current income tax expense	$	88,914	$	149,106	$	304,726
Deferred income tax expense		45,736		48,331		59,243
Total income tax expense	$	134,650	$	197,437	$	363,969

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:

	2020			2019			2018
Statutory federal tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal benefit		2.6			2.1			2.6
Release of valuation allowance		(2.9)			-			-
Audit settlements		-			-			(0.3)
Federal research & development credits		(2.1)			(0.6)			(0.3)
Other permanent differences		0.5			0.1			(0.5)
Effective tax rate		19.1	%		22.6	%		22.5	%

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):

	2020		2019
Deferred tax assets
Accrued expenses and allowances	$	22,912	$	19,731
Inventories		5,670		5,599
Net operating loss carryforwards		25,089		27,541
Other		7,077		8,020
		60,748		60,891
Less: valuation allowance		(805)		(21,958)
Total net deferred tax assets		59,943		38,933
Deferred tax liabilities
Property, plant and equipment		(538,746)		(487,634)
Intangible assets		(51,835)		(33,322)
Other		(5,651)		(2,146)
Total deferred tax liabilities		(596,232)		(523,102)
Net deferred tax liability	$	(536,289)	$	(484,169)

Schedule of Unrecognized Tax Benefits Roll Forward

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

	2020		2019		2018
Balance at January 1	$	10,162	$	10,131	$	16,749
Increases related to current year tax positions		4,350		750		500
Increases related to prior year tax positions		-		2,198		503
Decreases related to prior year tax positions		(1,682)		(1,363)		(798)
Settlements with taxing authorities		-		(1,554)		(6,823)
Balance at December 31	$	12,830	$	10,162	$	10,131