Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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):

	2021		2020		2019
Current income tax expense	$	643,639	$	88,914	$	149,106
Deferred income tax expense		318,617		45,736		48,331
Total income tax expense	$	962,256	$	134,650	$	197,437

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:

	2021			2020			2019
Statutory federal tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal benefit		2.5			2.6			2.1
Release of valuation allowance		-			(2.9)			-
Federal research & development credits		(0.7)			(2.1)			(0.6)
Other permanent differences		0.1			0.5			0.1
Effective tax rate		22.9	%		19.1	%		22.6	%

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):

	2021		2020
Deferred tax assets
Accrued expenses and allowances	$	24,324	$	22,912
Inventories		9,088		5,670
Net operating loss carryforwards		20,333		25,089
Other		8,776		7,077
		62,521		60,748
Less: valuation allowance		(805)		(805)
Total net deferred tax assets		61,716		59,943
Deferred tax liabilities
Property, plant and equipment		(846,942)		(538,746)
Intangible assets		(62,339)		(51,835)
Other		(7,340)		(5,650)
Total deferred tax liabilities		(916,621)		(596,231)
Net deferred tax liability	$	(854,905)	$	(536,288)

Schedule of Unrecognized Tax Benefits Roll Forward

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

	2021		2020		2019
Balance at January 1	$	12,830	$	10,162	$	10,131
Increases related to current year tax positions		8,250		4,350		750
Increases related to prior year tax positions		2,095		-		2,198
Decreases related to prior year tax positions		(2,709)		(1,682)		(1,363)
Settlements with taxing authorities		-		-		(1,554)
Balance at December 31	$	20,466	$	12,830	$	10,162