Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of components of earnings before income taxes and noncontrolling interests

Components of earnings before income taxes and noncontrolling interests for the years ended December 31 are as follows (in thousands):

	2023		2022		2021
United States	$	3,198,048	$	4,996,762	$	4,179,064
Foreign		20,895		24,307		30,006
Total income before income taxes	$	3,218,943	$	5,021,069	$	4,209,070

Schedule of Components of Income Tax Expense (Benefit)

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

	2023		2022		2021
Current income tax expense
Federal	$	600,499	$	946,016	$	517,272
State		91,965		152,758		116,448
Foreign		3,482		8,605		9,919
Total current		695,946		1,107,379		643,639
Deferred income tax expense
Federal		38,172		22,168		304,235
State		15,355		13,333		16,226
Foreign		2,138		(1,303)		(1,844)
Total deferred		55,665		34,198		318,617
Total income tax expense	$	751,611	$	1,141,577	$	962,256

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:

	2023			2022			2021
Statutory federal tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal benefit		2.6			2.6			2.5
Federal research & development credits		(0.2)			(0.6)			(0.7)
Other permanent differences		(0.1)			(0.3)			0.1
Effective tax rate		23.3	%		22.7	%		22.9	%

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):

	2023		2022
Deferred tax assets
Accrued expenses and allowances	$	41,894	$	34,052
Inventories		10,685		8,028
Net operating loss carryforwards		7,663		16,412
Amortizable assets		5,798		-
Other		9,149		8,091
		75,189		66,583
Less: valuation allowance		(816)		(805)
Total net deferred tax assets		74,373		65,778
Deferred tax liabilities
Property, plant and equipment		(1,013,045)		(951,404)
Amortizable assets		-		(1,304)
Other		(6,096)		(2,173)
Total deferred tax liabilities		(1,019,141)		(954,881)
Net deferred tax liability	$	(944,768)	$	(889,103)

Schedule of Unrecognized Tax Benefits Roll Forward

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

	2023		2022		2021
Balance at January 1	$	28,646	$	20,466	$	12,830
Increases related to current year tax positions		1,500		9,600		8,250
Increases related to prior year tax positions		1,798		364		2,095
Decreases related to prior year tax positions		(686)		(1,784)		(2,709)
Balance at December 31	$	31,258	$	28,646	$	20,466