Note 9 - Income Taxes

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

INCOME TAXES

NOTE 9—INCOME TAXES

Income tax provisions for interim quarterly periods are generally based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items related specifically to interim periods. The income tax impacts of discrete items are recognized in the period these occur.

Excluding discrete items, our effective tax rate for the three months ended June 30, 2022 and June 30, 2021 was 22.8% and 10%, respectively. Our effective tax rate, again excluding discrete items, for the six months ended June 30, 2022 and 2021 was 21.5% and 9%, respectively. Discrete items during the 2021 periods included the impact of legislative changes in West Virginia for which we recognized a tax benefit of $1.4 million. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, permanent differences for non-deductible expenses and depletion expense for income tax purposes.