Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision charged to operations for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands):


	Years Ended December 31,
	2021		2020		2019
Current:
U.S. Federal	$	90,920	$	44,395	$	55,562
State and local	2,345		1,607		1,930
Current income tax expense	93,265		46,002		57,492
Deferred (benefit) expense	(228)		(2,389)		26,035
Total income tax expense	$	93,037	$	43,613	$	83,527

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21% for the years ended December 31, 2021, 2020 and 2019 to income before Federal income taxes as a result of the following (in thousands):


	Years Ended December 31,
	2021			2020			2019
Computed tax expense at the statutory rate of 21%	$	76,234		$	46,129		$	84,473
Reduction in income taxes resulting from:
Statutory depletion	(584)			(4,577)			(5,163)
State taxes	1,740			1,234			1,657
Executive compensation	1,687			789			1,302
Prior year tax adjustments	18			7			755
Correction of historical tax depletion	12,975			—			—
Estimated penalties and interest	1,022			—			—
Other, net	(55)			31			503
Total income tax expense	$	93,037		$	43,613		$	83,527
Effective tax rate (1)	25.6		%	19.9		%	20.8		%

(1) The correction of historical tax depletion increased the effective tax rate from 22.1% to 25.6%.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands):


	December 31, 2021		December 31, 2020
Unearned revenue	$	5,050	$	5,633
Basis difference in pension plan liability	128		452
Other	25		—
Total deferred tax assets	5,203		6,085

Property, plant and equipment	16,037		16,314
Real estate and royalty interests	28,114		28,494
Other	—		5
Total deferred tax liabilities	44,151		44,813
Deferred taxes payable	$	(38,948)	$	(38,728)