Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of our income tax (provision) benefit were as follows for the periods indicated (in thousands):

	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	(3,766)	$	(4,811)	$	13,246
State	(288)		(358)		(327)
Total current	(4,054)		(5,169)		12,919
Deferred:
Federal	2,386		1,347		(6,631)
State	(250)		54		242
Total deferred	2,136		1,401		(6,389)
Total (provision for) benefit from income taxes	$	(1,918)	$	(3,768)	$	6,530

A reconciliation of the (provision for) benefit from income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes was as follows for the periods indicated (in thousands):

	Year Ended December 31,
	2022			2021			2020
Pre-tax net book income (loss)	$	5,405		$	15,656		$	(5,535)
Statutory federal income tax (provision) benefit	$	(1,135)		$	(3,288)		$	1,162
State income tax provision	(478)			(224)			(16)
Permanent differences	(296)			(94)			(18)
2018/2019 carryback	—			—			2,664
2020 carryback	—			—			2,642
Return to provision adjustments	8			(88)			13
Other	(17)			(74)			83
Total (provision for) benefit from income taxes	$	(1,918)		$	(3,768)		$	6,530
Effective income tax rate (1) (2)	35		%	24		%	118		%

_______________

(1)Our effective tax rate for the year ended December 31, 2022 is higher than our statutory tax rate primarily due to non-deductible expenses, the mix of earnings in states with higher tax rates and less earnings before income taxes as compared to prior years.

(2)Excluding the adjustment related to the carryback of the 2018, 2019 and 2020 net operating losses, the effective income tax rate for the year ended December 31, 2020 was 22 percent.

Deferred income taxes reflect the net difference between the financial statement carrying amounts and the underlying income tax basis in these items. The components of the federal deferred tax asset (liability) were as follows at the dates indicated (in thousands):

	December 31,
	2022		2021
Long-term deferred tax asset (liability):
Prepaid and other insurance	$	(707)	$	(832)
Property	(15,208)		(9,677)
ROU assets	1,701		1,388
ROU liabilities	(1,701)		(1,389)
Amortization	(869)		(1,773)
Investment in unconsolidated affiliate	537		525
Valuation allowance related to investment in unconsolidated affiliate	(537)		(525)
Net operating loss	239		621
Other	1168		355
Net long-term deferred tax liability	(15,377)		(11,307)
Net deferred tax liability	$	(15,377)	$	(11,307)

Financial statement recognition and measurement of positions taken, or expected to be taken, by an entity in its income tax returns must consider the uncertainty and judgment involved in the determination and filing of income taxes. Tax positions taken in an income tax return that are recognized in the financial statements must satisfy a more-likely-than-not recognition threshold, assuming that the tax position will be examined by taxing authorities with full knowledge of all relevant information. We have no significant unrecognized tax benefits. Interest and penalties associated with income tax liabilities are classified as income tax expense.

The earliest tax years remaining open for audit for federal and major states of operations are as follows:

	Earliest Open
	Tax Year
Federal	2016
Texas	2018
Louisiana	2019
Michigan	2018