Income Taxes

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Current:
Federal	$	(2,012)	$	(3,766)	$	(4,811)
State	(678)		(288)		(358)
Total current	(2,690)		(4,054)		(5,169)
Deferred:
Federal	2,149		2,386		1,347
State	267		(250)		54
Total deferred	2,416		2,136		1,401
Total (provision for) benefit from income taxes	$	(274)	$	(1,918)	$	(3,768)

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,
	2023			2022			2021
Pre-tax net book income	$	486		$	5,405		$	15,656
Statutory federal income tax provision	$	(102)		$	(1,135)		$	(3,288)
State income tax provision	(266)			(478)			(224)
Permanent differences	115			(296)			(94)
Return to provision adjustments	7			8			(88)
Other	(28)			(17)			(74)
Total provision for income taxes	$	(274)		$	(1,918)		$	(3,768)
Effective income tax rate (1)	56		%	35		%	24		%

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(1)Our effective tax rate for the years ended December 31, 2023 and 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.

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,
	2023		2022
Long-term deferred tax asset (liability):
Prepaid and other insurance	$	(804)	$	(707)
Property	(12,559)		(15,208)
ROU assets	1,292		1,701
ROU liabilities	(1,293)		(1,701)
Amortization	(562)		(869)
Investment in unconsolidated affiliate	536		537
Valuation allowance related to investment in unconsolidated affiliate	(525)		(537)
Net operating loss	396		239
Other	571		1,168
Net long-term deferred tax liability	(12,948)		(15,377)
Net deferred tax liability	$	(12,948)	$	(15,377)

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	2017
Texas	2019
Louisiana	2020
Michigan	2019