Income Taxes

3 Months Ended

Mar. 31, 2020

Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]

Income Taxes

Income Taxes

The Company files income tax returns in the U.S. federal jurisdiction and in the states of Texas, New Mexico and Arizona. The Company is no longer subject to tax examination by the taxing authorities in the federal, Texas, Arizona and New Mexico jurisdictions for years prior to 2015.

For the three months ended March 31, 2020 and 2019, the Company’s effective tax rate was 23.2% and 23.8%, respectively. For the twelve months ended March 31, 2020 and 2019, the Company's effective tax rate was 20.8% and 24.3%, respectively. The Company's effective tax rate for all periods in 2020 and 2019 differ from the federal statutory tax rate due to state income taxes, capital gains in the decommissioning trusts which are taxed at the federal rate of 20%, the tax benefit of stock incentive plans, tax reserves and other permanent differences.