Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

The expense (benefit) for income taxes consists of:

	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	1,768	$	77,668	$	(1,011)
State	171		7,710		—
Deferred and Other:
Federal	—		17,812		—
State	—		—		—
Total tax expense (benefit)	$	1,939	$	103,190	$	(1,011)

The reconciliation between our effective tax rate on income from operations and the statutory rate is as follows:

	Year Ended December 31,
	2023			2022			2021
Income tax (benefit) expense at federal statutory rate	$	1,768		$	118,700		$	2,373
State and local income taxes net of federal tax benefit	171			7,711			—
Alternative minimum tax refund	—			—			(1,011)
Valuation allowance	—			(23,221)			(2,373)
Calculated income tax expense (benefit)	$	1,939		$	103,190		$	(1,011)
Effective tax rate	22.9		%	22.5		%	(8.6)		%

We are subject to taxation in the United States and various states and foreign jurisdictions.  As of December 31, 2023, our tax years for 2023, 2022, and 2021 are subject to examination by the tax authorities.  With few exceptions, as of December 31, 2022, we are no longer subject to U.S federal, state, local, or foreign examinations by tax authorities for the years before 2016.

Components of the Net Deferred Tax Asset or Liability

	December 31,
	2023		2022
Deferred tax asset
Basis difference for fixed assets	$	1,952	$	—
Foreign currency translations	—		4,279
Deferred gain	122		—
Net operating loss carryforward	—		—
	2,074		4,279
Deferred tax liability
Deferred gain	—		17,724
Basis differences for fixed assets	—		4,373
	—		$	22,097
	2,074		(17,818)
Less: valuation allowance	—		—
Net deferred tax liability	$	2,074	$	(17,818)

We have state net operating losses in many of the various states in which we operate.