Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Income Tax Expense (Benefit)

The components of income (loss) before income tax provision (benefit) and the income tax provision (benefit) for the years ended December 31 are as follows:


	2020		2019
Income (loss) before income tax provision (benefit)
Domestic	$	13,990	$	40,742
Foreign	268		2,657
	$	14,258	$	43,399
Income tax provision (benefit)
Current income tax provision (benefit):
Federal	$	(7,859)	$	(6,473)
State	(408)		939
Foreign	215		603
Total current	(8,052)		(4,931)
Deferred income tax provision:
Federal	7,847		8,125
State	(330)		573

Total deferred	7,517		8,698
	$	(535)	$	3,767

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows:


	2020			2019
Income before income tax provision	$	14,258		$	43,399
Statutory taxes at 21.0%	$	2,994		$	9,114
State and local income taxes	(626)			1,129
Non-deductible expenses	426			736
Percentage depletion	(3,744)			(4,451)
R&D and other federal credits	(367)			(255)
Settlements and uncertain tax positions	6,286			(2,377)
Coronavirus Aid, Relief, and Economic Security ("CARES") Act - carryback rate differential	(4,741)			—
Other, net	(763)			(129)
Income tax provision	$	(535)		$	3,767
Effective income tax rate	(3.8)		%	8.7		%

Deferred Tax Assets and Liabilities

A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:


	December 31
	2020		2019
Deferred tax assets
Lease liabilities	$	27,800	$	30,875
Tax carryforwards	17,756		16,305
Inventories	3,742		1,704
Accrued liabilities	10,160		10,020
Employee benefits	2,747		4,853
Land valuation adjustment	5,536		4,304
Other	5,401		4,701
Total deferred tax assets	73,142		72,762
Less: Valuation allowance	11,549		12,296
	61,593		60,466
Deferred tax liabilities
Lease right-of-use assets	27,800		30,875
Depreciation and depletion	31,972		28,061
Partnership investment - development costs	11,686		9,949
Accrued pension benefits	7,685		3,919
Total deferred tax liabilities	79,143		72,804
Net deferred liability	$	(17,550)	$	(12,338)

Summary of Tax Credit Carryforwards

The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain:


	December 31, 2020
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
State net operating loss	$	18,708	$	14,478	2021-2040
Federal research credit	2,648		—		2034-2040
Total	$	21,356	$	14,478


	December 31, 2019
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
State net operating loss	$	16,531	$	13,668	2020-2039
Federal research credit	1,455		—		2034-2038
Federal foreign tax credit	463		463		2029
Alternative minimum tax ("AMT") credit	1,596		—		(1)
Total	$	20,045	$	14,131

(1) The Tax Cuts and Jobs Act provided that AMT credits can be utilized to offset income taxes owed in tax years 2018 through 2020 with any remaining AMT credit refundable in 2021. The CARES Act revised this to allow AMT credits to be refundable in 2018 and 2019. The Company has reclassified its AMT credits to the current receivable as of December 31, 2020.

Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the Company's total gross unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the financial statements for the years ended December 31, 2020 and 2019. The increase in the gross unrecognized tax benefits in 2020 is primarily due to tax positions related to worthlessness losses for which the timing of deductibility is uncertain. Approximately $6.3 million and $2.3 million of the gross unrecognized tax benefits as of December 31, 2020 and 2019, respectively, relate to permanent items that, if recognized, would impact the effective income tax rate. This amount differs from the gross unrecognized tax benefits presented in the table below due to (1) the deferred tax asset which would be available if the position were not sustained upon audit and (2) the decrease in U.S. federal income taxes which would occur upon the recognition of the state tax benefits included herein.


	2020		2019
Balance at January 1	$	2,860	$	1,280
Additions based on tax positions related to prior years	2,774		1,172
Decreases based on settlements with tax authorities	(803)		—
Additions based on tax positions related to the current year	5,628		408
Balance at December 31	$	10,459	$	2,860