Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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:


	2021		2020
Income (loss) before income tax provision (benefit)
Domestic	$	57,019	$	13,990
Foreign	(169)		268
	$	56,850	$	14,258
Income tax provision (benefit)
Current income tax provision (benefit):
Federal	$	10,870	$	(7,859)
State	1,443		(408)
Foreign	(35)		215
Total current	12,278		(8,052)
Deferred income tax (benefit) provision:
Federal	(4,449)		7,847
State	896		(330)

Total deferred	(3,553)		7,517
	$	8,725	$	(535)

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:


	2021			2020
Income before income tax provision	$	56,850		$	14,258
Statutory taxes at 21.0%	$	11,939		$	2,994
State and local income taxes	1,890			(626)
Non-deductible expenses	725			426
Percentage depletion	(6,245)			(3,744)
R&D and other federal credits	(363)			(367)
Settlements and uncertain tax positions	166			6,286
Coronavirus Aid, Relief, and Economic Security ("CARES") Act - carryback rate differential	—			(4,741)
Other, net	613			(763)
Income tax provision	$	8,725		$	(535)
Effective income tax rate	15.3		%	(3.8)		%

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 is as follows:


	December 31
	2021		2020
Deferred tax assets
Lease liabilities	$	24,500	$	27,800
Tax carryforwards	13,837		17,756
Inventories	4,522		3,742
Accrued liabilities	9,243		10,160
Employee benefits	3,496		2,747
Land valuation adjustment	5,988		5,536
Other	6,527		5,401
Total deferred tax assets	68,113		73,142
Less: Valuation allowance	11,695		11,549
	56,418		61,593
Deferred tax liabilities
Lease right-of-use assets	24,500		27,800
Depreciation and depletion	25,851		31,972
Partnership investment - development costs	9,840		11,686
Accrued pension benefits	10,941		7,685
Total deferred tax liabilities	71,132		79,143
Net deferred liability	$	(14,714)	$	(17,550)

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, 2021
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
State net operating loss	$	17,516	$	14,694	2022-2041


	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

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, 2021 and 2020. The increase in the gross unrecognized tax benefits in 2020 was primarily due to tax positions related to worthlessness losses for which the timing of deductibility is uncertain. Approximately $6.4 million and $6.3 million of the gross unrecognized tax benefits as of December 31, 2021 and 2020, 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.


	2021		2020
Balance at January 1	$	10,459	$	2,860
Additions based on tax positions related to prior years	95		2,774
Decreases based on settlements with tax authorities	—		(803)
Additions based on tax positions related to the current year	—		5,628
Balance at December 31	$	10,554	$	10,459