Income Taxes

12 Months Ended

Dec. 31, 2020

Income Taxes

Income Taxes

(6) Income Taxes

Income tax expense (benefit) for the years ended December 31 is as follows:

	2020		2019		2018
Current income tax expense (benefit)	$	1,537	$	(4)	$	1,863
Deferred income tax expense		4,312		4,848		20
Income tax expense	$	5,849	$	4,844	$	1,883

A reconciliation of income taxes computed at the federal statutory rate to income tax expense (benefit) for the years ended December 31 is as follows:

	2020				2019				2018
			Percent of				Percent of				Percent of
			Pretax				Pretax				Pretax
	Amount		Income		Amount		Income		Amount		Income
Income taxes computed at the federal statutory rate	$	7,155	21.0	%	$	6,489	21.0	%	$	4,529	21.0	%
(Reduction) increase in taxes resulting from:
Statutory depletion in excess of cost depletion		(1,266)	(3.7)			(1,200)	(3.9)			(1,199)	(5.6)
Research and development tax credits		—	—			(1,155)	(3.7)			(1,775)	(8.2)
State income taxes, net of federal income tax benefit		(262)	(0.8)			155	0.5			178	0.8
Other		222	0.7			555	1.8			150	0.7
Income tax expense	$	5,849	17.2	%	$	4,844	15.7	%	$	1,883	8.7	%

The research and development tax credits in 2019 and 2018 were primarily associated with the construction of the kiln at St. Clair.

Components of the Company’s deferred tax liabilities and assets are as follows:

	December 31,		December 31,
	2020		2019
Deferred tax liabilities
Lime and limestone property, plant and equipment	$	21,297	$	16,928
Operating lease right-of-use assets		513		735
Natural gas interests drilling costs and equipment		519		1,040
		22,329		18,703
Deferred tax assets
Operating lease liabilities		511		728
Other		287		757
		798		1,485
Deferred tax liabilities, net	$	21,531	$	17,218

Current income taxes are classified on the Company’s Consolidated Balance Sheets as follows:

Prepaid expenses and other current assets	$	—	$	416
Accrued expenses	$	990	$	—

The Company had no federal net operating loss carry forwards at December 31, 2020. The Company reduces deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is “more likely than not” that some portion or all of the deferred tax assets will not be realized. Deferred tax assets are considered fully recognizable because of the Company’s recent income history and expectations of income in the future. The Company’s federal income tax returns for the year ended December 31, 2017 and subsequent years remain subject to examination. The Company’s income tax returns in certain state income tax jurisdictions remain subject to examination for various periods for the year ended December 31, 2016 and subsequent years. The Company treats interest and penalties on income tax liabilities as income tax expense.