Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes

Income Taxes

(4) Income Taxes

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

	2022		2021		2020
Current income tax expense	$	8,606	$	7,949	$	1,537
Deferred income tax expense		2,527		1,524		4,312
Income tax expense	$	11,133	$	9,473	$	5,849

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

	2022				2021				2020
			Percent of				Percent of				Percent of
			Pretax				Pretax				Pretax
	Amount		Income		Amount		Income		Amount		Income
Income taxes computed at the federal statutory rate	$	11,878	21.0	%	$	9,769	21.0	%	$	7,155	21.0	%
(Reduction) increase in taxes resulting from:
Statutory depletion in excess of cost depletion		(1,869)	(3.3)			(1,389)	(3.0)			(1,266)	(3.7)
State income taxes, net of federal income tax benefit		557	1.0			462	1.0			(262)	(0.8)
Disallowed executive compensation		493	0.9			456	1.0			—	—
Other		74	0.1			175	0.4			222	0.7
Income tax expense	$	11,133	19.7	%	$	9,473	20.4	%	$	5,849	17.2	%

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

	December 31,		December 31,
	2022		2021
Deferred tax liabilities
Lime and limestone property, plant and equipment	$	25,703	$	22,992
Operating lease right-of-use assets		1,238		724
Natural gas interests drilling costs and equipment		259		387
		27,200		24,103
Deferred tax assets
Operating lease liabilities		1,276		740
Other		342		308
		1,618		1,048
Deferred tax liabilities, net	$	25,582	$	23,055

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

	December 31,		December 31,
	2022		2021
Prepaid expenses and other current assets	$	—	$	543
Accrued expenses	$	237	$	—

The Company had no federal net operating loss carry forwards at December 31, 2022. 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, 2019 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, 2018 and subsequent years. The Company treats interest and penalties on income tax liabilities as income tax expense.