
	Year Ended December 31
	2020		2019		2018
	(thousands)
Domestic	$	284,147	$	105,341	$	21,704
Foreign	2,164		2,890		398
Income before income taxes	$	286,311	$	108,231	$	22,102


	Year Ended December 31
	2020		2019		2018
	(thousands)
Current income tax provision
Federal	$	66,401	$	13,700	$	6,459
State	17,434		4,574		3,126
Foreign	—		7		5
Total current	83,835		18,281		9,590

Deferred income tax provision (benefit)
Federal	22,321		7,430		(5,987)
State	4,529		925		(2,127)
Foreign	647		670		149
Total deferred	27,497		9,025		(7,965)
Income tax provision	$	111,332	$	27,306	$	1,625


	Year Ended December 31
	2020			2019			2018
	(thousands, except percentages)
Income before income taxes	$	286,311		$	108,231		$	22,102
Statutory U.S. income tax rate	21.0		%	21.0		%	21.0		%

Statutory tax provision	$	60,125		$	22,728		$	4,642
State taxes	12,267			4,390			741
Stranded tax effects of Plan Termination (a)	38,794			—			—
Unrecognized tax benefits	87			(178)			(181)
Benefit from enactment of the Tax Act (b)	—			—			(3,806)

Tax credits	(712)			(725)			(272)
Foreign rate differential	65			71			432
Share-based compensation	(411)			(532)			(1,718)
Nondeductible executive compensation	808			852			366
Meals and entertainment	340			738			886
Other	(31)			(38)			535
Total	$	111,332		$	27,306		$	1,625

Effective income tax rate	38.9		%	25.2		%	7.4		%

(a) In December 2020, we eliminated our qualified defined benefit pension plan (Plan Termination), as discussed in Note 12, Retirement and Benefit Plans. Prior to the Plan Termination, "Accumulated other comprehensive loss" on our Consolidated Balance Sheet included the stranded tax effects of our conversion from a limited liability company to a corporation in 2013 and the adoption of the Tax Cuts and Jobs Act (the "Tax Act") in 2017. Upon Plan Termination, these stranded tax effects of $38.8 million were required to be released into income tax expense under GAAP.

(b) As of December 31, 2018, we completed our assessment of the effects of the Tax Act on our financial statements. In connection with our analysis of the Tax Act, we recorded a discrete tax benefit of $3.8 million during the year ended December 31, 2018. The $3.8 million reduction in income tax expense resulted from the remeasurement of deferred income taxes to the new federal statutory

rate of 21%, which mostly related to a $20.0 million discretionary pension contribution made during 2018, for which we received a tax deduction at the 2017 federal income tax rate of 35%.

During the year ended December 31, 2020, cash paid for taxes, net of refunds received, was $75.1 million. During the year ended December 31, 2019, income tax refunds received, net of cash taxes paid, was $1.4 million. During the year ended December 31, 2018, cash paid for taxes, net of refunds received, was $14.5 million.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. The components of our net deferred tax assets and liabilities at December 31, 2020 and 2019, are summarized as follows:


	December 31, 2020		December 31, 2019
	(thousands)
Deferred tax assets
Employee benefits	$	29,258	$	26,914


Lease liabilities	25,057		23,241

Inventories	3,711		3,358
Foreign net operating loss carryforward	1,279		1,514


Other	6,921		6,256


Deferred tax assets	$	66,226	$	61,283

Deferred tax liabilities
Property and equipment	$	(45,652)	$	(50,751)
Right-of-use assets	(23,256)		(21,753)
Intangible assets and other	(6,823)		(5,924)
Other	(1,298)		(1,597)
Deferred tax liabilities	$	(77,029)	$	(80,025)

Total deferred tax liabilities, net	$	(10,803)	$	(18,742)

As of December 31, 2020, we have foreign net operating loss carryforwards of $9.9 million, which if unused, will expire in years 2032 through 2036. We have state income tax credits totaling $1.3 million as of December 31, 2020, which if unused will expire in years 2021 through 2032. The foreign net operating loss and state credit carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those net operating loss and state credit carryforwards are presented net of these unrecognized tax benefits.


	2020		2019		2018
	(thousands)
Balance as of January 1	$	1,685	$	1,850	$	2,083
Increases related to prior years' tax positions	97		—		13
Increases related to current years' tax positions	89		53		—
Decreases related to prior years' tax positions	—		—		(43)
Lapse of statute of limitations	(91)		(218)		(203)


Balance as of December 31	$	1,780	$	1,685	$	1,850

As of December 31, 2020, 2019, and 2018, we had $1.8 million, $1.7 million, and $1.9 million, respectively, of unrecognized tax benefits recorded on our Consolidated Balance Sheets, excluding interest and penalties. Of the total

unrecognized tax benefits recorded, $1.8 million, $1.7 million, and $1.8 million (net of the federal benefit for state taxes), respectively, would impact the effective tax rate if recognized.

We recognize interest and penalties related to uncertain tax positions as income tax expense in our Consolidated Statements of Operations. For the years ended December 31, 2020, 2019, and 2018, we recognized an insignificant amount of interest and penalties related to taxes. We recognize tax liabilities and adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available or as new uncertainties occur. We do not expect the unrecognized tax benefits to change significantly over the next twelve months.