XML 170 R23.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company provides for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect during the year in which the basis differences reverse. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The components of Income before income tax provision and the Income tax provision for the years ended December 31 are as follows:
| 2022 |  | 2021
Income before income tax provision |  |  |
Domestic | $ | 87,975 |  |  | $ | 57,019 |
Foreign | (252) |  |  | (169) |
| $ | 87,723 |  |  | $ | 56,850 |
Income tax provision |  |  |
Current income tax provision (benefit): |  |  |
Federal | $ | 20,761 |  |  | $ | 10,870 |
State | 1,328 |  |  | 1,443 |
Foreign | (53) |  |  | (35) |
Total current | 22,036 |  |  | 12,278 |
Deferred income tax (benefit) provision: |  |  |
Federal | (8,887) |  |  | (4,449) |
State | 416 |  |  | 896 |
Total deferred | (8,471) |  |  | (3,553) |
| $ | 13,565 |  |  | $ | 8,725 |
The Company made income tax payments of $23.4 million and $11.5 million during 2022 and 2021, respectively. During the same periods, income tax refunds totaled $0.1 million and $2.6 million, respectively. The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before the provision for income taxes. A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows:
| 2022 |  | 2021
Income before income tax provision | $ | 87,723 |  |  | $ | 56,850 |
Statutory taxes at 21.0% | $ | 18,422 |  |  | $ | 11,939 |
State and local income taxes | 1,629 |  |  | 1,890 |
Non-deductible expenses | 745 |  |  | 725 |
Percentage depletion | (4,866) |  |  | (6,245) |
R&D and other federal credits | (300) |  |  | (363) |
Settlements and uncertain tax positions | (787) |  |  | 166 |
Other, net | (1,278) |  |  | 613 |
Income tax provision | $ | 13,565 |  |  | $ | 8,725 |
Effective income tax rate | 15.5 | % |  | 15.3 | %
The Company recorded income tax expense of $13.6 million for the year ended December 31, 2022 on income before income tax of $87.7 million, or 15.5%, compared to income tax expense of $8.7 million on income before income tax of $56.9 million, or 15.3%, for the year ended December 31, 2021. The income tax provision for the year ended December 31, 2022 includes $1.5 million of discrete tax benefits, primarily from the reversal of uncertain tax positions as a result of the conclusion of the IRS examination of the Company’s 2013, 2014, 2015 and 2016 federal income tax returns. Excluding the $1.5 million of discrete tax benefits, the effective income tax rate in 2022 was 17.1%. The year ended December 31, 2021 included $1.0 million of discrete tax expense. Excluding the $1.0 million of discrete tax expense, the effective income tax rate in 2021 was 13.5%. The increase in the effective income tax rate for 2022 compared to 2021, excluding the impact of discrete items, is primarily due to an increase in earnings at entities that do not qualify for percentage depletion. The benefit from percentage depletion is not directly related to the amount of pre-tax income recorded in a period. 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
| 2022 |  | 2021
Deferred tax assets |  |  |
Lease liabilities | $ | 21,880 |  |  | $ | 24,500 |
Tax carryforwards | 12,398 |  |  | 13,837 |
Inventories | 5,571 |  |  | 4,522 |
Accrued liabilities | 8,176 |  |  | 9,243 |
Employee benefits | 3,086 |  |  | 3,496 |
Land valuation adjustment | 6,261 |  |  | 5,988 |
Other | 6,850 |  |  | 6,527 |
Total deferred tax assets | 64,222 |  |  | 68,113 |
Less: Valuation allowance | 11,809 |  |  | 11,695 |
| 52,413 |  |  | 56,418 |
Deferred tax liabilities |  |  |
Lease right-of-use assets | 21,880 |  |  | 24,500 |
Depreciation and depletion | 19,665 |  |  | 25,851 |
Partnership investment - development costs | 6,069 |  |  | 9,840 |
Accrued pension benefits | 10,921 |  |  | 10,941 |
Total deferred tax liabilities | 58,535 |  |  | 71,132 |
Net deferred liability | $ | (6,122) |  |  | $ | (14,714) |
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, 2022
| Net deferred tax asset |  | Valuation allowance |  | Carryforwards expire during:
State net operating loss | $ | 15,347 |  |  | $ | 14,422 |  |  | 2023-2042
| December 31, 2021
| Net deferred tax asset |  | Valuation allowance |  | Carryforwards expire during:
State net operating loss | $ | 17,516 |  |  | $ | 14,694 |  |  | 2022-2041
The Company has a valuation allowance for certain state and foreign deferred tax assets. Based upon the review of historical earnings and the relevant expiration of carryforwards, including utilization limitations in the various state taxing jurisdictions, the Company believes the valuation allowances are appropriate and does not expect to release valuation allowances within the next twelve months that would have a significant effect on the Company's financial position or results of operations. Since 2021, the Company has participated in a voluntary program with the IRS called Compliance Assurance Process (“CAP”). The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most issues prior to the filing of the tax return. In general, the Company operates in taxing jurisdictions that provide a statute of limitations period ranging from three to five years for the taxing authorities to review the applicable tax filings. The tax returns of the Company and certain of its subsidiaries are under routine examination by various taxing authorities. The Company has not been informed of any material assessment for which an accrual has not been previously provided and the Company would vigorously contest any material assessment. Management believes any potential adjustment would not materially affect the Company's financial condition or results of operations. 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, 2022 and 2021. Approximately $5.5 million and $6.4 million of the gross unrecognized tax benefits as of December 31, 2022 and 2021, 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.
| 2022 |  | 2021 |  |
Balance at January 1 | $ | 10,554 |  |  | $ | 10,459 |  |  |
Additions based on tax positions related to prior years | — |  |  | 95 |  |  |
Decreases based on settlements with tax authorities | (928) |  |  | — |  |  |
Balance at December 31 | $ | 9,626 |  |  | $ | 10,554 |  |  |
The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized net expense of less than $0.1 million in interest and penalties related to uncertain tax positions during both 2022 and 2021. The total amount of interest and penalties accrued was $0.3 million and $0.2 million as of December 31, 2022 and 2021, respectively. The Company expects the amount of unrecognized tax benefits will change within the next 12 months; however, the change in unrecognized tax benefits, which is reasonably possible within the next 12 months, is not expected to have a significant effect on the Company's financial position, results of operations or cash flows.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration