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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:
 20222021
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 
State1,328 1,443 
Foreign(53)(35)
Total current22,036 12,278 
Deferred income tax (benefit) provision:
Federal(8,887)(4,449)
State416 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:
 20222021
Income before income tax provision $87,723 $56,850 
Statutory taxes at 21.0% $18,422 $11,939 
State and local income taxes1,629 1,890 
Non-deductible expenses745 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 rate15.5 %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
 20222021
Deferred tax assets  
Lease liabilities$21,880 $24,500 
Tax carryforwards12,398 13,837 
Inventories5,571 4,522 
Accrued liabilities8,176 9,243 
Employee benefits3,086 3,496 
Land valuation adjustment6,261 5,988 
Other6,850 6,527 
Total deferred tax assets64,222 68,113 
Less: Valuation allowance11,809 11,695 
 52,413 56,418 
Deferred tax liabilities 
Lease right-of-use assets21,880 24,500 
Depreciation and depletion19,665 25,851 
Partnership investment - development costs6,069 9,840 
Accrued pension benefits10,921 10,941 
Total deferred tax liabilities58,535 71,132 
Net deferred liability$(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.
 20222021
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.