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Income Taxes | 12 Months Ended
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Dec. 31, 2023
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 (Loss) income before income tax (benefit) provision and the Income tax (benefit) provision for the years ended December 31 are as follows:
| 2023 |  | 2022
(Loss) income before income tax (benefit) provision |  |  |
Domestic | $ | (64,077) |  |  | $ | 87,975 |
Foreign | (81) |  |  | (252) |
| $ | (64,158) |  |  | $ | 87,723 |
Income tax (benefit) provision |  |  |
Current income tax (benefit) provision: |  |  |
Federal | $ | (3,405) |  |  | $ | 20,761 |
State | 290 |  |  | 1,328 |
Foreign | (342) |  |  | (53) |
Total current | (3,457) |  |  | 22,036 |
Deferred income tax (benefit) provision: |  |  |
Federal | (16,467) |  |  | (8,887) |
State | (4,647) |  |  | 416 |
Total deferred | (21,114) |  |  | (8,471) |
| $ | (24,571) |  |  | $ | 13,565 |
The Company made income tax payments of $1.4 million and $23.4 million during 2023 and 2022, respectively. During the same periods, income tax refunds totaled $14.9 million and $0.1 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:
| 2023 |  | 2022
(Loss) income before income tax (benefit) provision | $ | (64,158) |  |  | $ | 87,723 |
Statutory taxes at 21.0% | $ | (13,473) |  |  | $ | 18,422 |
State and local income taxes | (4,392) |  |  | 1,629 |
Non-deductible expenses | 1,071 |  |  | 745 |
Percentage depletion | (3,455) |  |  | (4,866) |
R&D and other federal credits | (109) |  |  | (300) |
Settlements and uncertain tax positions | (3,512) |  |  | (787) |
Other, net | (701) |  |  | (1,278) |
Income tax (benefit) provision | $ | (24,571) |  |  | $ | 13,565 |
Effective income tax rate | 38.3 | % |  | 15.5 | %
The Company recorded an income tax benefit of $24.6 million for the year ended December 31, 2023 on loss before income tax of $64.2 million, or 38.3%, compared to income tax expense of $13.6 million on income before income tax of $87.7 million, or 15.5%, for the year ended December 31, 2022. The year ended December 31, 2023 included $4.0 million of discrete tax benefits, primarily from the reversal of uncertain tax provisions and the impact of U.S. federal provision to return adjustments. Excluding the $4.0 million of discrete tax benefit, the effective income tax rate in 2023 was 32.0%. 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 change in the effective income tax rate for 2023 compared to 2022, excluding the impact of the long-lived asset impairment charge and discrete items, is primarily due to a decrease in earnings at entities that 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
| 2023 |  | 2022
Deferred tax assets |  |  |
Lease liabilities | $ | 22,265 |  |  | $ | 21,880 |
Tax carryforwards | 14,816 |  |  | 12,398 |
Inventories | 4,880 |  |  | 5,571 |
Accrued liabilities | 9,226 |  |  | 8,176 |
Employee benefits | 3,319 |  |  | 3,086 |
Land valuation adjustment | 6,378 |  |  | 6,261 |
Partnership investment - development costs | 12,565 |  |  | — |
Other | 9,680 |  |  | 6,850 |
Total deferred tax assets | 83,129 |  |  | 64,222 |
Less: Valuation allowance | 11,783 |  |  | 11,809 |
| 71,346 |  |  | 52,413 |
Deferred tax liabilities |  |  |
Lease right-of-use assets | 22,611 |  |  | 21,880 |
Depreciation and depletion | 23,607 |  |  | 19,665 |
Partnership investment - development costs | — |  |  | 6,069 |
Accrued pension benefits | 10,047 |  |  | 10,921 |
Total deferred tax liabilities | 56,265 |  |  | 58,535 |
Net deferred asset (liability) | $ | 15,081 |  |  | $ | (6,122) |
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, 2023
| Net deferred tax asset |  | Valuation allowance |  | Carryforwards expire during:
State net operating loss | $ | 16,526 |  |  | $ | 14,757 |  |  | 2024 - 2043
| December 31, 2022
| Net deferred tax asset |  | Valuation allowance |  | Carryforwards expire during:
State net operating loss | $ | 15,347 |  |  | $ | 14,422 |  |  | 2023-2042
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, 2023 and 2022. Approximately $2.8 million and $5.5 million of the gross unrecognized tax benefits as of December 31, 2023 and 2022, 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.
| 2023 |  | 2022 |  |
Balance at January 1 | $ | 9,626 |  |  | $ | 10,554 |  |  |
Decreases based on settlements with tax authorities | — |  |  | (928) |  |  |
Decreases based on lapse of applicable statute of limitations | (3,478) |  |  | — |  |  |
Balance at December 31 | $ | 6,148 |  |  | $ | 9,626 |  |  |
The Company records interest and penalties on uncertain tax positions as a component of the income tax provision. The Company recognized net benefit of less than $0.1 million and net expense of less than $0.1 million in interest and penalties related to uncertain tax positions during 2023 and 2022, respectively. The total amount of interest and penalties accrued was $0.2 million and $0.3 million as of December 31, 2023 and 2022, 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.

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