Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

The (benefit) expense for income taxes consists of:

	Years Ended December 31,
	2024		2023		2022
Current:
Federal	$	(3,754)	$	1,293	$	77,374
State	147		163		7,710
Deferred and Other:
Federal	—		—		13,024
State	—		—		—
Total tax (benefit) expense	$	(3,607)	$	1,456	$	98,108

The reconciliation between our effective tax rate on income from operations and the statutory rate is as follows:

	Years Ended December 31,
	2024			2023			2022
Income tax (benefit) expense at federal statutory rate	$	(3,598)		$	1,293		$	118,940
State and local income taxes net of federal tax expense	147			163			7,705
Temporary tax differences
Change in valuation allowance	(156)			—			(28,537)
Reported tax (benefit) expense	$	(3,607)		$	1,456		$	98,108
Effective tax rate	21.0		%	23.6		%	24.9		%

We are subject to taxation in the United States and various states and foreign jurisdictions.  As of December 31, 2024, our tax years for 2021 through 2024 are subject to examination by the tax authorities.  With few exceptions, as of December 31, 2024, we are no longer subject to U.S federal, state, local, or foreign examinations by tax authorities for the years before 2021.

Components of the Net Deferred Tax Asset:

	December 31,
	2024		2023
Deferred tax asset:
Basis difference in fixed assets	$	2,333	$	1,952
Deferred gain and net operating loss carryforward	3,372		122
Net deferred tax asset	$	5,705	$	2,074

We have state net operating losses in many of the various states in which we operate.