Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Provision (Benefit) for Income Tax Attributable to Income (Loss) from Continuing Operations before Income Taxes

The provision for income tax attributable to income before income taxes consisted of (in thousands):



	Year Ended December 31,
	2019		2018			2017
Current:
Federal	$	38,782	$	70,098		$	95,814
State	7,253		10,941			8,961
Total current taxes	46,035		81,039			104,775
Deferred:
Federal	9,698		(350		)	37,151
State	8,167		9,863			10,341
Total deferred taxes	17,865		9,513			47,492
Total income tax expense	$	63,900	$	90,552		$	152,267

Effective Tax Rate Differs from Federal Statutory Rate

The Company’s provision for income taxes was different from the amount computed by applying the statutory federal income tax rate of 21% to the underlying income before income taxes as a result of the following (in thousands):



	Year Ended December 31,
	2019			2018			2017
Taxes at the U.S. federal statutory rate	$	56,935		$	76,009		$	118,936
State income taxes, net of federal tax impact	10,221			13,603			10,712
Domestic production activities deduction	—			—			(7,108		)
Non-deductible transaction costs	145			234			541
Change in valuation allowance	(3		)	—			3,256
Tax Cuts and Jobs Act	—			(740		)	21,961
Federal energy credits	(6,873		)	—			—
Other, net	3,475			1,446			3,969
Total income tax expense	$	63,900		$	90,552		$	152,267
Effective income tax rate	23.6		%	25.0		%	44.8		%

Components of Deferred Income Tax Assets

Deferred taxes consisted of the following at December 31, 2019 and 2018 (in thousands):



	Year Ended December 31,
	2019			2018
Deferred tax assets:
Impairment and other valuation reserves	$	31,781		$	37,573
Incentive compensation	5,818			5,946
Indirect costs capitalized	21,160			20,348
Operating lease liability	14,210			—
Net operating loss carryforwards (state)	13,254			18,702
State taxes	1,315			2,275
Other costs and expenses	10,909			10,848
Gross deferred tax assets	98,447			95,692
Valuation allowance	(3,450		)	(3,449		)
Deferred tax assets, net of valuation allowance	94,997			92,243
Deferred tax liabilities:
Interest capitalized	(7,944		)	(7,355		)
Basis difference in inventory	(6,982		)	(8,170		)
Fixed assets	(10,766		)	(2,473		)
Intangibles	(5,062		)	(5,187		)
Operating lease asset	(13,131		)	—
Deferred financing costs	(757		)	(802		)
Other	(451		)	(488		)
Deferred tax liabilities	(45,093		)	(24,475		)
Net deferred tax assets	$	49,904		$	67,768

Schedule of Gross Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits (in thousands):



	Year Ended December 31,
	2019			2018
Balance at beginning of year	$	1,014		$	1,521
Increase (decrease) related to prior year tax positions	(507		)	(507		)
Balance at end of year	$	507		$	1,014