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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income tax attributable to income before income taxes consisted of (in thousands):
 Year Ended December 31,
 202320222021
Current:   
Federal$97,436 $142,045 $130,700 
State23,873 26,513 35,266 
Total current taxes121,309 168,558 165,966 
Deferred:   
Federal(5,926)8,812 (8,771)
State2,781 13,433 (800)
Total deferred taxes(3,145)22,245 (9,571)
Total income tax expense$118,164 $190,803 $156,395 
 
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,
 202320222021
Taxes at the U.S. federal statutory rate$98,122 $162,371 $131,373 
State income taxes, net of federal tax impact20,138 32,262 27,234 
Non-deductible transaction costs— 49 136 
Federal energy credits(3,760)(5,487)(5,429)
Other, net3,664 1,608 3,081 
Total income tax expense$118,164 $190,803 $156,395 
Effective income tax rate25.3 %24.7 %25.0 %
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax basis, and for operating loss and tax credit carryforwards. Deferred taxes consisted of the following at December 31, 2023 and 2022 (in thousands):
Year Ended
December 31,
 20232022
Deferred tax assets:  
Impairment and other valuation reserves$16,733 $21,832 
Incentive compensation11,512 9,923 
Indirect costs capitalized19,857 13,204 
Operating lease liability19,401 19,413 
Net operating loss carryforwards (state)— 1,629 
State taxes5,092 5,699 
Other costs and expenses10,851 12,524 
Gross deferred tax assets83,446 84,224 
Valuation allowance(3,372)(3,413)
Deferred tax assets, net of valuation allowance80,074 80,811 
Deferred tax liabilities:  
Interest capitalized(3,355)(5,340)
Basis difference in inventory(5,302)(5,523)
Fixed assets(12,896)(14,281)
Intangibles(4,200)(4,227)
Operating lease asset(15,847)(15,883)
Deferred financing costs(394)(507)
Other(84)(199)
Deferred tax liabilities(42,078)(45,960)
Net deferred tax assets$37,996 $34,851 
The Company accounts for income taxes in accordance with ASC 740, which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statements and tax bases of assets and liabilities using enacted tax rates for the years in which taxes are expected to be paid or recovered. Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable. Our assessment considers, among other things, the nature, frequency and severity of our current and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods and tax planning alternatives.
As of December 31, 2023, the Company did not have any federal or state net operating loss carryforwards. As of December 31, 2023 and 2022, we had a valuation allowance on our deferred tax assets of $3.4 million. The valuation allowance as of December 31, 2023 and 2022 primarily related to an impairment of our investment in an unconsolidated joint venture that, if dissolved, would result in a capital loss, the realization of which is uncertain.
The Company will continue to evaluate both positive and negative evidence in determining the need for a valuation allowance against its deferred tax assets. Changes in positive and negative evidence, including differences between the Company’s future operating results and the estimates utilized in the determination of the valuation allowance, could result in changes in the Company’s estimate of the valuation allowance against its deferred tax assets. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation allowance against the Company’s deferred tax assets.
The Company files income tax returns in the U.S., including federal and multiple state and local jurisdictions. The Company’s tax years 2019 to 2022 will remain open to examination by the federal and state authorities for three and four years, respectively, from the date of utilization of any net operating loss or credit carryforwards.
Unrecognized tax benefits represent potential future obligations to taxing authorities if uncertain tax positions we have taken on previously filed tax returns are not sustained. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were not sustained, such as federal deduction that could be realized if an unrecognized state deduction was not sustained. We did not have any unrecognized tax benefits as of December 31, 2023 and 2022. The Company classifies interest and penalties related to unrecognized tax benefits as part of income tax expense. The Company did not record any income tax expense for interest and penalties on uncertain tax positions during the years ended December 31, 2023, 2022 and 2021.