XML 97 R16.htm IDEA: XBRL DOCUMENT v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES:
The components of income tax expense (benefit) were as follows:
 For the Years Ended December 31,
 202220212020
Current:   
U.S. Federal$45,068 $13,769 $(5,933)
U.S. State7,238 2,145 (2,294)
Non-U.S.(235)143 514 
 52,071 16,057 (7,713)
Deferred:   
U.S. Federal37,154 (16,657)10,936 
U.S. State12,233 1,897 749 
 49,387 (14,760)11,685 
    
Total Income Tax Expense$101,458 $1,297 $3,972 
A reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 21% to income (loss) from operations before income tax is:
 For the Years Ended December 31,
 202220212020
 AmountPercentAmountPercentAmountPercent
Statutory U.S. federal income tax rate$119,372 21.0 %$7,436 21.0 %$(1,941)21.0 %
State income taxes, net of federal tax benefit11,110 2.0 (642)(1.8)(1,109)12.0 
Effect of foreign income taxes(241)— 125 0.4 406 (4.4)
Excess tax depletion(32,431)(5.7)(10,535)(29.8)— — 
Foreign derived intangible income(4,906)(0.9)— — — — 
Uncertain tax positions(792)(0.1)1,473 4.2 — — 
Compensation4,178 0.7 3,192 9.0 1,310 (14.2)
Valuation allowance(937)(0.2)(544)(1.5)1,479 (16.0)
Tax credits(350)(0.1)(210)(0.6)1,150 (12.4)
Non-controlling interest— — — — 726 (7.9)
State rate change and prior period adjustments5,397 0.9 642 1.8 1,797 (19.4)
Other1,058 0.2 360 1.0 154 (1.6)
Income Tax Expense / Effective Rate$101,458 17.8 %$1,297 3.7 %$3,972 (42.9)%
Significant components of deferred tax assets and liabilities were as follows:
 December 31,
 20222021
Deferred Tax Asset:  
Postretirement benefits other than pensions$56,119 $84,130 
Asset retirement obligations44,680 47,180 
Pneumoconiosis benefits33,946 47,681 
Compensation8,826 5,203 
Workers' compensation7,099 11,419 
State bonus, net of Federal2,973 4,219 
Long-term disability1,463 1,931 
Financing838 — 
Net operating loss211 937 
Operating lease liability46 135 
Other4,957 5,772 
Total Deferred Tax Asset161,158 208,607 
Valuation Allowance— (937)
Net Deferred Tax Asset161,158 207,670 
   
Deferred Tax Liability:  
Equity Partnerships(118,231)(99,811)
Property, plant and equipment(54,322)(40,064)
Advance mining royalties(6,782)(7,270)
Salary retirement(3,737)(2,739)
Financing— (640)
Right of use assets— (135)
Total Deferred Tax Liability(183,072)(150,659)
   
Net Deferred Tax (Liability) Asset$(21,914)$57,011 
The Company continues to evaluate the impacts of the Inflation Reduction Act of 2022 signed into law by the President of the United States on August 16, 2022, but does not expect this legislation to have a material impact on the Company's financial statements.
At December 31, 2022, the Company has net operating loss carryforwards of approximately $207 for state income tax purposes, which will, if ultimately utilized, offset future taxable income. These net operating losses, if unused, will expire in 2041.
As required by U.S. GAAP, a valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Management must review all available evidence, both positive and negative, in determining the need for a valuation allowance. As of December 31, 2022, no valuation allowance has been recorded.
Unrecognized Tax Benefits
The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements. For the years ended December 31, 2022 and 2021, a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 December 31,
 20222021
   
Balance at January 1$3,633 $— 
Additions based on tax positions related to the current year384 774 
Additions for tax positions of prior years— 2,859 
Reductions for tax positions of prior years(1,168)— 
Reductions due to the statute of limitations— — 
Settlements(908)— 
   
Balance at December 31$1,941 $3,633 
The Company recorded an unrecognized tax benefit for the tax years ending December 31, 2022 and 2021 of $1,941 and $3,633, respectively, related to a position taken on state taxes. The actual amount of any change to the unrecognized tax benefit could vary depending on the timing and nature of the settlement; therefore, an estimate of change cannot be provided. Related interest and penalties were not accrued as these were estimated to be immaterial.
The Company is subject to taxation in the United States and its various states, as well as Canada and its various provinces. The Company is subject to examination for the tax periods 2018 through 2022 for federal and state returns.