Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES:

The components of income tax expense were as follows:

	For the Years Ended December 31,
	2023		2022		2021
Current:
U.S. Federal	$	100,572	$	45,068	$	13,769
U.S. State	7,287		7,238		2,145
Non-U.S.	—		(235)		143
	107,859		52,071		16,057
Deferred:
U.S. Federal	12,528		37,154		(16,657)
U.S. State	1,593		12,233		1,897
	14,121		49,387		(14,760)
Total Income Tax Expense	$	121,980	$	101,458	$	1,297

A reconciliation of income tax expense and the amount computed by applying the statutory federal income tax rate of 21% to income from operations before income tax is:

	For the Years Ended December 31,
	2023				2022				2021
	Amount		Percent		Amount		Percent		Amount		Percent
Statutory U.S. federal income tax rate	$	163,353	21.0	%	$	119,372	21.0	%	$	7,436	21.0	%
State income taxes, net of federal tax benefit	7,618		1.0		11,110		2.0		(642)		(1.8)
Effect of foreign income taxes	—		—		(241)		—		125		0.4
Excess tax depletion	(26,802)		(3.5)		(32,431)		(5.7)		(10,535)		(29.8)
Foreign derived intangible income	(23,545)		(3.0)		(4,906)		(0.9)		—		—
Uncertain tax positions	36		—		(792)		(0.1)		1,473		4.2
Compensation	2,284		0.3		4,178		0.7		3,192		9.0
Valuation allowance	—		—		(937)		(0.2)		(544)		(1.5)
Tax credits	(700)		(0.1)		(350)		(0.1)		(210)		(0.6)
State rate change and prior period adjustments	(809)		(0.1)		5,397		0.9		642		1.8
Other	545		0.1		1,058		0.2		360		1.0
Income Tax Expense / Effective Rate	$	121,980	15.7	%	$	101,458	17.8	%	$	1,297	3.7	%

Significant components of deferred tax assets and liabilities were as follows:

	December 31,
	2023		2022
Deferred Tax Asset:
Postretirement benefits other than pensions	$	47,730	$	56,119
Asset retirement obligations	41,400		44,680
Pneumoconiosis benefits	33,867		33,946
Compensation	8,317		8,826
Workers' compensation	6,461		7,099
State bonus, net of Federal	1,917		2,973
Long-term disability	1,280		1,463
Operating lease liability	1,033		46
Net operating loss	238		211
Financing	124		838
Other	8,910		4,957
Total Deferred Tax Asset	151,277		161,158
Valuation Allowance	—		—
Net Deferred Tax Asset	151,277		161,158
Deferred Tax Liability:
Equity Partnerships	(122,220)		(118,231)
Property, plant and equipment	(52,409)		(54,322)
Advance mining royalties	(6,476)		(6,782)
Salary retirement	(5,468)		(3,737)
Right of use assets	(923)		—
Total Deferred Tax Liability	(187,496)		(183,072)
Net Deferred Tax Liability	$	(36,219)	$	(21,914)

At December 31, 2023, the Company has net operating loss carryforwards of approximately $238 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, 2023 and 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, 2023 and 2022, a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	December 31,
	2023		2022
Balance at January 1	$	1,941	$	3,633
Additions based on tax positions related to the current year	22		384
Additions for tax positions of prior years	24		—
Reductions for tax positions of prior years	—		(1,168)
Reductions due to the statute of limitations	—		—
Settlements	—		(908)
Balance at December 31	$	1,987	$	1,941

The Company recorded an unrecognized tax benefit for the tax years ending December 31, 2023 and 2022 of $1,987 and $1,941, 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 2023 for federal and state returns.