Taxes on Income

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Taxes on Income

(9) Taxes on Income

Earnings (loss) before taxes on income and details of the provision (benefit) for taxes on income were as follows (in thousands):

	Year Ended December 31,
	2023			2022		2021
Earnings (loss) before taxes on income:
United States	$	293,011		$	164,590	$	(290,181	)
Foreign		1,114			385		(420	)
	$	294,125		$	164,975	$	(290,601	)
Provision (benefit) for taxes on income:
U.S. Federal:
Current	$	(41	)	$	513	$	(460	)
Deferred		61,205			34,980		(48,843	)
	$	61,164		$	35,493	$	(49,303	)
U.S. State:
Current	$	5,498		$	3,793	$	1,560
Deferred		4,093			2,802		4,424
	$	9,591		$	6,595	$	5,984
Foreign:
Current	$	465		$	126	$	(511	)
	$	465		$	126	$	(511	)
Consolidated:
Current	$	5,922		$	4,432	$	589
Deferred		65,298			37,782		(44,419	)
	$	71,220		$	42,214	$	(43,830	)

On November 13, 2021, the voters of the state of Louisiana approved a constitutional amendment that removed the corporate tax deduction for federal income taxes paid and lowered the corporate income tax rate from 8% to 7.5% effective January 1, 2022. The result of the amendment was an increase in the effective Louisiana state income tax rate, net of deduction for federal income tax, from 6.3% to 7.5%. As a result of the amendment, the Company recognized a one-time deferred tax provision of $5.7 million during the fourth quarter of 2021 due to remeasuring the Company’s Louisiana and U.S. deferred tax assets and liabilities based on the new effective Louisiana state income tax rate.

During 2021, the Company received a tax refund of $119.5 million, including accrued interest, for its 2019 tax return related to net operating losses being carried back to offset taxable income generated between 2014 and 2017.

At December 31, 2022, the Company had a federal income tax receivable of $70.4 million, included in Accounts Receivable – Other on the balance sheet. In April 2023, the Company received its tax refund of $70.4 million plus accrued interest.

The Company’s provision (benefit) for taxes on income varied from the statutory federal income tax rate due to the following:

	Year Ended December 31,
	2023			2022			2021
United States income tax statutory rate		21.0	%		21.0	%		21.0	%
State and local taxes, net of federal benefit		2.6			3.1			(1.7	)
Other – net		0.6			1.5			(4.2	)
		24.2	%		25.6	%		15.1	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2023			2022
Deferred tax assets:
Allowance for doubtful accounts	$	1,549		$	1,556
Inventory		10,500			11,679
Insurance accruals		6,077			4,856
Deferred compensation		11,441			7,703
Unrealized gain on defined benefit plans		(9,982	)		(5,532	)
Goodwill and other intangibles		39,719			52,847
Operating loss carryforwards		52,082			79,699
Retirement benefits		3,548			5,472
Other		13,467			9,962
		128,401			168,242
Valuation allowances		(22,073	)		(19,960	)
		106,328			148,282
Deferred tax liabilities:
Property		(695,233	)		(671,830	)
Deferred state taxes		(90,457	)		(87,445	)
Other		(17,195	)		(14,891	)
		(802,885	)		(774,166	)
	$	(696,557	)	$	(625,884	)

During 2023, the Company generated federal taxable income which was completely offset by federal net operating loss carryforwards. The Company had federal operating loss deferred tax assets of $19.8 million and $47.9 million at December 31, 2023 and 2022, respectively.

The Company had state operating loss deferred tax assets of $27.2 million and $26.6 million at December 31, 2023 and 2022, respectively. The valuation allowance for state deferred tax assets as of December 31, 2023 and 2022 was $17.0 million and $14.8 million, respectively, related to the Company’s state net operating loss carryforwards based on the Company’s determination that it is more likely than not that the deferred tax assets will not be realized. Expiration of these state net operating loss carryforwards vary by state through 2030 and none will expire in fiscal 2024.

As of December 31, 2023 and 2022, the Company had a Canadian net operating loss carryforward of $5.1 million which expires between 2037 and 2043. A full valuation allowance has been provided for this asset.

The Company or one of its subsidiaries files income tax returns in the United States federal jurisdiction and various state jurisdictions. During the first quarter of 2023, the Internal Revenue Service (“IRS”) communicated to the Company that it had completed its examination of the Company’s federal income tax returns for the years 2013 through 2020. With few exceptions, the Company and its subsidiaries’ state income tax returns are open to audit under the statute of limitations for the 2017 through 2022 tax years.

As of December 31, 2023, the Company has provided a liability of $0.8 million for unrecognized tax benefits related to various income tax issues which includes interest and penalties. The amount that would impact the Company’s effective tax rate, if recognized, is $0.7 million, with the difference between the total amount of unrecognized tax benefits and the amount that would impact the effective tax rate being primarily related to the federal tax benefit of state income tax items. It is not reasonably possible to determine if the liability for unrecognized tax benefits will significantly change prior to December 31, 2024 due to the uncertainty of possible examination results.

A reconciliation of the beginning and ending amount of the liability for unrecognized tax benefits is as follows (in thousands):

	Year Ended December 31,
	2023			2022			2021
Balance at beginning of year	$	662		$	737		$	783
Additions based on tax positions related to the current year		—			13			13
Additions for tax positions of prior years		—			66			281
Reductions for tax positions of prior years		(14	)		(154	)		(340	)
Balance at end of year	$	648		$	662		$	737

The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes. The Company had $0.2 million of accrued liabilities for the payment of interest and penalties at both December 31, 2023 and 2022.