Taxes on Income

12 Months Ended

Dec. 31, 2024

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,
	2024			2023			2022
Earnings (loss) before taxes on income:
United States	$	363,563		$	293,011		$	164,590
Foreign		(800	)		1,114			385
	$	362,763		$	294,125		$	164,975
Provision (benefit) for taxes on income:
U.S. Federal:
Current	$	36,520		$	(41	)	$	513
Deferred		41,548			61,205			34,980
	$	78,068		$	61,164		$	35,493
U.S. State:
Current	$	7,886		$	5,498		$	3,793
Deferred		(10,160	)		4,093			2,802
	$	(2,274	)	$	9,591		$	6,595
Foreign:
Current	$	73		$	465		$	126
	$	73		$	465		$	126
Consolidated:
Current	$	44,479		$	5,922		$	4,432
Deferred		31,388			65,298			37,782
	$	75,867		$	71,220		$	42,214

In April 2023, the Company received a federal income tax refund of $70.4 million plus accrued interest.

Tax reform legislation in Louisiana was signed in December 2024 that included reducing the corporate income tax rate from 7.5% to 5.5% effective January 1, 2025. As a result of the new legislation, the Company recognized a one-time deferred tax benefit of $10.9 million in the 2024 fourth quarter due to the remeasurement of the Company’s Louisiana and U.S. deferred tax assets and liabilities based on the new effective Louisiana state income tax rate.

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,
	2024			2023			2022
United States income tax statutory rate		21.0	%		21.0	%		21.0	%
State and local taxes, net of federal benefit		(0.5	)		2.6			3.1
Other – net		0.4			0.6			1.5
		20.9	%		24.2	%		25.6	%

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,
	2024			2023
Deferred tax assets:
Allowance for doubtful accounts	$	1,492		$	1,549
Inventory		20,872			10,500
Insurance accruals		5,523			6,077
Deferred compensation		5,718			11,441
Unrealized gain on defined benefit plans		(19,900	)		(9,982	)
Goodwill and other intangibles		26,888			39,719
Operating loss carryforwards		21,369			52,082
Retirement benefits		1,801			3,548
Other		20,178			13,467
		83,941			128,401
Valuation allowances		(13,667	)		(22,073	)
		70,274			106,328
Deferred tax liabilities:
Property		(717,808	)		(695,233	)
Deferred state taxes		(78,633	)		(90,457	)
Other		(13,305	)		(17,195	)
		(809,746	)		(802,885	)
	$	(739,472	)	$	(696,557	)

During 2024, the Company generated federal taxable income which was partially offset by federal net operating loss carryforwards. The Company had no federal operating loss deferred tax assets at December 31, 2024. The Company had federal operating loss deferred tax assets of $19.8 million at December 31, 2023.

The Company had state operating loss deferred tax assets of $16.6 million and $27.2 million at December 31, 2024 and 2023, respectively. The valuation allowance for state deferred tax assets as of December 31, 2024 and 2023 was $8.9 million and $17.0 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 2031 and none will expire in fiscal 2025.

As of December 31, 2024 and 2023, the Company had a Canadian net operating loss carryforward of $4.7 million which expires between 2037 and 2044. 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 2018 through 2023 tax years.

As of December 31, 2024, the Company has provided a liability of $1.2 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 $1.0 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, 2025 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,
	2024			2023			2022
Balance at beginning of year	$	648		$	662		$	737
Additions based on tax positions related to the current year		393			—			13
Additions for tax positions of prior years		494			—			66
Reductions for tax positions of prior years		—			(14	)		(154	)
Settlements		(606	)		—			—
Balance at end of year	$	929		$	648		$	662

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, 2024 and 2023.