| Income Taxes |
The income tax provision charged to operations for the years ended DecemberÌý31, 2018, 2017 and 2016 was as follows (in thousands):Ìý
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|
|
|
|
|
|
|
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|
Ìý |
Years Ended December 31, |
Ìý |
2018 |
Ìý |
2017 |
Ìý |
2016 |
Current: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Federal |
$ |
35,593 |
|
Ìý |
$ |
46,013 |
|
Ìý |
$ |
21,665 |
|
State and local |
1,607 |
|
Ìý |
851 |
|
Ìý |
376 |
|
Ìý |
37,200 |
|
Ìý |
46,864 |
|
Ìý |
22,041 |
|
Deferred expense (benefit) |
14,814 |
|
Ìý |
966 |
|
Ìý |
(1,420 |
) |
Ìý |
$ |
52,014 |
|
Ìý |
$ |
47,830 |
|
Ìý |
$ |
20,621 |
|
Ìý
The Trust is taxed as if it were a corporation. Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016 to income before Federal income taxes as a result of the following (in thousands):Ìý
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|
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|
|
|
|
Ìý |
Years Ended December 31, |
Ìý |
2018 |
Ìý |
2017 |
Ìý |
2016 |
Computed tax expense at the statutory rate |
$ |
54,968 |
|
Ìý |
$ |
50,771 |
|
Ìý |
$ |
22,014 |
|
Reduction in income taxes resulting from: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Statutory depletion |
(4,185 |
) |
Ìý |
(3,378 |
) |
Ìý |
(1,609 |
) |
State taxes |
1,243 |
|
Ìý |
530 |
|
Ìý |
231 |
|
Effect of change in statutory tax rate (1)
|
— |
|
Ìý |
(103 |
) |
Ìý |
— |
|
Other, net |
(12 |
) |
Ìý |
10 |
|
Ìý |
(15 |
) |
Ìý |
$ |
52,014 |
|
Ìý |
$ |
47,830 |
|
Ìý |
$ |
20,621 |
|
|
|
(1) |
The effect of the change in statutory income tax rate from 35% to 21% effective JanuaryÌý1, 2018 which was anticipated as of December 31, 2017.
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The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at DecemberÌý31, 2018 and 2017 are as follows (in thousands):Ìý
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|
|
|
|
|
|
|
|
Ìý |
DecemberÌý31, 2018 |
Ìý |
DecemberÌý31, 2017 |
Deferred revenue |
$ |
2,878 |
|
Ìý |
$ |
1,796 |
|
Total deferred tax assets |
2,878 |
|
Ìý |
1,796 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Basis differences in property, plant and equipment |
10,723 |
|
Ìý |
1,691 |
|
Deferred gains on 1031 exchanges |
6,791 |
|
Ìý |
— |
|
Basis differences in real estate acquired through foreclosure |
142 |
|
Ìý |
142 |
|
Basis difference in pension plan liability |
119 |
|
Ìý |
68 |
|
Deferred installment revenue on land sales for tax purposes |
6 |
|
Ìý |
9 |
|
Total deferred tax liability |
17,781 |
|
Ìý |
1,910 |
|
Net deferred tax liability |
$ |
(14,903 |
) |
Ìý |
$ |
(114 |
) |
Ìý |
Ìý |
Ìý |
Ìý |
The Trust files a U. S. Federal income tax return. With few exceptions, the Trust is no longer subject to U. S. Federal income tax examination by tax authorities for years before 2015.
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