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Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract] Ìý
Income Taxes Income Taxes
The income tax provision charged to operations for the years ended December 31, 2024, 2023 and 2022 was as follows (in thousands):
Years Ended December 31,
Ìý 2024 2023 2022
Current:
U.S. Federal $ 116,323Ìý $ 106,721Ìý $ 117,395Ìý
State and local 3,934Ìý 3,796Ìý 3,835Ìý
Current income tax expense 120,257Ìý 110,517Ìý 121,230Ìý
Deferred expense 4,604Ìý 1,399Ìý 1,263Ìý
Total income tax expense $ 124,861Ìý $ 111,916Ìý $ 122,493Ìý

Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21% for the years ended December 31, 2024, 2023 and 2022 to income before Federal income taxes as a result of the following (in thousands):
Years Ended December 31,
Ìý 2024 2023 2022
Computed tax expense at the statutory rate of 21% $ 121,552Ìý $ 108,688Ìý $ 119,460Ìý
Reduction in income taxes resulting from:
State taxes 3,182Ìý 3,439Ìý 3,045Ìý
Executive compensation 1,803Ìý 1,117Ìý 1,146Ìý
Research and development credit (850) —Ìý —Ìý
Statutory depletion (653) (682) (823)
Prior year tax adjustments 75Ìý (305) (13)
Correction of historical tax depletion —Ìý —Ìý 805Ìý
Estimated penalties and interest —Ìý —Ìý (763)
Other, net (248) (341) (364)
Total income tax expense $ 124,861Ìý $ 111,916Ìý $ 122,493Ìý
Effective tax rate 21.6Ìý % 21.6Ìý % 21.5Ìý %
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows (in thousands):
Ìý December 31, 2024 December 31, 2023
Unearned revenue $ 5,879Ìý $ 6,717Ìý
Stock compensation 2,677Ìý 2,097Ìý
Other 533Ìý 760Ìý
Total deferred tax assets 9,089Ìý 9,574Ìý
Property, plant and equipment 20,723Ìý 17,532Ìý
Real estate and royalty interests 33,581Ìý 33,215Ìý
Pension plan asset 1,901Ìý 767Ìý
Other, net 285Ìý 425Ìý
Total deferred tax liabilities 56,490Ìý 51,939Ìý
Deferred taxes payable $ (47,401) $ (42,365)
TPL is subject to taxation in the United States, Texas and New Mexico. TPL is no longer subject to U.S. Federal income tax examination by tax authorities for tax years before 2021.