Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.20.4
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax provision charged to operations for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands):
Years Ended December 31,
  2020 2019 2018
Current:
U.S. Federal $ 44,395  $ 55,562  $ 35,593 
State and local 1,607  1,930  1,607 
Current income tax expense 46,002  57,492  37,200 
Deferred (benefit) expense (2,389) 26,035  14,814 
Total income tax expense $ 43,613  $ 83,527  $ 52,014 
 
While TPL was a trust, it was 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 years ended December 31, 2020, 2019 and 2018 to income before Federal income taxes as a result of the following (in thousands):
Years Ended December 31,
  2020 2019 2018
Computed tax expense at the statutory rate of 21% $ 46,129  $ 84,473  $ 54,968 
Reduction in income taxes resulting from:
Statutory depletion (4,577) (5,163) (4,185)
State taxes 1,234  1,657  1,243 
Executive compensation 789  1,302  — 
Prior year tax adjustments 7  755  — 
Other, net 31  503  (12)
Total income tax expense $ 43,613  $ 83,527  $ 52,014 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows (in thousands): 
  December 31, 2020 December 31, 2019
Unearned revenue $ 5,633  $ 3,741 
Basis difference in pension plan liability 452  — 
Total deferred tax assets 6,085  3,741 
Property, plant and equipment 16,314  17,030 
§1031 tax exchanges 26,499  26,638 
Deferred credits 1,853  748 
Real estate acquired through foreclosure 142  142 
Other 5  10 
Total deferred tax liabilities 44,813  44,568 
Deferred taxes payable $ (38,728) $ (40,827)
TPL files a U. S. Federal income tax return. With few exceptions, TPL is no longer subject to U. S. Federal income tax examination by tax authorities for years before 2017.