Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax provision charged to operations for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands):
Years Ended December 31,
  2023 2022 2021
Current:
U.S. Federal $ 106,721  $ 117,395  $ 90,920 
State and local 3,796  3,835  2,345 
Current income tax expense 110,517  121,230  93,265 
Deferred (benefit) expense 1,399  1,263  (228)
Total income tax expense $ 111,916  $ 122,493  $ 93,037 
 
Although TPL was a trust until January 11, 2021, it was historically taxed as if it were a corporation for income tax purposes prior to its conversion to 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, 2023, 2022 and 2021 to income before Federal income taxes as a result of the following (in thousands):
Years Ended December 31,
  2023 2022 2021
Computed tax expense at the statutory rate of 21% $ 108,688  $ 119,460  $ 76,234 
Reduction in income taxes resulting from:
Statutory depletion (682) (823) (584)
State taxes 3,439  3,045  1,740 
Executive compensation 1,117  1,146  1,687 
Prior year tax adjustments (305) (13) 18 
Correction of historical tax depletion —  805  12,975 
Estimated penalties and interest —  (763) 1,022 
Other, net (341) (364) (55)
Total income tax expense $ 111,916  $ 122,493  $ 93,037 
Effective tax rate 21.6  % 21.5  % 25.6  %

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in thousands):
  December 31, 2023 December 31, 2022
Unearned revenue $ 6,717  $ 5,621 
Stock compensation 2,097  1,256 
Other 760  48 
Total deferred tax assets 9,574  6,925 
Property, plant and equipment 17,532  16,958 
Real estate and royalty interests 33,215  30,387 
Pension plan asset 767  731 
Other, net 425  — 
Total deferred tax liabilities 51,939  48,076 
Deferred taxes payable $ (42,365) $ (41,151)
TPL is subject to taxation in the United States and Texas. TPL is no longer subject to U.S. Federal income tax examination by tax authorities for tax years before 2020.