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Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract] Ìý
Income Taxes Income Taxes
The income tax provision charged to operations for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands):Ìý

Years Ended December 31,
Ìý 2019 2018 2017
Current:
U.S. Federal $ 55,562Ìý Ìý $ 35,593Ìý Ìý $ 46,013Ìý Ìý
State and local 1,930Ìý Ìý 1,607Ìý Ìý 851Ìý Ìý
Ìý 57,492Ìý Ìý 37,200Ìý Ìý 46,864Ìý Ìý
Deferred expense 26,035Ìý Ìý 14,814Ìý Ìý 966Ìý Ìý
Ìý $ 83,527Ìý Ìý $ 52,014Ìý Ìý $ 47,830Ìý Ìý
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 years ended December 31, 2019 and 2018 and 35% for the year ended 2017 to income before Federal income taxes as a result of the following (in thousands):Ìý

Years Ended December 31,
Ìý 2019 2018 2017
Computed tax expense at the statutory rate $ 84,473Ìý Ìý $ 54,968Ìý Ìý $ 50,771Ìý Ìý
Reduction in income taxes resulting from:
Statutory depletion (5,163) Ìý (4,185) Ìý (3,378) Ìý
State taxes 1,657Ìý Ìý 1,243Ìý Ìý 530Ìý Ìý
Executive compensation 1,302Ìý Ìý —Ìý Ìý —Ìý Ìý
Prior year tax adjustments 755Ìý Ìý —Ìý Ìý —Ìý Ìý
Effect of change in statutory tax rate (1)
—Ìý Ìý —Ìý Ìý (103) Ìý
Other, net 503Ìý Ìý (12) Ìý 10Ìý Ìý
Ìý $ 83,527Ìý Ìý $ 52,014Ìý Ìý $ 47,830Ìý Ìý

Ìý
(1)The effect of the change in statutory income tax rate from 35% to 21% effective January 1, 2018 which was anticipated as of December 31, 2017.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2019 and 2018 are as follows (in thousands):Ìý

Ìý December 31, 2019 December 31, 2018
Unearned revenue $ 3,741Ìý Ìý $ 2,878Ìý Ìý
Total deferred tax assets 3,741Ìý Ìý 2,878Ìý Ìý
Property, plant and equipment 17,030Ìý Ìý 10,723Ìý Ìý
§1031 tax exchanges 26,638Ìý Ìý 6,791Ìý Ìý
Deferred credits 748Ìý Ìý —Ìý Ìý
Real estate acquired through foreclosure 142Ìý Ìý 142Ìý Ìý
Other 10Ìý Ìý 125Ìý Ìý
Total deferred tax liability 44,568Ìý Ìý 17,781Ìý Ìý
Net deferred tax liability $ (40,827) Ìý $ (14,903) 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 2016.