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Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract] Ìý
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,
Ìý 2023 2022 2021
Current:
U.S. Federal $ 106,721Ìý $ 117,395Ìý $ 90,920Ìý
State and local 3,796Ìý 3,835Ìý 2,345Ìý
Current income tax expense 110,517Ìý 121,230Ìý 93,265Ìý
Deferred (benefit) expense 1,399Ìý 1,263Ìý (228)
Total income tax expense $ 111,916Ìý $ 122,493Ìý $ 93,037Ìý
Ìý
Although TPL was a trust until JanuaryÌý11, 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,
Ìý 2023 2022 2021
Computed tax expense at the statutory rate of 21% $ 108,688Ìý $ 119,460Ìý $ 76,234Ìý
Reduction in income taxes resulting from:
Statutory depletion (682) (823) (584)
State taxes 3,439Ìý 3,045Ìý 1,740Ìý
Executive compensation 1,117Ìý 1,146Ìý 1,687Ìý
Prior year tax adjustments (305) (13) 18Ìý
Correction of historical tax depletion —Ìý 805Ìý 12,975Ìý
Estimated penalties and interest —Ìý (763) 1,022Ìý
Other, net (341) (364) (55)
Total income tax expense $ 111,916Ìý $ 122,493Ìý $ 93,037Ìý
Effective tax rate 21.6Ìý % 21.5Ìý % 25.6Ìý %

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):
Ìý December 31, 2023 December 31, 2022
Unearned revenue $ 6,717Ìý $ 5,621Ìý
Stock compensation 2,097Ìý 1,256Ìý
Other 760Ìý 48Ìý
Total deferred tax assets 9,574Ìý 6,925Ìý
Property, plant and equipment 17,532Ìý 16,958Ìý
Real estate and royalty interests 33,215Ìý 30,387Ìý
Pension plan asset 767Ìý 731Ìý
Other, net 425Ìý —Ìý
Total deferred tax liabilities 51,939Ìý 48,076Ìý
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.