Annual report pursuant to Section 13 and 15(d)

Note 6 - Income Taxes

v3.8.0.1
Note 6 - Income Taxes
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
6
.
Income Taxes
 
The income tax provision charged to operations for the years ended
December 31, 2017,
2016
and
2015
was as follows (in thousands):
 
   
2017
   
201
6
   
201
5
 
Current:
                       
U.S. Federal
  $
46,013
    $
21,665
    $
25,030
 
State and local
   
851
     
376
     
400
 
     
46,864
     
22,041
     
25,430
 
Deferred benefit
   
(3,365
)    
(4,194
)    
(186
)
    $
43,499
    $
17,847
    $
25,244
 
 
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
35%
to income before Federal income taxes as a result of the following
(in thousands):
 
   
201
7
   
201
6
   
201
5
 
Computed tax expense at the statutory rate
  $
41,951
    $
19,280
    $
26,349
 
Reduction in income taxes resulting from:
                       
Statutory depletion
   
(3,378
)    
(1,609
)    
(1,321
)
State taxes
   
397
     
205
     
257
 
Effect of change in statutory tax rate
(1)
   
4,519
     
     
 
Other, net
   
10
     
(29
)    
(41
)
    $
43,499
    $
17,847
    $
25,244
 
                         
 
 
(
1
)
The effect of the anticipated change in statutory income tax rate from
35%
to
21%
effective
January 1, 2018.
 
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at
December 31,
201
7
and
2016
are as follows (in thousands):
 
   
201
7
   
201
6
 
Deferred revenue
  $
8,902
    $
4,177
 
Basis difference in pension plan liability
   
     
(36
)
Total deferred tax assets
   
8,902
     
4,141
 
                 
Basis differences in property, plant and equipment
   
1,691
     
 
Basis differences in real estate acquired through foreclosure
   
142
     
234
 
Basis difference in pension plan liability
   
68
     
 
Deferred installment revenue on land sales for tax purposes
   
9
     
32
 
Total deferred tax liability
   
1,910
     
266
 
Net deferred tax asset
  $
6,992
    $
3,875
 
 
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
201
4.