Texas Pacific Land Corporation Annual report pursuant to Section 13 and 15(d)

Note 2 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Fencing, w ater wells and water well fields (in years)	10	to	15
Software developed for internal use (in years)		5
Office furniture , equipment and vehicles (in years)	5	to	7

	As reported			New Revenue Standard Adjustment			As Adjusted
Consolidated Statements of Income :
For the year ended December 31, 2017
Revenue	$	132,329		$	22,305		$	154,634
Taxes, other than income taxes		3,161			(2,896	)		265
Income taxes — deferred		(3,365	)		4,331			966
Net income		76,361			20,870			97,231
Net income per Sub-share Certificate		9.72			2.66			12.38

For the year ended December 31, 201 6
Revenue	$	59,911		$	6,197		$	66,108
Taxes, other than income taxes		1,779			(1,612	)		167
Income taxes — deferred		(4,194	)		2,774			(1,420	)
Net income		37,240			5,035			42,275
Net income per Sub-share Certificate		4.66			0.63			5.29

Consolidated Balance Sheets:
As of December 31, 2017
Assets:
Accrued receivables	$	18,205		$	(433	)	$	17,772
Deferred tax asset (liability)		6,992			(7,106	)		(114	)

Liabilities and Capital:
Unearned revenue	$	41,375		$	(33,011	)	$	8,364
Other taxes payable		433			(433	)		—
Net proceeds from all sources		79,997			25,905			105,902

As of December 31, 2016
Assets:
Accrued receivables	$	6,550		$	(277	)	$	6,273
Deferred tax asset		3,875			(2,774	)		1,101

Liabilities and Capital:
Unearned revenue	$	11,775		$	(7,809	)	$	3,966
Other taxes payable		277			(277	)		—
Net proceeds from all sources		48,584			5,035			53,619

	2017			2016			2015
Increase/(decrease) in operating income	$	(30	)	$	44		$	51
Increase/(decrease) in other income		30			(44	)		(51	)