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Income Taxes
9 Months Ended
Sep. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The income tax provision includes U.S. federal, state and local, and foreign income taxes and is based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or other unusual or non-recurring tax adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated effective annual income tax rate.

A reconciliation of the Company's consolidated federal statutory and effective income tax on income from continuing operations is as follows (in thousands):
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
SEPTEMBER 30
 
SEPTEMBER 30
 
2013
 
2012
 
2013
 
2012
Income from continuing operations before income tax provision:
$
15,484

 
$
13,675

 
$
28,564

 
$
25,255

Statutory taxes at 35%
$
5,419

 
$
4,786

 
$
9,997

 
$
8,839

Discrete items:
 
 
 
 
 
 
 
Other
(727
)
 
(344
)
 
(729
)
 
(323
)
 
(727
)
 
(344
)
 
(729
)
 
(323
)
Other permanent items:
 

 
 

 
 

 
 

NACoal percentage depletion
(1,728
)
 
(1,462
)
 
(3,025
)
 
(2,411
)
Other
195

 
319

 
427

 
619

 
(1,533
)
 
(1,143
)
 
(2,598
)
 
(1,792
)
Income tax provision
$
3,159

 
$
3,299

 
$
6,670

 
$
6,724

Effective income tax rate
20.4
%
 
24.1
%
 
23.4
%
 
26.6
%


As of September 30, 2013, the Company had a $2.5 million liability, included in Other long-term liabilities on the unaudited condensed consolidated balance sheet, for uncertain tax positions associated with prior period returns at NACoal. There is also a $1.8 million long-term asset recorded, recognizing the former Reed Minerals shareholders' contractual obligation to indemnify the Company in connection with a portion of an uncertain tax position.