Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Income Tax Expense (Benefit)

The components of income (loss) from continuing operations before income tax provision (benefit) and the income tax provision (benefit) for the years ended December 31 are as follows:



	2014			2013			2012
Income (loss) from continuing operations before income tax provision (benefit)
Domestic	$	(74,402	)	$	54,630		$	53,167
Foreign	(2,171		)	1,090			4,861
	$	(76,573	)	$	55,720		$	58,028
Income tax provision (benefit)
Current income tax provision (benefit):
Federal	$	2,778		$	15,392		$	(1,811	)
State	(472		)	1,965			1,474
Foreign	586			1,559			1,556
Total current	2,892			18,916			1,219
Deferred income tax provision (benefit):
Federal	(38,829		)	(5,490		)	14,107
State	(1,817		)	(1,141		)	668
Foreign	(701		)	(1,015		)	(129		)
Total deferred	(41,347		)	(7,646		)	14,646
	$	(38,455	)	$	11,270		$	15,865

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory and effective income tax rate for the years ended December 31 is as follows:



	2014			2013			2012
Income (loss) from continuing operations before income tax provision (benefit)	$	(76,573	)	$	55,720		$	58,028
Statutory taxes (benefit) at 35.0%	$	(26,801	)	$	19,502		$	20,310
State and local income taxes	(7,112		)	136			1,568
NACoal valuation allowance	5,742			(12		)	—
Non-deductible expenses	632			1,081			1,112
Percentage depletion	(8,572		)	(8,057		)	(4,963		)
R&D and other federal credits	(1,397		)	(1,173		)	(132		)
Other, net	322			520			(1,629		)
Tax settlements	(1,269		)	(727		)	(401		)
Income tax provision	$	(38,455	)	$	11,270		$	15,865
Effective income tax rate	50.2		%	20.2		%	27.3		%

Deferred Tax Assets and Liabilities

A detailed summary of the total deferred tax assets and liabilities in the Company's Consolidated Balance Sheets resulting from differences in the book and tax basis of assets and liabilities follows:



	December 31
	2014		2013
Deferred tax assets
Tax carryforwards	$	8,531	$	5,029
Inventories	7,027		4,709
Accrued expenses and reserves	28,842		26,019
Other employee benefits	13,264		11,432
Asset impairment⁽¹⁾	39,757		841
Other	9,199		6,534
Total deferred tax assets	106,620		54,564
Less: Valuation allowance	8,521		2,280
	98,099		52,284
Deferred tax liabilities
Depreciation and depletion	43,111		39,906
Partnership investment - development costs	19,535		20,215
Accrued pension benefits	858		1,037
Unremitted foreign earnings	223		168
Total deferred tax liabilities	63,727		61,326
Net deferred asset (liability)	$	34,372	$	(9,042	)

⁽¹⁾During the fourth quarter of 2014, NACoal's long-lived asset evaluation resulted in the Company recording a non-cash asset impairment charge of $105.1 million for the Reed Minerals' long-lived asset group. See Note 5, Note 6 and Note 10 for further discussion of the Company's long-lived asset impairment.

Summary of Tax Credit Carryforwards

The following table summarizes the tax carryforwards and associated carryforward periods and related valuation allowances where the Company has determined that realization is uncertain:



	December 31, 2014
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
Non-U.S. net operating loss	$	772	$	772	2020 - Indefinite
State losses	9,791		5,687		2015 - 2033
Alternative minimum tax credit	1,396		—		Indefinite
Total	$	11,959	$	6,459



	December 31, 2013
	Net deferred tax asset		Valuation allowance		Carryforwards expire during:
Non-U.S. net operating loss	$	430	$	351	2020 - Indefinite
State losses	6,967		2,845		2014 - 2033
Alternative minimum tax credit	70		—		Indefinite
Total	$	7,467	$	3,196

Unrecognized Tax Benefits Roll Forward



	2014			2013
Balance at January 1	$	7,848		$	2,691
Additions based on tax positions related to prior years	453			5,615
Additions based on tax positions related to the current year	921			78
Reductions due to settlements with taxing authorities	(4,701		)	(191		)
Reductions due to lapse of the applicable statute of limitations	(1,055		)	(345		)
Balance at December 31	$	3,466		$	7,848