Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of Income tax expense (benefit) applicable to continuing operations

Income tax expense (benefit) applicable to continuing operations consists of the following (in thousands):

	For the years ended December 31,
	2012									2011							2010
	Current			Deferred			Total			Current		Deferred			Total		Current		Deferred		Total
Federal	$	49,236		$	(45,330	)	$	3,906		$	37,307	$	80,701		$	118,008	$	77,400	$	75,579	$	152,979
State		3,860			(1,747	)		2,113			6,226		3,108			9,334		27,597		7,595		35,192
Foreign		(20,080	)		(85,143	)		(105,223	)		20,889		(17,006	)		3,883		—		—		—
Total	$	33,016		$	(132,220	)	$	(99,204	)	$	64,422	$	66,803		$	131,225	$	104,997	$	83,174	$	188,171

Schedule of deferred income tax assets (liabilities)

As of December 31, 2012 and December 31, 2011, the significant components of the Company's deferred income tax assets and liabilities were (in thousands):

	December 31,
	2012			2011
Deferred income tax assets:
Net operating loss and credit carryforwards	$	156,387		$	62,336
Accrued expenses		14,827			18,773
Contingent interest		39,581			36,441
Postretirement benefits other than pensions		247,578			219,399
Pension obligations		23,725			20,229
Other		34,214			26,394
Total deferred tax assets		516,312			383,572
Less: valuation allowance for deferred tax assets		(20,919	)		(1,729	)
Net deferred income tax asset		495,393			381,843
Deferred income tax liabilities:
Prepaid expenses		(12,465	)		(11,915	)
British Columbia mineral tax		(243,229	)		(263,422	)
Property, plant and equipment		(943,523	)		(965,463	)
Total deferred income tax liabilities		(1,199,217	)		(1,240,800	)
Net deferred income tax liability	$	(703,824	)	$	(858,957	)
Deferred income taxes are classified as follows:
Current deferred income tax asset	$	58,526		$	61,079
Noncurrent deferred income tax asset		160,422			109,300
Other current liabilities		(1,085	)		—
Noncurrent deferred income tax liability		(921,687	)		(1,029,336	)
Net deferred tax liability	$	(703,824	)	$	(858,957	)

Reconciliation of effective tax rate to statutory rate

The income tax expense (benefit) at the Company's effective tax rate differed from the U.S. statutory rate of 35% as follows (in thousands):

	For the years ended December 31,
	2012			2011			2010
Income (loss) from continuing operations before income tax expense	$	(1,164,759	)	$	494,823		$	577,596
Tax expense (benefit) at statutory tax rate of 35%	$	(407,665	)	$	173,188		$	202,159
Effect of:
Excess depletion benefit		(26,107	)		(32,370	)		(31,572	)
Taxation of foreign operations		(11,945	)		(36,545	)		—
British Columbia mineral tax		(18,722	)		11,954			—
Goodwill impairment		372,543			—			—
State and local income tax, net of federal effect		2,470			7,394			26,134
U.S. domestic production activities benefit		(2,950	)		(5,583	)		(3,871	)
Acquisition costs		—			8,078			—
Other		(6,828	)		5,109			(4,679	)
Tax expense (benefit) recognized	$	(99,204	)	$	131,225		$	188,171

Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits excluding penalties and interest

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits excluding penalties and interest is as follows (in thousands):

	December 31,
	2012			2011			2010
Gross unrecognized tax benefits at beginning of year	$	92,758		$	39,191		$	34,300
Increases for tax positions taken in prior years		10,019			31,704			—
Increases in tax positions for the current year		8,058			23,169			5,216
Decreases for tax positions taken in prior years		(18,440	)		—			—
Decreases for lapse of statute of limitations		(2,764	)		—			—
Decreases for changes in temporary differences		—			(1,306	)		(325	)
Gross unrecognized tax benefits at end of year	$	89,631		$	92,758		$	39,191