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Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes |
(4) | INCOME TAXES
Our income tax expense was $396.5 million for the year ended December 31, 2014 compared to $33.9 million in 2013 and $12.1 million in 2012. Reconciliation between the statutory federal income tax rate and our effective income tax rate is as follows:
| Year Ended December 31, |
| 2014 |  | 2013 |  |  | 2012 |
Federal statutory tax rate | 35.0 | % |  | 35.0 | % |  |  | 35.0 | %
State | 3.1 |  |  | (2.3 | ) |  |  | 0.7 |
State apportionment rate change | (0.2 | ) |  | (14.9 | ) |  |  | ¾ |
Non-deductible executive compensation | 0.2 |  |  | 0.7 |  |  |  | 1.4 |
Valuation allowances | 0.2 |  |  | 3.5 |  |  |  | 8.8 |
Other | 0.2 |  |  | 0.6 |  |  |  | 2.2 |
Consolidated effective tax rate | 38.5 | % |  | 22.6 | % |  |  | 48.1 | %
Income tax expense (benefit) attributable to income before income taxes consists of the following (in thousands):
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2012 |
|  |  | Current |  |  | Deferred |  |  | Total |  |  | Current |  |  | Deferred |  |  | Total |  |  | Current |  |  | Deferred |  |  | Total |
U.S. federal |  | $ | ¾ |  |  | $ | 361,152 |  |  | $ | 361,152 |  |  | $ | ¾ |  |  | $ | 58,527 |  |  | $ | 58,527 |  |  | $ | — |  |  | $ | 11,873 |  |  | $ | 11,873 |
U.S. state and local |  |  | 1 |  |  |  | 35,350 |  |  |  | 35,351 |  |  |  | (143 | ) |  |  | (24,527 | ) |  |  | (24,670 | ) |  |  | (1,778 | ) |  |  | 1,959 |  |  |  | 181 |
Total |  | $ | 1 |  |  | $ | 396,502 |  |  | $ | 396,503 |  |  | $ | (143 | ) |  | $ | 34,000 |  |  | $ | 33,857 |  |  | $ | (1,778 | ) |  | $ | 13,832 |  |  | $ | 12,054 |
Significant components of deferred tax assets and liabilities are as follows:
| December 31, |
| 2014 |  |  | 2013 |
| (in thousands) |
Deferred tax assets: |  |  |  |  |  |  |
Current |  |  |  |  |  |  |
Deferred compensation | $ | 9,286 |  |  | $ | 9,128 |
Current portion of asset retirement obligation |  | 5,745 |  |  |  | 1,854 |
Cumulative mark-to-market loss |  | 584 |  |  |  | 15,193 |
Net operating loss carryforward |  | — |  |  |  | 23,079 |
Other |  | 9,921 |  |  |  | 7,936 |
Total current |  | 25,536 |  |  |  | 57,190 |
Non-current |  |  |  |  |  |  |
Net operating loss carryforward |  | 176,812 |  |  |  | 57,266 |
Deferred compensation |  | 64,656 |  |  |  | 91,094 |
Equity compensation |  | 25,833 |  |  |  | 22,800 |
AMT credits and other credits |  | 4,447 |  |  |  | 4,122 |
Non-current portion of asset retirement obligation |  | 104,063 |  |  |  | 86,126 |
Cumulative mark-to-market loss |  | 65 |  |  |  | ¾ |
Other |  | 987 |  |  |  | 1,116 |
Valuation allowance |  | (16,599 | ) |  |  | (14,781 | )
Total non-current |  | 360,264 |  |  |  | 247,743 |
Deferred tax liabilities: |  |  |  |  |  |  |
Current |  |  |  |  |  |  |
Net gain in AOCI related to hedge derivatives |  | — |  |  |  | (3,987 | )
Other |  | (2,350 | ) |  |  | (1,789 | )
Cumulative mark-to-market gain |  | (138,773 | ) |  |  | ¾ |
Total current |  | (141,123 | ) |  |  | (5,776 | )
Non-current |  |  |  |  |  |  |
Depreciation, depletion and investments |  | (1,342,039 | ) |  |  | (1,010,757 | )
Cumulative mark-to-market gain |  | (15,410 | ) |  |  | (6,424 | )
Other |  | (310 | ) |  |  | (2,542 | )
Total non-current |  | (1,357,759 | ) |  |  | (1,019,723 | )
Net deferred tax liability | $ | (1,113,082 | ) |  | $ | (720,566 | )
At December 31, 2014, deferred tax liabilities exceeded deferred tax assets by $1.1 billion. As of December 31, 2014, we have a $7.8 million valuation allowance on the deferred tax asset related to our deferred compensation plan for planned future distributions to certain executives to the extent that their estimated future compensation plus distribution amounts would exceed the $1.0 million deductible limit provided under I.R.C. Section 162(m). We also have an $8.8 million valuation allowance on our Oklahoma net operating loss carryforwards. At December 31, 2014, we had regular net operating loss (“NOL”) carryforwards of $641.4 million and alternative minimum tax (“AMT”) NOL carryforwards of $557.3 million that expire between 2018 and 2034. Our federal deferred tax asset related to regular NOL carryforwards at December 31, 2014 was $130.8 million, which is net of the Accounting Standards Codification 718, “Stock Compensation” reduction for unrealized benefits, related to NOL’s created by excess tax deductions that have not generated current tax benefits. At December 31, 2014, we have AMT credit carryforwards of $665,000 that are not subject to limitation or expiration. We file consolidated tax returns in the United States federal jurisdiction. We file separate company state income tax returns in Louisiana, Mississippi, Pennsylvania and Virginia and file consolidated or unitary state income tax returns in Oklahoma, Texas and West Virginia. We are subject to U.S. Federal income tax examinations for the years 2011 and after and we are subject to various state tax examinations for years 2010 and after. We have not extended the statute of limitation period in any income tax jurisdiction. Our policy is to recognize interest related to income tax expense in interest expense and penalties in general and administrative expense. We do not have any accrued interest or penalties related to tax amounts as of December 31, 2014. Throughout 2014, our unrecognized tax benefits were not material.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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