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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes |
(6) | Income Taxes
Our income tax benefit was $25.6 million for the year ended December 31, 2020 compared to $500.3 million in 2019 and $30.5 million in 2018. Reconciliation between the statutory federal income tax rate and our effective income tax rate is as follows:
| Year Ended December 31, |
| 2020 |  | 2019 |  |  | 2018 |
Federal statutory tax rate | 21.0 | % |  | 21.0 | % |  |  | 21.0 | %
State, net of federal benefit | 5.2 |  |  | 3.8 |  |  |  | (0.3 | )
State rate and law change | 4.3 |  |  | 1.8 |  |  |  | 0.9 |
Valuation allowances | (26.3 | ) |  | (3.8 | ) |  |  | (0.4 | )
Non-deductible equity compensation | (0.7 | ) |  | (0.2 | ) |  |  | (0.1 | )
Goodwill impairment | — |  |  | — |  |  |  | (19.4 | )
Consolidated effective tax rate | 3.5 | % |  | 22.6 | % |  |  | 1.7 | %
Income tax (benefit) expense attributable to (loss) income before income taxes consists of the following (in thousands):
|  |  | 2020 |  |  |  | 2019 |  |  |  | 2018 |
|  |  | Current |  |  | Deferred |  |  | Total |  |  | Current |  |  | Deferred |  |  | Total |  |  | Current |  |  | Deferred |  |  | Total |  |
U.S. federal |  | $ | (366 | ) |  | $ | (24,489 | ) |  | $ | (24,855 | ) |  | $ | — |  |  | $ | (434,585 | ) |  | $ | (434,585 | ) |  | $ | — |  |  | $ | (25,322 | ) |  | $ | (25,322 | )
U.S. state and local |  |  | (157 | ) |  |  | (540 | ) |  |  | (697 | ) |  |  | 6,147 |  |  |  | (71,853 | ) |  |  | (65,706 | ) |  |  | — |  |  |  | (5,167 | ) |  |  | (5,167 | )
Total |  | $ | (523 | ) |  | $ | (25,029 | ) |  | $ | (25,552 | ) |  | $ | 6,147 |  |  | $ | (506,438 | ) |  | $ | (500,291 | ) |  | $ | — |  |  | $ | (30,489 | ) |  | $ | (30,489 | )
Significant components of deferred tax assets and liabilities are as follows:
| December 31, |
| 2020 |  |  | 2019 |
| (in thousands) |
Deferred tax assets: |  |  |  |  |  |  |
Net operating loss carryforward | $ | 879,339 |  |  | $ | 581,324 |
Divestiture contract obligation |  | 132,352 |  |  |  | — |
Deferred compensation |  | 16,635 |  |  |  | 16,815 |
Equity compensation |  | 5,445 |  |  |  | 7,188 |
Asset retirement obligation |  | 18,923 |  |  |  | 60,064 |
Interest expense carryover |  | 15,757 |  |  |  | 18,035 |
Lease deferred tax assets |  | 16,070 |  |  |  | 16,450 |
Cumulative mark-to-market loss |  | 2,607 |  |  |  | — |
Other |  | 12,082 |  |  |  | 11,072 |
Valuation allowances: |  |  |  |  |  |  |
Federal |  | (152,499 | ) |  |  | (32,530 | )
State, net of federal benefit |  | (226,520 | ) |  |  | (158,296 | )
Total deferred tax assets |  | 720,191 |  |  |  | 520,122 |
Deferred tax liabilities: |  |  |  |  |  |  |
Depreciation and depletion |  | (839,869 | ) |  |  | (639,581 | )
Cumulative mark-to-market gain |  | — |  |  |  | (25,957 | )
Lease deferred tax liabilities |  | (15,058 | ) |  |  | (14,780 | )
Other |  | (531 | ) |  |  | — |
Total deferred tax liabilities |  | (855,458 | ) |  |  | (680,318 | )
Net deferred tax liability | $ | (135,267 | ) |  | $ | (160,196 | )
At December 31, 2020, deferred tax liabilities exceeded deferred tax assets by $135.3 million. As of December 31, 2020, we have a state valuation allowance of $226.5 million related to state tax attributes in Louisiana, Oklahoma, Pennsylvania, Texas and West Virginia. As of December 31, 20 20, we have federal valuation allowances of $152.5 million primarily related to our federal net operating loss carryforward (“NOL”), federal basis differences and charitable contribution carryforward. See the table below for activity related to these valuation allowances. The changes in our deferred tax asset valuation allowances are as follows (in thousands):
|  | 2020 |  |  |  | 2019 |  |  |  | 2018 |
Balance at the beginning of the year | $ | (190,826 | ) |  | $ | (120,347 | ) |  | $ | (125,134 | )
Charged to provision for income taxes: |  |  |  |  |  |  |  |  |  |  |
State net operating loss carryforwards |  | (56,903 | ) |  |  | (25,710 | ) |  |  | (23,926 | )
Federal net operating loss carryforwards |  | (113,988 | ) |  |  | 13,780 |  |  |  | 11,716 |
Non-recoverable deferred tax assets |  | (7,433 | ) |  |  | (28,208 | ) |  |  | — |
Other state valuation allowances |  | (11,321 | ) |  |  | (31,214 | ) |  |  | 16,380 |
Other federal valuation allowances |  | 244 |  |  |  | 346 |  |  |  | 494 |
Other |  | 1,208 |  |  |  | 527 |  |  |  | 123 |
Balance at the end of the year | $ | (379,019 | ) |  | $ | (190,826 | ) |  | $ | (120,347 | )
At December 31, 2020, we had federal NOL carryforwards of $3.2 billion. This includes $1.4 billion that expires between 2021 and 2038 and also includes $1.8 billion of NOL carryforwards generated after 2017 that do not expire. We have state NOL carryforwards in Pennsylvania of $935.0 million that expire between 2027 and 2040 and in Louisiana, we have state NOL carryforwards of $1.4 billion that expire between 2034 and 2040. We file consolidated tax returns in the United States federal jurisdiction. We file separate company state income tax returns in Louisiana and Pennsylvania 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 2017 and after and we are subject to various state tax examinations for years 2016 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, 2020. Throughout 2020 and 2019, 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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