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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES: Income tax expense (benefit) provided on earnings from continuing operations consisted of:
| For The Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |
U.S. Federal | $ | (103,562 | ) |  | $ | 19,726 |  |  | $ | 18,388 |
U.S. State | (8,699 | ) |  | (5,657 | ) |  | 2,724 |
Non-U.S. | 1,966 |  |  | 964 |  |  | 1,411 |
| (110,295 | ) |  | 15,033 |  |  | 22,523 |
Deferred: |  |  |  |  |
U.S. Federal | 124,766 |  |  | (181,859 | ) |  | (12,581 | )
U.S. State | (4,461 | ) |  | 41,387 |  |  | 5,262 |
| 120,305 |  |  | (140,472 | ) |  | (7,319 | )
Total Income Tax Expense (Benefit) | $ | 10,010 |  |  | $ | (125,439 | ) |  | $ | 15,204 |
The components of the net deferred taxes are as follows:
| December 31,
| 2016 |  | 2015
Deferred Tax Assets: |  |  |
Postretirement benefits other than pensions | $ | 260,959 |  |  | $ | 257,604 |
Alternative minimum tax | 219,872 |  |  | 143,122 |
Net operating loss - Federal | 144,450 |  |  | 165,951 |
Net operating loss - State | 74,310 |  |  | 76,171 |
Gas derivatives | 72,105 |  |  | — |
Gas well closing | 68,585 |  |  | 79,246 |
Pneumoconiosis benefits | 43,997 |  |  | 44,830 |
Salary retirement | 42,393 |  |  | 30,177 |
Mine closing | 39,860 |  |  | 63,399 |
Foreign tax credit | 39,850 |  |  | 39,850 |
Workers' compensation | 30,758 |  |  | 31,544 |
Mine subsidence | 29,532 |  |  | 44,317 |
Capital lease | 2,925 |  |  | 4,404 |
Equity Partnerships | — |  |  | 45,746 |
Reclamation | — |  |  | 14,122 |
Other | 66,724 |  |  | 65,427 |
Total Deferred Tax Assets | 1,136,320 |  |  | 1,105,910 |
Valuation Allowance | (282,778 | ) |  | (78,306 | )
Net Deferred Tax Assets | 853,542 |  |  | 1,027,604 |
Deferred Tax Liabilities: |  |  |
Property, plant and equipment | (782,710 | ) |  | (946,778 | )
Equity Partnerships | (40,200 | ) |  | — |
Advance mining royalties | (22,326 | ) |  | (44,921 | )
Gas derivatives | — |  |  | (105,864 | )
Other | (4,016 | ) |  | (4,670 | )
Total Deferred Tax Liabilities | (849,252 | ) |  | (1,102,233 | )
Net Deferred Tax Asset (Liability) | $ | 4,290 |  |  | $ | (74,629 | )
A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. All available evidence, both positive and negative, must be considered in determining the need for a valuation allowance. For the years ended December 31, 2016 and 2015, positive evidence considered included financial earnings generated over the past three years for certain subsidiaries, reversals of financial to tax temporary differences and the implementation of and/or ability to employ various tax planning strategies. Negative evidence included financial and tax losses generated in prior periods, the inability to achieve forecasted results for those periods and the expectation that future financial results from normal operations would not be sufficient to support full utilization of certain tax credits within the foreseeable future. CONSOL Energy continues to report, on an after federal tax basis, a deferred tax asset related to state operating losses of $74,310 with a related valuation allowance of $60,488 at December 31, 2016. The deferred tax asset related to state operating losses, on an after tax adjusted basis, was $76,171 with a related valuation allowance of $42,983 at December 31, 2015. A review of positive and negative evidence regarding these tax benefits concluded that the valuation allowances for various CONSOL Energy subsidiaries was warranted. The net operating losses expire at various times between 2017 and 2036. A valuation allowance on foreign tax credits of $39,850 and $25,903 has been recorded at December 31, 2016 and 2015, respectively. The foreign tax credits expire at various times between 2021 and 2023. A valuation allowance on charitable contribution carry-forwards of $5,051 has been recorded for 2016. The charitable contributions carry-forwards expire at various times between 2018 and 2021. No such valuation allowance was recorded for 2015. The deferred tax assets attributable to the state tax effect of future deductible temporary differences for certain CONSOL Energy subsidiaries with histories of financial and tax losses were also reviewed for positive and negative evidence regarding the realization of the deferred tax assets. A valuation allowance of $10,591 and $9,420 on an after federal tax adjusted basis has also been recorded for 2016 and 2015, respectively. During 2016, the deferred tax asset relating to federal alternative minimum tax credits increased $76,750, to $219,872 at December 31, 2016 from $143,122 at December 31, 2015. This increase was primarily attributable to restoring previously monetized alternative minimum tax credits. This restoration was created by an agreement reached with the IRS to accelerate certain tax depreciation deductions in exchange for forgoing previously claimed alternative minimum tax credit monetization. At December 31, 2016, a valuation allowance of $166,798 was recorded against these alternative minimum tax credits, based on management's view that negative evidence with respect to their realizability outweighed positive evidence. There was no such valuation allowance at December 31, 2015. These credits do not expire and will be able to be fully utilized when sufficient operating income is generated by the Company. Management will continue to assess the potential for realized deferred tax assets based upon income forecast data and the feasibility of future tax planning strategies and may record adjustments to valuation allowances against deferred tax assets in future periods, as appropriate, that could materially impact net income. The following is a reconciliation, stated as a percentage of pretax income, of the United States statutory federal income tax rate to CONSOL Energy's effective tax rate:
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
Statutory U.S. federal income tax rate | $ | (187,218 | ) |  | 35.0 | % |  | $ | (166,497 | ) |  | 35.0 | % |  | $ | 63,053 |  |  | 35.0 | %
Excess tax depletion | (18,960 | ) |  | 3.5 |  |  | (29,526 | ) |  | 6.2 |  |  | (42,302 | ) |  | (23.5 | )
Effect of domestic production activities | — |  |  | — |  |  | — |  |  | — |  |  | (1,235 | ) |  | (0.7 | )
Federal tax accrual to tax return reconciliation | (6,789 | ) |  | 1.3 |  |  | 13,576 |  |  | (2.9 | ) |  | (8,331 | ) |  | (4.6 | )
IRS and state tax examination settlements | 36,619 |  |  | (6.8 | ) |  | (36 | ) |  | — |  |  | (5,248 | ) |  | (2.9 | )
Net effect of state income taxes | (25,629 | ) |  | 4.8 |  |  | (10,109 | ) |  | 2.1 |  |  | 5,235 |  |  | 2.9 |
Effect of change in federal valuation allowance | 187,759 |  |  | (35.1 | ) |  | 25,903 |  |  | (5.4 | ) |  | — |  |  | — |
Effect of change in state valuation allowance | 20,047 |  |  | (3.7 | ) |  | 39,492 |  |  | (8.3 | ) |  | (1,436 | ) |  | (0.8 | )
Effect of foreign tax | 1,966 |  |  | (0.4 | ) |  | 964 |  |  | (0.2 | ) |  | 1,411 |  |  | 0.8 |
Other | 2,215 |  |  | (0.5 | ) |  | 794 |  |  | (0.2 | ) |  | 4,057 |  |  | 2.1 |
Income Tax Expense (Benefit) / Effective Rate | $ | 10,010 |  |  | (1.9 | )% |  | $ | (125,439 | ) |  | 26.3 | % |  | $ | 15,204 |  |  | 8.3 | %
As part of CONSOL Energy's IRS examination of the tax years 2010-2013, bonus depreciation was claimed resulting in a net cash refund of $92,000. The bonus depreciation deduction adversely impacts earnings by reducing the Company's percentage depletion adjustment on its mining operations and reducing the Section 199 manufacturing deduction in the years 2008-2012. This resulted in a net non-cash charge to earnings of $36,619. A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits is as follows:
| For the Years Ended
| December 31,
| 2016 |  | 2015
Balance at beginning of period | $ | 12,702 |  |  | $ | 4,265 |
Increase in unrecognized tax benefits resulting from tax positions taken during current period | 666 |  |  | — |
Increase in unrecognized tax benefits resulting from tax positions taken during prior periods | — |  |  | 8,437 |
Reduction of unrecognized tax benefits as a result of a settlement with taxing authorities | (4,265 | ) |  | — |
Balance at end of period | $ | 9,103 |  |  | $ | 12,702 |
If these unrecognized tax benefits were recognized, $666 and $4,265 would affect CONSOL Energy's effective income tax rate for 2016 and 2015, respectively. CONSOL Energy and its subsidiaries file income tax returns in the United States and returns within various states and Canadian jurisdictions. With few exceptions, the Company is no longer subject to United States federal, state, local or non-U.S. income tax examinations by tax authorities for the years before 2010. CONSOL Energy recognizes interest accrued related to unrecognized tax benefits in its interest expense. As of December 31, 2016 and 2015, the Company had an accrued liability of $305 and $53, respectively, for interest related to uncertain tax positions. Interest expense of $252 and $53 was recorded in the Company's Consolidated Statements of Income for the years ended December 31, 2016 and 2015, respectively. During the years ended December 31, 2016 and 2015, CONSOL Energy paid no interest related to income tax deficiencies. CONSOL Energy recognizes penalties accrued related to uncertain tax positions in its income tax expense. As of December 31, 2016 and 2015, CONSOL Energy had no accrued liabilities for tax penalties.

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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 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 2: 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 Reference 3: 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 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 + Details
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