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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
(Benefit) Provision for Income Taxes | The Company’s income tax provision (benefit) consisted of the following components for the years ended December 31, 2013, 2012 and 2011 (in thousands):
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Current |  |  |  |  |
Federal | $ | 3,842 |  |  | $ | (72 | ) |  | $ | 618 |
State | 1,842 |  |  | (2 | ) |  | 551 |
| 5,684 |  |  | (74 | ) |  | 1,169 |
Deferred |  |  |  |  |
Federal | — |  |  | (97,410 | ) |  | (6,447 | )
State | — |  |  | (2,878 | ) |  | (539 | )
| — |  |  | (100,288 | ) |  | (6,986 | )
Total provision (benefit) | 5,684 |  |  | (100,362 | ) |  | (5,817 | )
Less: income tax provision attributable to noncontrolling interest | 308 |  |  | 304 |  |  | 109 |
Total provision (benefit) attributable to SandRidge Energy, Inc. | $ | 5,376 |  |  | $ | (100,666 | ) |  | $ | (5,926 | )
Reconciliation of Provision (Benefit) for Income Taxes at Statutory Federal Tax Rate | A reconciliation of the provision (benefit) for income taxes at the statutory federal tax rate to the Company’s actual income tax benefit is as follows for the years ended December 31, 2013, 2012 and 2011 (in thousands):
| 2013 |  | 2012 |  | 2011
Computed at federal statutory rate | $ | (178,078 | ) |  | $ | 51,173 |  |  | $ | 54,800 |
State taxes, net of federal benefit | (886 | ) |  | 8,913 |  |  | 5,231 |
Non-deductible expenses | 2,589 |  |  | 7,247 |  |  | 6,394 |
Stock-based compensation | 7,611 |  |  | 7,172 |  |  | 8,229 |
Net effects of consolidating the non-controlling interests’ tax provisions | (13,901 | ) |  | (37,047 | ) |  | (19,120 | )
Bargain purchase gain | — |  |  | (42,944 | ) |  | — |
Impairment of non-deductible goodwill | — |  |  | 71,885 |  |  | — |
Change in valuation allowance | 188,599 |  |  | (66,429 | ) |  | (51,631 | )
Valuation allowance release | — |  |  | (100,288 | ) |  | (5,290 | )
Other | (558 | ) |  | (348 | ) |  | (4,539 | )
Total provision (benefit) attributable to SandRidge Energy, Inc. | $ | 5,376 |  |  | $ | (100,666 | ) |  | $ | (5,926 | )
Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
| December 31,
| 2013 |  | 2012
Deferred tax liabilities |  |  |
Investments(1) | $ | 301,447 |  |  | $ | 334,331 |
Property, plant and equipment | 180,140 |  |  | 198,424 |
Derivative contracts | — |  |  | 24,819 |
Total deferred tax liabilities | 481,587 |  |  | 557,574 |
Deferred tax assets |  |  |
Derivative contracts | 3,692 |  |  | — |
Allowance for doubtful accounts | 20,358 |  |  | 17,713 |
Net operating loss carryforwards | 973,675 |  |  | 859,328 |
Litigation settlement | 355 |  |  | 7,200 |
Compensation and benefits | 24,895 |  |  | 13,935 |
Alternative minimum tax credits and other carryforwards | 46,624 |  |  | 42,242 |
Asset retirement obligations | 147,626 |  |  | 172,229 |
Under-delivery obligation | 15,012 |  |  | — |
Other | 2,801 |  |  | 2,193 |
Total deferred tax assets | 1,235,038 |  |  | 1,114,840 |
Valuation allowance | (753,451 | ) |  | (557,266 | )
Net deferred tax liability | $ | — |  |  | $ | — |
____________________
(1) | Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts. See Note 5 for further discussion of the Royalty Trusts.
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| December 31,
| 2013 |  | 2012
Unrecognized tax benefit at January 1 | $ | 1,330 |  |  | $ | 1,758 |
Changes to unrecognized tax benefits related to the current year | 262 |  |  | — |
Changes to unrecognized tax benefits related to a prior year | (210 | ) |  | (428 | )
Unrecognized tax benefit at December 31 | $ | 1,382 |  |  | $ | 1,330 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: 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 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: 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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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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