Income Taxes

12 Months Ended

Dec. 31, 2018

INCOME TAXES During the fourth quarter of 2017, the U.S. government enacted the Tax Act. Among its many provisions, the Tax Act reduces the federal corporate tax rate from 35% to 21%, effective January 1, 2018. The change in tax law required the Company to revalue its existing net deferred tax liability using the lower rate in the period of enactment resulting in the recognition of an income tax benefit of $81.3 million for the year ended December 31, 2017 related to that revaluation. As a result, the Company recognized an overall income tax benefit of $57.7 million for the year ended December 31, 2017.

A reconciliation of income tax expense (benefit), computed by applying the federal statutory rate to pre-tax income (loss) to our effective income tax expense (benefit) is as follows:


	2018		2017		2016
	(In thousands)
Income tax expense (benefit) computed by applying the statutory rate	$	(11,290)	$	21,059	$	(72,386)
State income tax expense (benefit), net of federal benefit	(1,882)		1,655		(5,687)
Deferred tax liability revaluation ⁽¹⁾	—		(81,307)		—
Restricted stock shortfall	424		1,867		5,465
Non-controlling interest in Superior	(1,138)		—		—
Statutory depletion and other	(110)		(952)		1,414
Income tax benefit	$	(13,996)	$	(57,678)	$	(71,194)

__________________________

1.In 2017, the revaluation from the Tax Act.

For the periods indicated, the total provision for income taxes consisted of the following:


	2018		2017		2016
	(In thousands)
Current taxes:
Federal	$	(1,835)	$	—	$	—
State	(1,296)		5		15
	(3,131)		5		15
Deferred taxes:
Federal	(8,741)		(62,788)		(62,923)
State	(2,124)		5,105		(8,286)
	(10,865)		(57,683)		(71,209)
Total provision	$	(13,996)	$	(57,678)	$	(71,194)

Deferred tax assets and liabilities are comprised of the following at December 31:


	2018		2017
	(In thousands)
Deferred tax assets:
Allowance for losses and nondeductible accruals	$	27,953	$	32,242
Net operating loss carryforward	152,112		153,746
Alternative minimum tax and research and development tax credit carryforward	3,574		5,409
	183,639		191,397
Deferred tax liability:
Depreciation, depletion, amortization, and impairment	(291,542)		(324,874)
Investment in Superior	(36,845)		—
Net deferred tax liability	(144,748)		(133,477)
Current deferred tax asset	—		—
Non-current—deferred tax liability	$	(144,748)	$	(133,477)

Realization of the deferred tax assets are dependent on generating sufficient future taxable income. Although realization is not assured, management believes it is more likely than not that the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near-term if estimates of future taxable income are reduced. We file income tax returns in the U.S. federal jurisdiction and various states. We are no longer subject to U.S. federal tax examinations for years before 2016 or state income tax examinations by state taxing authorities for years before 2015. At December 31, 2018, we have federal net operating loss carryforwards of approximately $576.9 million which expire from 2021 to 2037.