Alpha Metallurgical Resources, Inc.AMR
Alpha Metallurgical Resources, Inc. Income Taxes Disclosure
Income Taxes
Significant components of income tax (benefit) expense were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current tax (benefit) expense: | |||||||||||||||||
| Federal | $ | (1,977) | $ | 17,219 | $ | 80,254 | |||||||||||
| State | (55) | 389 | 3,527 | ||||||||||||||
| Total current | $ | (2,032) | $ | 17,608 | $ | 83,781 | |||||||||||
| Deferred tax (benefit) expense: | |||||||||||||||||
| Federal | $ | (22,301) | $ | 3,868 | $ | 35,824 | |||||||||||
| State | (1,439) | 1,695 | 3,898 | ||||||||||||||
| Total deferred | $ | (23,740) | $ | 5,563 | $ | 39,722 | |||||||||||
| Total income tax (benefit) expense: | |||||||||||||||||
| Federal | $ | (24,278) | $ | 21,087 | $ | 116,078 | |||||||||||
| State | (1,494) | 2,084 | 7,425 | ||||||||||||||
| Total | $ | (25,772) | $ | 23,171 | $ | 123,503 | |||||||||||
Materially all of the Company’s (loss) income before income taxes and associated income tax (benefit) expense arises from its domestic operations within the United States.
A reconciliation of statutory federal income tax expense on income to the actual income tax expense is as follows:
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
| U.S. federal statutory tax rate | $ | (18,366) | 21.0 | % | $ | 44,258 | 21.0 | % | $ | 177,547 | 21.0 | % | |||||||||||||||||||||||
State and local income taxes, net of federal income tax effect (1) | (1,181) | 1.4 | % | 1,647 | 0.8 | % | 5,866 | 0.7 | % | ||||||||||||||||||||||||||
| Effect of cross-border tax laws | |||||||||||||||||||||||||||||||||||
| Foreign-derived intangible income deduction | — | — | % | (2,718) | (1.3) | % | (24,291) | (2.9) | % | ||||||||||||||||||||||||||
| Change in valuation allowances | (43,361) | 49.6 | % | (341) | (0.2) | % | (3,045) | (0.4) | % | ||||||||||||||||||||||||||
| Nontaxable or nondeductible items | |||||||||||||||||||||||||||||||||||
| Percentage depletion allowance | (9,586) | 11.0 | % | (20,245) | (9.6) | % | (36,685) | (4.3) | % | ||||||||||||||||||||||||||
| Non-deductible compensation | 2,691 | (3.1) | % | 28,320 | 13.4 | % | 9,934 | 1.2 | % | ||||||||||||||||||||||||||
| Stock-based compensation | (1,124) | 1.3 | % | (28,710) | (13.6) | % | (6,968) | (0.8) | % | ||||||||||||||||||||||||||
| Other, net | 866 | (1.0) | % | 907 | 0.4 | % | 653 | 0.1 | % | ||||||||||||||||||||||||||
| Other adjustments | |||||||||||||||||||||||||||||||||||
| Capital loss expiration | 43,261 | (49.5) | % | — | — | % | — | — | % | ||||||||||||||||||||||||||
| Provision-to-return adjustment | 1,045 | (1.2) | % | 188 | 0.1 | % | 683 | 0.1 | % | ||||||||||||||||||||||||||
| Other, net | (17) | — | % | (135) | — | % | (191) | (0.1) | % | ||||||||||||||||||||||||||
| Effective tax rate | $ | (25,772) | 29.5 | % | $ | 23,171 | 11.0 | % | $ | 123,503 | 14.6 | % | |||||||||||||||||||||||
(1) State taxes in Illinois, Virginia, and West Virginia made up the majority (greater than 50 percent) of the tax effect in this category.
The amounts of cash taxes paid (net of refunds received) by the Company are as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| US federal | $ | — | $ | 11,000 | $ | 75,700 | |||||||||||
| US state and local | |||||||||||||||||
| Kentucky | (174) | (1,308) | (8) | ||||||||||||||
| Tennessee | 125 | 351 | 45 | ||||||||||||||
| Virginia | 2,225 | (1,756) | 3,037 | ||||||||||||||
| Other | (58) | 92 | 417 | ||||||||||||||
| Total | $ | 2,118 | $ | 8,379 | $ | 79,191 | |||||||||||
Deferred income taxes result from temporary differences between the reporting of amounts for financial statement purposes and income tax purposes. The net deferred tax assets and liabilities included in the Consolidated Balance Sheets include the following amounts:
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Asset retirement obligations | $ | 49,773 | $ | 47,561 | |||||||
| Reserves and accruals not currently deductible | 9,107 | 9,021 | |||||||||
| Workers’ compensation and black lung obligations | 41,659 | 38,538 | |||||||||
| Pension obligations | 17,336 | 18,246 | |||||||||
| Net operating loss carryforwards | 43,323 | 31,810 | |||||||||
| Capital loss carryforwards | — | 45,072 | |||||||||
| Other | 8,046 | 10,878 | |||||||||
| Gross deferred tax assets | 169,244 | 201,126 | |||||||||
| Less valuation allowance | (3,159) | (48,734) | |||||||||
| Deferred tax assets | $ | 166,085 | $ | 152,392 | |||||||
| Deferred tax liabilities: | |||||||||||
| Property, plant and mineral reserves | $ | (161,917) | $ | (174,031) | |||||||
| Acquired intangibles | (6,250) | (7,371) | |||||||||
| Prepaid expenses | (3,648) | (3,900) | |||||||||
| Other | (1,616) | (1,060) | |||||||||
| Total deferred tax liabilities | (173,431) | (186,362) | |||||||||
| Net deferred tax liabilities | $ | (7,346) | $ | (33,970) | |||||||
Changes in the valuation allowance were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Valuation allowance beginning of period | $ | 48,734 | $ | 48,143 | $ | 53,801 | |||||||||||
| (Decrease) increase in valuation allowance recorded to income tax expense | (45,575) | 591 | (5,658) | ||||||||||||||
| Valuation allowance end of period | $ | 3,159 | $ | 48,734 | $ | 48,143 | |||||||||||
At December 31, 2025, the Company has recorded a deferred tax asset of $33,755 for federal net operating loss carryforwards, which represents the tax-effected amount of net operating loss carryforwards mathematically available for
utilization prior to statutory expiration. Underlying this deferred tax asset are approximately $11,000 of gross federal net operating loss carryforwards that are subject to an annual Internal Revenue Code Section 382 limitation of approximately $1,000, approximately $97,000 of gross federal net operating loss carryforwards that are subject to an annual Internal Revenue Code Section 382 limitation of approximately $17,500, and approximately $53,000 of gross federal net operating loss carryforwards that are not subject to an annual Internal Revenue Code Section 382 limitation. The gross federal net operating loss carryforwards of approximately $11,000 and $97,000 were generated prior to 2018 and will expire between years 2035 and 2037. The gross federal net operating loss carryforward of approximately $53,000 was generated in 2025 and is not subject to an expiration period. A valuation allowance is recorded against certain state net operating loss carryforwards to the extent the Company is unable to support their realization.
The Company has no liability for uncertain tax positions for the years ended December 31, 2025, 2024, and 2023.
The Company’s policy is to classify interest and penalties related to uncertain tax positions as part of income tax expense. The Company did not accrue any interest and penalties relating to uncertain positions on its Consolidated Statements of Operations for the years ended December 31, 2025, 2024, and 2023. Similarly, the Company had no balances for accrued interest and penalties on its Consolidated Balance Sheets as of December 31, 2025 and 2024.
As of December 31, 2025, tax years 2022 – 2025 remain open to federal and state examination.
On July 4, 2025, legislation commonly referred to as the “One Big Beautiful Bill Act” (“OBBBA”) was signed into law. Changes made by the OBBBA include the reinstatement of 100% bonus depreciation, the reinstatement of immediate expensing for domestic research and experimentation costs, changes to the calculation of the foreign-derived intangible income deduction and the interest expense limitation, and the addition of metallurgical coal to the list of “applicable critical minerals” for purposes of the Section 45X credit. The Section 45X credit (also known as the advanced manufacturing production credit), as amended, provides a refundable tax credit equal to 2.5% of the production costs for metallurgical coal produced during tax years 2026 and 2029. The Company incorporated the effects of the OBBBA in its income tax provision for the year ended December 31, 2025.
On August 16, 2022, legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) was signed into law. Among other provisions, the IRA enacted a 15% corporate alternative minimum tax and a 1% excise tax on repurchases of corporate stock for tax years beginning after December 31, 2022. The Company determined that it is not subject to the corporate alternative minimum tax for the years ended December 31, 2025, 2024 and 2023. Refer to Note 7 for information on the excise tax on repurchases of the Company’s corporate stock.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 18, 2020 | |
| 2018 | Apr 1, 2019 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.