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Income Taxes
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We are not a taxable entity for federal income tax purposes. As such, we do not directly pay federal income taxes. Other than with respect to our corporate subsidiaries and the Texas Margin Tax, our taxable income or loss is includible in the federal income tax returns of each of our partners.
A few of our operations are owned by wholly-owned corporate subsidiaries that are taxable as corporations. We pay federal and state income taxes on these operations.
As a result of the Tax Cuts and Jobs Act enacted on December 22, 2017, The Partnership remeasured its U.S. deferred tax assets and liabilities during the year ended December 31, 2017 and recorded a $5.3 million benefit relating to the U.S. federal corporate tax rate change.
Our income tax (benefit) expense is as follows:
 
 
Year Ended December 31,
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
Federal
$

 
$

 
$

State
810

 
100

 
1,200

Total current income tax expense
$
810

 
$
100

 
$
1,200

Deferred:
 
 
 
 
 
Federal
$
114

 
$
(5,530
)
 
$
1,862

State
574

 
1,471

 
280

Total deferred income tax expense (benefit)
$
688

 
$
(4,059
)
 
$
2,142

Total income tax expense (benefit)
$
1,498

 
$
(3,959
)
 
$
3,342



Deferred income taxes relate to temporary differences based on tax laws and statutory rates that were enacted at the balance sheet date. Deferred tax assets and liabilities consist of the following:
 
 
December 31,
 
2018
 
2017
Deferred tax assets:
 
 
 
Net operating loss carryforwards
$
11,491

 
$
9,506

Total long-term deferred tax asset
11,491

 
9,506

Valuation allowances
(1,758
)
 
(1,285
)
Total deferred tax assets
$
9,733

 
$
8,221

Deferred tax liabilities:
 
 
 
Long-term:
 
 
 
Fixed assets
$
(2,893
)
 
$
(3,896
)
Intangible assets
(18,209
)
 
(15,797
)
Other
(1,207
)
 
(441
)
Total long-term liability
(22,309
)
 
(20,134
)
Total deferred tax liabilities
$
(22,309
)
 
$
(20,134
)
Total net deferred tax liability
$
(12,576
)
 
$
(11,913
)

We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions.
The reconciliation between the Partnership's effective tax rate on income (loss) from operations and the statutory tax rate is as follows:

 
Year Ended December 31,
 
2018
 
2017
 
2016
Income(loss) from operations before income taxes
$
(10,294
)
 
$
78,120

 
$
114,424

Partnership income not subject to federal income tax
10,824

 
(77,704
)
 
(109,111
)
Income subject to federal income taxes
$
530

 
$
416

 
$
5,313

Tax expense at federal statutory rate
$
111

 
$
146

 
$
1,860

State income taxes, net of federal tax
1,285

 
1,396

 
949

Return to provision, federal and state
(128
)
 
(163
)
 
(198
)
Other
230

 
(68
)
 
731

Re-measurement of deferred taxes due to enacted tax rate change

 
(5,270
)
 

Income tax expense (benefit)
$
1,498

 
$
(3,959
)
 
$
3,342

Effective tax rate on income from operations before income taxes
(15
)%
 
(5
)%
 
3
%
 
At December 31, 2018, 2017 and 2016, we had no uncertain tax positions.