Income Taxes |
7. INCOME TAXES
The components of income tax expense (benefit) are as follows: | | | | | | | | | | | | | | | | Year Ended December 31, | thousands | | 2014 | | 2013 | | 2012 | Current income tax expense (benefit) | | | | | | | Federal income tax expense (benefit) | | $ | (625 | ) | | $ | (30,222 | ) | | $ | 48,223 |
| State income tax expense (benefit) | | 69 |
| | 636 |
| | 2,924 |
| Total current income tax expense (benefit) | | (556 | ) | | (29,586 | ) | | 51,147 |
| Deferred income tax expense (benefit) | | | | | | | Federal income tax expense (benefit) | | 171 |
| | 32,930 |
| | (9,144 | ) | State income tax expense (benefit) | | 2,412 |
| | (1,039 | ) | | 6,881 |
| Total deferred income tax expense (benefit) | | 2,583 |
| | 31,891 |
| | (2,263 | ) | Total income tax expense | | $ | 2,027 |
| | $ | 2,305 |
| | $ | 48,884 |
|
Total income taxes differed from the amounts computed by applying the statutory income tax rate to income before income taxes. The sources of these differences are as follows: | | | | | | | | | | | | | | | | Year Ended December 31, | thousands except percentages | | 2014 | | 2013 | | 2012 | Income before income taxes | | $ | 389,406 |
| | $ | 284,183 |
| | $ | 169,441 |
| Statutory tax rate | | — | % | | — | % | | — | % | Tax computed at statutory rate | | $ | — |
| | $ | — |
| | $ | — |
| Adjustments resulting from: | | | | | | | Federal taxes on income attributable to Anadarko’s investment in WES | | (454 | ) | | 3,043 |
| | 41,557 |
| State taxes on income attributable to Anadarko’s investment in WES (net of federal benefit) | | — |
| | 621 |
| | 6,069 |
| Texas margin tax expense (benefit) | | 2,481 |
| | (1,359 | ) | | 1,258 |
| Income tax expense | | $ | 2,027 |
| | $ | 2,305 |
| | $ | 48,884 |
| Effective tax rate | | 1 | % | | 1 | % | | 29 | % |
The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows: | | | | | | | | | | | | December 31, | thousands | | 2014 | | 2013 | Credit carryforwards | | $ | 14 |
| | $ | 14 |
| Net current deferred income tax assets | | 14 |
| | 14 |
| Depreciable property | | (3,240 | ) | | (38,528 | ) | Credit carryforwards | | 512 |
| | 527 |
| Other intangible assets | | (1,450 | ) | | — |
| Other | | 7 |
| | 3 |
| Net long-term deferred income tax liabilities | | (4,171 | ) | | (37,998 | ) | Total net deferred income tax liabilities | | $ | (4,157 | ) | | $ | (37,984 | ) |
Credit carryforwards, which are available for use on future income tax returns, consist of $0.5 million of state income tax credits that expire in 2026. |