Taxes on Income

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Taxes on Income

8. Taxes on Income

The following table summarizes the Company's income taxes for the periods presented.

		Successor		Predecessor
		Period from Acquisition (March 26, 2012) to March 31, 2012		Period from January 1, 2012 to March 25, 2012		Three-month period ended March 31, 2011
		(In thousands)		(In thousands)
Current:
	Federal	$	-	$	-	$	37
	State		-		5		(8,202)
			-		5		(8,165)
Deferred:
	Federal		(10,821)		19,861		24,185
	State		(1,113)		3,005		2,622
			(11,934)		22,866		26,807
Total federal and state income tax
	expense (benefit)	$	(11,934)	$	22,871	$	18,642
Effective tax rate			24%		31%		24%

In the predecessor period, the Company's EITR was generally lower than the U.S. federal income tax statutory rate of 35 percent primarily due to the expected deductions for the anticipated receipt of dividends associated with earnings from the Company's unconsolidated investment in Citrus. In the successor period, the earnings from Citrus and the related dividends received deductions will no longer be applicable to the Company because of the Company's contribution of its unconsolidated investment in Citrus to ETP, a subsidiary of ETE.In the successor period, the Company's EITR was impacted by non-deductible excess parachute payments resulting from Merger-related employee severance expenses.